Malaysia’s first self-initiated employee Takaful plan makes protection simple, portable, and accessible for underserved employees and SMEs alike. OUCH!’s digital-first approach also helps SMEs offer meaningful coverage—without agents, paperwork or high costs.

As conversations around employee welfare and financial security gain momentum in Malaysia, OUCH!, the country’s first digital Takaful operator approved by Bank Negara Malaysia (BNM), is stepping forward to spotlight an existing yet underutilised solution designed for small and medium-sized enterprises (SMEs): a self-initiated, employer-sponsored employee Takaful plan that offers affordable and portable protection for underserved employees workers across the country.

This solution arrives at a crucial time for Malaysia’s financial ecosystem. Takaful penetration in the country remains low—less than 20% overall—and among SMEs, it is even more concerning. According to a 2023 PwC report, only 15% of Malaysian SMEs offer any form of insurance or Takaful coverage to their employees. The data also shows that micro-SMEs, which represent a large portion of the economy, account for over half of the underinsured and uninsured segment.

In response, the Malaysian government has made financial inclusion a key priority. Under Budget 2025, RM5 million has been allocated to subsidise micro-Takaful for small entrepreneurs, and RM30 Perlindungan Tenang vouchers have been introduced to encourage low-income participation. OUCH!’s plan directly supports these national goals by offering a proven, digital-first product that lowers the cost and complexity of employee protection.

The traditional notion that employee protection must be costly or difficult to manage has long deterred SMEs from offering coverage. OUCH! challenges that assumption with a system that’s easy to adopt, digital from end to end, and designed specifically with SMEs in mind. OUCH!’s flagship plan, Pusara Pro, allows employees to enrol themselves for Takaful coverage via a simple mobile application. Employers can support their teams by sponsoring contributions through a corporate programme, giving their workforce a strong foundation of security—without the complexity, overhead or exclusivity that traditionally comes with insurance.

With this model already available and functioning successfully, OUCH! is now working to raise greater awareness among SME owners, HR leaders, and employees who may not realise just how accessible and impactful this protection can be. Through the app, employees can complete their registration by secure digital verification (e-KYC), and answering a few straightforward health questions. Once eligibility is confirmed and the employer successfully contributes to their coverage, employees instantly receive their Takaful certificates, via email and within the app—no agents, paperwork or in-person meetings required.

At its core, Pusara Pro is a pure protection plan focused on essentials. It offers financial support for death and compassionate circumstances, without any savings or investment-linked components that tend to inflate premiums. Unlike conventional employer-linked insurance policies, coverage under OUCH!’s model is not tied to a person’s job. If an employee opts to leave their company, they have the option to continue their contributions on their own and retain their protection. This portability addresses a long-standing gap in the market, where job changes often result in sudden and complete loss of coverage. This lean, purpose-driven approach makes the plan significantly more affordable and easier to understand for both employers and employees.

Importantly, inclusivity is at the core of their approach. The plan is open to all Malaysians and is built on the ethical, community-focused principles of Shariah, offering coverage that welcomes both Muslim and non-Muslim employees without exception.The organisation has also invested in ensuring users fully understand what they are signing up for. OUCH! offers live onboarding sessions, in-app tools such as contribution estimators, and clear, jargon-free educational materials. Employees can access their benefits, update their personal details, assign beneficiaries, and manage their certificates through a single intuitive platform. The company’s model also supports BNM’s Digital Insurance and Takaful Operator (DITO) framework and its Financial Inclusion Blueprint 2022–2026, both of which advocate for more accessible financial services for underserved groups.

“We built this plan because we saw a clear gap in how SMEs could provide real, sustainable welfare to their employees,” said Shazy Noorazman, Chief Executive Officer of OUCH!. “We’ve removed the middlemen, the long fine print and the financial complexity. What’s left is a tool that helps businesses show their people they matter—not just in words, but in action.”

Shazy emphasised that while Pusara Pro is already making a difference, much of its potential remains untapped. OUCH!’s goal is to see more SMEs adopt this model, so that basic protection becomes the norm rather than a rare perk reserved for large corporations. The company envisions a future where SMEs of all sizes, including those in informal sectors, routinely offer essential protection to their workers through seamless, tech-enabled platforms.

Discussions are also underway to integrate OUCH!’s offering into Malaysia’s national social protection frameworks, creating even greater synergy between private innovation and public policy. By aligning with government initiatives, OUCH! hopes to amplify its reach and contribute to a more comprehensive safety net for all Malaysians.