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Studying Actuarial Science in Malaysia is a Pathway to a Financially Rewarding Career

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Choosing to Study Actuarial Science in Malaysia can get you into High Paying Jobs in your Future Career

One of the main aim of getting a university education in Malaysia is to find a stable job so that you can take care of yourself and your family. However, nowadays, with the high cost of living, just finding any job will not do. You will need to find a job that has a high salary.
Choosing the right course is just the first step in the right direction of achieving a life with stable or high income. And to get a job with a high salary, you need to choose a degree course that has a high job demand and salary. The career in Actuarial Science in Malaysia is one that's financially rewarding should you work hard for it.
In addition, the university that you study that course at also plays an important part in helping you to gain the knowledge and skills to perform well in your career and earn a high income.

How much do Actuaries Earn in Malaysia?

For those who are willing to work hard, Actuary is a financially-rewarding profession. Experienced fellows have the potential to earn from $150,000 to $250,000 annually, and many actuaries earn more than that.
Compensation may vary significantly according to years of experience, industry, geographic region, and responsibilities. For example, an actuary with a fellowship designation working as a financial manager in the banking industry could earn a higher salary than another fellow working in the health insurance industry.
The actuarial profession is perfect for individuals who enjoy challenges and problems solving. Those who develop a track-record of success will have many opportunities for growth and advancement.
Most employers of actuaries award merit increases as you gain experience and pass the actuarial examinations. Most companies also offer cash bonuses, salary increases, and promotions for each professional designation achieved.
Skills acquired by actuaries, especially the quantitative analysis of risk, are valued in the marketplace. As such, those who have the will to succeed can aspire to career advancement with an actuarial credential.
According to Hays Recruitment Malaysia 2019 Salary Guide
The yearly salary for the various job positions in actuaries in Malaysia are:

Chief Actuaries 420 - 660k
Department Head 180 - 300k
Senior Manager 180 - 264k
Manager 84 - 192k
Associate 60 - 84k

According to the 2020 Robert Walters Salary Report
The annual salary for an actuary in Malaysia is:

			4 - 7 Years Experience	8 - 12 Years Experience	12+ Years Experience
Actuaries - Pricing & Valuation			90 - 180k a year	180 - 264k a year	264k+ a year

What is the Job Demand for Actuaries in Malaysia?

With only 100 qualified actuaries in Malaysia, the market for actuaries can perhaps still be considered unsaturated. Due to the demand for actuarial technical skills and knowledge, there are vast career options and opportunities for an actuary. Traditionally, actuaries worked only in the insurance industry.
However, with the growing acknowledgement and recognition of actuarial skills today across the various financial sectors, the potential employment opportunities of an actuary have expanded to encompass banks, investment companies, security and commodity broker firms, regulators and even lecturing in the education sector. With such demand, there is an ever-increasing need for actuaries all around the world.
Given the expected continuous growth in the insurance market, it is anticipated that the demand for actuaries in Malaysia will continue to grow in the next few decades. Future regulatory developments (e.g. requirement for certification of IBNR) and the increasing need for risk management are likely to result in significant increase in demand for actuarial services by general insurers.
Currently, Malaysians are generally under-insured or not insured, and there is a lack of understanding of insurance products by the general public. However, as the country develops and the middle-working class population grows, there will be an increase in financial awareness. This will create a lot of potential growth in the Malaysian market. There is a demand in Life and takaful insurance, since the majority of Malaysians are Muslims where there is demand for Sharia compliant products.

Where do Actuaries Work?

Actuarial science is also an internationally-recognised qualification that is a passport to working anywhere globally. Actuaries are in demand mainly in the financial services sector, working in banks, insurance and investment companies as well as government bodies.
Actuaries are excellent risk managers. They work in the specialist areas of insurance, pensions, benefits, healthcare, investments and banking, or for any large organization where risk management plays an important role, or for a consultancy advising on all sorts of different projects.
Therefore, actuaries play very important roles in the insurance and finance industries in Malaysia. They include life insurance companies, general insurance companies, and reinsurance companies.
Actuarial Science is a job that is recession-proof, therefore providing security for your career.

Who Should Study Actuarial Science?

The work is challenging and intellectually stimulating, especially for those who love numbers and logic.
For an actuary, being good in mathematics is a must. However, actuaries must also have good verbal and written communication skills, strong computer skills, time-management skills, as well as possess good judgement, imagination and clear logical thinking.
They also should have a knack for problem-solving, be self-confident, and possess the ability to work under pressure. Sharpness, creativity, practicality coupled with good business sense are also some of the key personal attributes. An actuary who has devised a brilliant solution to complex problem must be able to explain his solution to non-actuaries!
You can also see your efforts having a big impact on the industry and society as a whole, as when you devise and formulate financially-secure benefit plans and programmes that serve to protect clients.

What will you Study in an Actuarial Science Degree in Malaysia?

Actuarial Science is a very comprehensive course in the way that it covers Mathematics, Finance, Economics, Accounting, Business Models, Computer Programming and Risk Management. As such, a high aptitude in Mathematics is highly required.
Actuarial science includes a number of interrelated subjects, including mathematics, probability theory, statistics, finance, economics, and computer science. Historically, actuarial science used deterministic models in the construction of tables and premiums. The science has gone through revolutionary changes during the last 30 years due to the proliferation of high speed computers and the union of stochastic actuarial models with modern financial theory.
Actuarial Science degree students at top universities in Malaysia will also learn Calculus, Statistics, Probability, and Financial Mathematics. With this fundamental Mathematical knowledge graduates will be able to solve complex actuarial problems.
Actuarial science is the discipline that applies mathematical and statistical methods to assess risk in insurance, finance and other industries and professions. Actuaries are professionals who are qualified in this field through intense education and experience. Upon completion of the actuarial science degree programme in Malaysia, actuaries must demonstrate their competence by passing a series of thorough professional examinations.
Being an actuary also requires you to master several computer programming languages such as Microsoft Excel, Microsoft Visual Basic, Microsoft Visual FoxPro, and most importantly, Prophet – an actuarial software designed to crunch a large database. If you do not enjoy learning programming languages or writing codes, actuarial science would not be the career for you.

Where do Actuaries Work in Malaysia?

Actuaries are normally found in the insurance industry. They also work in consulting, financial institutions, banks, investment, brokerages, or as lecturers.
The American Society of Actuaries defines actuaries as ‘professionals who provide expert advice and relevant solutions for business and societal problems that involve economic risk.’ In Malaysia, one of the places where actuaries are often found is at insurance companies. Using mathematical models based on statistical data, they are the brains behind the calculation of the amount of insurance premium that a policyholder has to pay.
With their readily transferable skills, actuaries can also be found in many other fields. Besides the hugely popular insurance field, an actuary can work in finance, marketing, manufacturing or in the development of new products.
For example, an actuary might be hired by a business to help determine where it should invest its money based on risk and potential return analysis. Opportunities for actuaries range from the education industry to research work and even to government agencies. Because of the importance of their work, actuaries are respected throughout the business community.
In Malaysia, most actuaries can be found in life insurance companies, financial institutions such as banks, consultancies providing advice in the fields of employee benefits, life insurance and general insurance, Bank Negara Malaysia and public universities.
The areas of work for actuaries are not limited to insurance firms only. Instead, the horizon for this line of job is very wide. Below are some of the areas of work which actuaries do:

Life Insurance / Family Takaful
General Insurance / General Takaful
Reinsurance / Retakaful
Actuarial Consulting
Investment and Financial Services
Employee Benefit Industry (e.g. EPF)
Government Sector (e.g. BNM)
Colleges and Universities

What is the Day-to-Day Job of an Actuaries in Malaysia?

In the insurance industry, actuaries are the financial engineers. Actuaries analyse and predict the probability that a potential event will generate a claim, and ascertain the amount of money needed for claims payouts. They are also involved in regulation, policy writing, product design and marketing of the products.
The main roles of actuaries in insurance companies are to calculate the premium for the insurance products, and determine whether the insurance company is financially solvent. In contrast, the roles of actuaries in the finance industry are in the field of risk management and assets liabilities management. They help in assessing all possible risks and manage them before the problems surface.
Actuaries are often required to work overtime in some aggressive companies, especially when they are to meet deadlines. As such, life of an actuary can be thrilling or stressful, depending on how you perceive it.
Combining their skills in mathematics, statistics, economics and finance, actuaries are able to gauge and make expert financial predictions about the future.

What areas can Actuaries Specialise in for their Job in Malaysia?

Actuaries can specialise in the following fields:

Traditional life insurance
- They focus on the analysis of mortality, the production of life tables and the application of interest to produce life insurance, annuities and endowment policies. It also includes credit and mortgage insurance, long term care insurance and health savings account.

Health insurance
- They focus on the analyses of rates of disability, morbidity, mortality, fertility and other contingencies. Also of great importance are the effects of consumer choice and the geographical distribution of medical services as well as the procedures and use of drugs and therapies.

Pension industry
- They measure costs of alternative strategies with regards to the design, maintenance or redesigning of pension plans. The strategies are greatly influenced by collective bargaining, the changing demographics of the workforce, changes in internal revenue code and financial and economic trends among others.

Property and casualty
- They focus on data collection, measurement, estimation, forecasting and valuation tools to provide financial and underwriting data for management to assess marketing opportunities and the required degree of risk taking.

Reinsurance
- Focus on designing and pricing reinsurance and retro-reinsurance schemes. Their responsibility also includes establishing reserve funds for known claims and future claims as well as catastrophes.

What is the Education Pathway to Become an Actuary in Malaysia?

The Actuarial Science degree programme has a heavy mathematical and statistical component. The first step after SPM or O-Levels, students will need to consider a private university in Malaysia that has a solid Actuarial Science degree programme that will help you prepare well for the professional papers. Students should have excellent overall results including Maths in order to tackle the academic rigours of the actuarial science programme.
Students after SPM or O-Levels with at least 5 credits including the relevant subjects may enter the Foundation in Business or Foundation in Arts for 1 year before continuing on to the Actuarial Studies degree. Pre-University graduates in Malaysia from programmes such as UEC, STPM, A-Levels, SAM, CPU, AUSMAT and others may enter directly into the Actuarial Science or Actuarial Studies degree providing they meet the minimum entry requirements.
After completing your degree, you can continue on to two of the more popular professional papers in Malaysia which are the Society of Actuaries (SoA) USA and the Institute and Faculty of Actuaries (IFoA) (UK).
Society of Actuaries (SOA) USA Pathway
One must pass the actuarial professional examinations and various on-the-job assessments, in addition to obtaining a degree. A normal actuarial studies degree spans 3 years. Outstanding private universities in Malaysia for Actuarial Science or Actuarial Maths degree with VEE Paper exemptions from SOA are Heriot-Watt University Malaysia, Asia Pacific University (APU), UCSI University and Taylor's University. Students should choose the best university in Malaysia for actuarial science to prepare them well to face the professional exams.
Thereafter, completing the professional exams may take another 3-7 years (considering working full-time while studying). The Society of Actuaries (SOA) has a series of examinations and modules that you can take to become a fully-qualified actuary. This is usually undertaken while one is already working as an entry-level actuary, and this certification process is often sponsored by the employer while the candidate gains practical experience at the same time.
Most people will take around six to eight years to complete the requirements to become an Associate, and another two or three years to become a Fellow, by which time one will usually be in one’s thirties.
After qualifying to be an actuary, one can choose to specialise in one of the areas of insurance, viz life, health protection, property, pensions etc. Later, one can also choose to work with a consulting firm or even be an independent consultant.
However, even those who did not manage to sit for all the exams will still be recognised for those that they have successfully completed. Those who have taken only the first three exams can qualify to become underwriters.

Institute and Faculty of Actuaries (IFoA) Curriculum 2019 Pathway

One of the pathways to become a professional actuaries in Malaysia is taking the professional papers from the Institute and Faculty of Actuaries (IFoA) UK. As a professional body the Institute and Faculty of Actuaries (IFoA) has a responsibility to ensure that the curriculum is relevant, up-to-date and reflects the skills, knowledge and attributes required of actuaries in an ever-changing global business environment. At the same time the IFoA, as a full member of the International Actuarial Association (IAA), must ensure that its curriculum reflects the international standards set by them.
To become an Associate member you need to complete 7 subjects of the Core Principles. The Core Principles cover three main areas which are Actuarial Statistics (CS), Actuarial Mathematics (CM) and Business (CB). Additionally, 3 Core Practices subjects (CP1, CP2 and CP3) either by examination or exemption and a minimum of 2 years of Personal and Professional Development (PPD).
To qualify as a Fellow you need to complete Two Specialist Principles subjects either by examination or exemption. You can choose 2 out of 9 subjects. Furthermore, you will need to complete One Specialist Advanced (Choose 1 out of 7 subjects) subject by examination or dissertation and a further minimum 1 year of Personal and Professional Development (PPD)
The best university in Malaysia for Actuarial Science would be Heriot-Watt University Malaysia where students can get 8-paper exemptions out of 15 needed to qualify as a Fellow at the Institute and Faculty of Actuaries (FIA), UK.
The Actuarial Science degree at Asia Pacific University (APU) has been awarded full accreditation from the Institute and Faculty of Actuaries (IFoA) (UK). APU is among the 7 universities in Asia to receive such worldwide recognition.

Where to Study the Best Degree for Actuarial Science in Malaysia?

At Asia Pacific University, Bachelor of Science (Hons) Actuarial Studies students will also receive credits for all the 3 Validated by Educational Experience (VEE) papers from SOA as long as they receive a minimum mark of 70% in the APU equivalent papers.
In addition, the Actuarial Science degree at Asia Pacific University (APU) has been awarded full accreditation from the IFoA (UK). APU is among the 7 universities in Asia to receive such worldwide recognition.
APU graduates who perform to the required standard can be eligible for exemption from CS1, CS2, CM1, CM2, CB1 and CB2. This is a 6-paper exemption out of 7 papers of the Core Principles Professional Papers for the new IFoA Curriculum 2019, which is the maximum paper exemptions.
In addition, the university has competent teaching staff with professional or specialized academic qualification, possessing working experience from actuarial industries/academia.
APU's Actuarial Science course syllabus is comprehensively structured in tandem and compliance with the 2 biggest actuarial bodies, the IFoA (UK) and the SOA (US).
Heriot-Watt University Malaysia's team of leading academics is internationally recognised for research, scholarship and teaching in mathematical and actuarial sciences. The Actuarial Science degree at Heriot-Watt University Malaysia receives the same exemptions from the VEE papers from SOA.
HWUM Bachelor’s degree mirrors the highly successful BSc Actuarial Science degree offered in the UK, which is accredited by the UK Actuarial Profession. This can significantly reduce the time taken to qualify as a Fellow of the Institute and Faculty of Actuaries.
Good performance in examinations means exemptions from all Core Technical subjects, CT1 to CT8, of the UK Institute and Faculty of Actuaries (IFoA) which can be converted to CS1 and 2, CM1 and 2 and CB1 and 2 under the new system of examinations, giving prospective actuaries an advantage over those in other mathematics programmes.
The degree is accredited by the Royal Statistical Society.
Students will receive a dual award University of the West of England, UK degree at Taylor's University for the BSc. (Hons) Actuarial Studies. Taylor's University offers a 3-year and a 4-year Actuarial Studies degree programme.
The 1-year internship is offered in the third year of the 4-year programme, students have the opportunity to broaden their knowledge and gain industry exposure that will help them excel in their final year of studies.
Furthermore, students can consider studying the BSc (Hons) Actuarial Science at affordable and top ranked UCSI University. Many of UCSI's students have completed 3 to 5 professional papers of the SOA during Year 2 and 3 of the Actuarial Science degree which reflects on the strength of their lecturers and curriculum.

EduSpiral Consultant Services - Best Universities in Malaysia

Saturday, April 11, 2020

Study Actuarial Science - High Job Demand & Salary in Malaysia