SYARIKAT TAKAFUL MALAYSIA BERHAD

UNAUDITED CONSOLIDATED INCOME STATEMENT
FOR THE SECOND QUARTER ENDED 31 DECEMBER 1999

	SECOND QUARTER        		CUMULATIVE QUARTER		
	SECOND CURRENT	PRECEDING YEAR	CURRENT	PRECEDING YEAR	
	YEAR	CORRESPONDING	YEAR	CORRESPONDING	
	QUARTER	QUARTER	TO DATE	PERIOD	
	31.12.1999	31.12.1998	31.12.1999	31.12.1998	
	RM'000	RM'000	RM'000	RM'000	

1 (a)  Turnover	                        9,400 		              21,750 	                       22,163 	
					
   (b)  Investment income	                        5,829 		                9,404 	                       11,745 	
					
   (c)  Other income including rental income	                           848 		                1,969 	                         4,873 	
					
2 (a)  Operating profit / (loss) before	                        1,768 		                4,301 	                       10,343 	
         interest on borrowings, depreciation and					
         amortisation, exceptional items, income tax,					
         minority interests and extraordinary items					
					
   (b)  Less interest on borrowings	                             -   		                      -   	                              -   	
					
   (c)  Less depreciation and amortisation	                         (603)		              (1,102)	                       (1,295)	
					
   (d)  Exceptional items	                             -   		                      -   	                             - 	
					
   (e)  Operating profit / (loss) after	                        1,165 		                3,199 	                         9,048 	
         interest on borrowings, depreciation and 					
         amortisation and exceptional items but					
         before income tax, minority interests and					
         extraordinary items					
					
   (f)  Share in the results of associated companies	                           (21)		                   (34)	                              -   	
					
   (g)  Profit / (loss) before taxation, minority 	                        1,144 		                3,165 	                         9,048 	
         interests and extraordinary items					
					
   (h)  Taxation/Zakat	                             63 		                 (244)	                          (398)	
					
   (i)  (i)  Profit / (loss) after taxation 	                        1,207 		                2,921 	                         8,650 	
             before deducting minority interests 					
       (ii)  Less minority interests 	                         (113)		                 (117)	                          (193)	
					
   (j)  Profit / (loss) after taxation attributable to	                        1,094 		                2,804 	                         8,457 	
        members of the company					
					
   (k) (i)  Extraordinary items	                             -   		                      -   	                              -   	
       (ii)  Less minority interests 	                             -   		                      -   	                              -   	
       (iii) Extraordinary items attributable to 	                             -   		                      -   	                              -   	
             members of the company					
					
   (l) Profit / (loss) after taxation and extraordinary 	                        1,094 		                2,804 	                         8,457 	
items attributable to members of the company					

3 (a) Earnings per share based on 2(j) above after					
        deducting any provision for preference 					
        dividends, if any :-					
 					
       (i) Basic (based on 55,000,000	                          1.99 		                  5.10 	                         15.38 	
           ordinary shares-sen)					
					
       (ii) Fully diluted (based on 59,500,000	                          1.84 		                  4.71 	                         14.21 	
           ordinary shares-sen)					

Note:- There is no preceding year corresponding result for the second quarter as no quarterly report was prepared					
          by Takaful Malaysia during last financial year.					

SYARIKAT TAKAFUL MALAYSIA BERHAD								
CONSOLIDATED BALANCE SHEET FOR THE SECOND QUARTER ENDED 31 						DECEMBER 1999		
								
				UNAUDITED		AUDITED		
				AS AT 		AS AT 		
				END OF
CURRENT		PRECEDING FINANCIAL		
				QUARTER		YEAR ENDED		
				31.12.1999		30.06.1999		
				RM'000		RM'000		
CURRENT ASSETS								
Cash and Bank Balances				(2,992)		                       2,942 		
Due from Related Company				                 -		                            -   		
Short Term Investments				252,781 		                   269,503 		
Other Debtors				10,090 		                     10,531 		
				               259,879 		                   282,976 		
								
CURRENT LIABILITIES								
Provision for Claims				80,187 		                     76,712 		
Other Creditors				24,196 		                     26,100 		
Due to Fellow Subsidiaries				265 		                          331 		
Due to Retakaful				6,393 		                     14,418 		
Provision for Taxation				2,705 		                       3,706 		
Proposed Dividend				                       -   		                       2,970 		
				               113,746 		                   124,237 		
								
NET CURRENT ASSETS				146,133 		                   158,739 		
FINANCING RECEIVABLES				74,711 		                     66,152 		
INVESTMENTS				177,672 		                   127,469 		
INVESTMENT IN AN								
   ASSOCIATED COMPANY				276 		                          309 		
FIXED ASSETS				121,848 		                   119,663 		
DUE TO A FELLOW SUBSIDIARY				(252)		                         (224)		
				               520,388 		                   472,108 		
								
Financed by:								
								
SHAREHOLDERS' FUNDS								
								
Share Capital				55,000 		                     55,000 		
Reserves				41,332 		                     38,527 		
				                 96,332 		                     93,527 		
MINORITY INTEREST				3,846 		                       3,730 		
FAMILY TAKAFUL FUND				350,342 		                   302,732 		
GENERAL TAKAFUL FUND				47,622 		                     51,772 		
GROUP FAMILY TAKAFUL FUND				21,430 		                     19,622 		
GENERAL RETAKAFUL FUND				29 		                           25 		
ATG RETAKAFUL FUND				709 		                          681 		
FAMILY RETAKAFUL FUND				78 		                           19 		
				               520,388 		                   472,108 		
								
NET TANGIBLE ASSETS PER SHARE(RM)				                    1.75 		                         1.70 		

Notes	
			
1	Accounting Policies		
The quarterly financial statements are prepared using the same accounting policies and methods of  computation with the recent annual financial statement for the year ended 30 June 1999.		

2	Exceptional Items		
There were no exceptional items for the current financial year to date. Consistent with the policies and practice adopted during last financial year, the provision or write-back of provision for diminution in value of quoted shares and unit trusts are carried out annually at the end of the financial  year.		

3	Extraordinary Items		
	There were no extraordinary items for the current financial year to date.		

4	Taxation		
There were no deferred taxation and adjustments for under or over provision in respect of prior years for the current financial year to date.		

5	Pre-acquisition Profits		
	There were no pre-acquisition profits for the current financial year to date.		

6	Profit on Sale of Investments and/or Properties		
	The profit arising from sale of investment for the current financial year to date is RM 1.171 million.		

7	Purchase or Disposal of Quoted Securities		
The disclosure is exempted by the Exchange since the principal activity of Takaful Malaysia is family and general takaful businesses (Islamic insurance).		

8	Changes in Composition of the Company/Group		
	There were no changes in the composition of the Group for the current financial year to date.		

9	Status of Corporate Proposals		
	There were no corporate proposals announced but not completed as at the date of this announcement.		
			
10	Seasonal or Cyclical Factor		
	The Group's operations are not materially affected by seasonal or cyclical factors.		

11	Issuance and Repayment of Debt and Equity Securities		
There were no issuances and repayment of debt and equity securities, share buy-backs, share cancellations, shares held as treasury shares and resale of treasury shares for the current financial year to date.		

12	Group Borrowings and Debt Securities		
	There were no Group borrowings and debt securities as at 31 December 1999.		

13	Contingent Liabilities		
There were no contingent liabilities as at the date of this announcement other than those liabilities arising from contract of takaful (Islamic insurance).		

14	Off Balance Sheet Financial Instruments		
	There were no financial instrument contract with off balance sheet risk as at the date of this announcement.		
			
15	Material Litigation		
	There were no material litigation pending  as at the date of this announcement.		

16	      Segmental Reporting							

Profit/(Loss) before		
Gross Assets	
			Turnover		zakat and taxation		Employed	
			RM'000		  RM'000		RM'000	
			Cummulative		      Cummulative		Cummulative	
			Quarter		    Quarter		Quarter	
	       Within							
	          Malaysia		        33,123 		          3,199 		      634,110 	

	       Outside 							
	          Malaysia		               -   		             (34)		            276 	

								
			        33,123 		          3,165 		      634,386 	

17	Material Changes in the Quarterly Results Compared to the Results of the Preceding Quarter
The profit before taxation and minority interests for the quarter under review is 43.4% lower compared with the preceding quarter due to a reduction in turnover of 5.7% and an increase in operating cost of 10.5%.

18	Review of the Performance
For the second quarter under review, the Group recorded a relatively lower turnover of RM 16.077  million due to mainly lower collection of general takaful contribution.Consequently, due to lower collection of general takaful contribution and an increase in operating cost due to mainly higher marketing and promotional expenses, the Group also recorded a lower profit before taxation and minority interests of RM 1.14 million.

19	Current Year Prospects
In line with the Malaysian's economic recovery, the Group expects that it would be able to consolidate itself during the current financial year. However, the overall easing of the Islamic money market/financial sector will to a certain extent affect the turnover and profitability of the Group.

20	Dividends
	No interim dividend has been recommended/declared for the current financial year to date.

21	Year 2000 Status
	The Group experienced smooth transition during Year 2000 rollover period.

	
By Order of the Board
	MOHAMED ARIF BIN ABDUL RASHID
	MOHAMAD ASRI BIN HAJI YUSOFF
	Company Secretaries
	Kuala Lumpur, 24 February 2000