Sharian Raj, CEO of Senang.io, a leading insurtech platform in Malaysia, dives deep into the impact of the current national budget on their business. Examining both the positive aspects like supportive grants and the challenges of navigating bureaucracy, Sharian shares valuable insights. He doesn't stop there, outlining a compelling wishlist for the upcoming budget. From tax rebates for digital insurance to expansion grants and collaborative policymaking, Sharian's recommendations aim to propel the insurtech industry forward. He also offers his perspective on broader economic reforms and the potential impact of proposed tax changes. This interview sheds light on the dynamic relationship between Malaysia's evolving budget landscape and the burgeoning insurtech sector, with Senang.io positioned at the heart of the action.

Impact of the Current Budget:

1. How has the current Malaysian national budget influenced Senang.io’s operations and financial planning?
   The current budget has been highly supportive of digital companies like Senang.io. Various grants, incentives, and programs have been introduced to foster the growth of the digital economy, not just within Malaysia but regionally. This strategic direction aligns well with our expansion plans, enabling us to accelerate product development and scale our operations. Additionally, the budget’s emphasis on digital transformation across multiple sectors has created a conducive environment for the adoption of our insurtech solutions.
2. What specific measures from the current budget have had the most significant impact on your business strategies and services?
   One of the most impactful initiatives is theTalentCorpprogram, which focuses on upskilling and reskilling the workforce to meet the demands of the digital economy. This program has allowed us to recruit and retain top-tier talent, which is crucial for our innovation-driven business model. The government’s investment in digital infrastructure and emphasis on cybersecurity has also been pivotal, allowing us to enhance our platform’s robustness and scalability.
3. Can you share any challenges or opportunities that have arisen as a result of the current budget allocations?
   While the budget has opened many doors, one challenge we face is navigating the various layers of bureaucracy involved in accessing some of the grants and incentives. However, the opportunities far outweigh the challenges. The focus on financial inclusion, digitalization, and regional expansion has positioned Senang.io to explore new markets and innovate around underserved segments in the insurance industry, such as micro-insurance for rural communities.

Wishlist for the Upcoming Budget:

1. What are your top three priorities or requests for the upcoming budget to support the growth and sustainability of the insurtech sector?
   (a) Arebate for digital insurance productspurchased online that can be used to reduce personal or corporate income tax. This would incentivize both businesses and individuals to adopt digital insurance solutions, accelerating the industry’s growth.
   (b) The government should mandate that any insurance purchased by government agencies includes an element of digitalization, whether in distribution, servicing, or claims management. This would spur innovation and digital adoption within the industry.
   (c) Expansion grants for companies looking to establish a footprint overseas should not be limited to AI-based or tech-heavy companies. Insurtech companies, regardless of their focus on AI, can significantly benefit from this support.
2. How do you believe the government can better support digital insurance platforms through the next budget?
   The government can establish ajoint task forceinvolving industry stakeholders, Bank Negara Malaysia (BNM), and relevant ministries. This would enable collaborative policymaking, ensuring that regulations evolve in tandem with technological advancements. Furthermore, continuous financial and regulatory support for digital initiatives, especially those focusing on rural areas, would help drive financial inclusion.
3. Are there any specific tax reforms or incentives you hope to see introduced to benefit insurtech companies?
   We would welcomespecial tax incentivesfor insurtech and tech companies, specifically on the amortization of technology costs on the balance sheet. This would significantly reduce the financial burden associated with R&D and tech development, allowing us to reinvest those savings into expanding our services.

General Budget-Related Questions:

1. How do you view the government’s approach to economic reforms and their impact on the insurtech industry?
   While the government’s economic reforms show promise, they tend to focus on broad-stroke initiatives. More sector-specific reforms are needed to address the unique challenges and opportunities within the insurtech industry. For example, streamlining the approval processes for new digital products could greatly accelerate innovation and market penetration.
2. What are your thoughts on the proposed changes to the Service Tax and Capital Gains Tax, and how might they affect your business?
   The proposedCapital Gains Taxcould impact investor appetite within the insurtech industry. Investors may hesitate to engage if exit values are diminished due to taxation. This could affect growth-stage companies like Senang.io, which rely heavily on external investment to scale. Similarly, the increase in Service Tax could raise operational costs, particularly for services that involve third-party vendors or consultants.
3. How do you think the budget’s focus on the digital economy and financial inclusion will influence Senang.io’s operations and strategies?
   The budget’s emphasis on thedigital economyand financial inclusion aligns perfectly with Senang.io’s mission. It signals a strong push toward expanding digital platforms to underserved populations, providing us with clear direction on which industries and segments are likely to experience growth. By leveraging these insights, we can develop tailored products that address the needs of emerging customer bases, such as rural communities or lower-income groups, while ensuring that we remain at the forefront of digital innovation.

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