Junaidah Abu SemanNurul Ain Izzati Mohd AsriMuhammad Auza’eim Mohd SaupiKhairun Nashuha binti KamaruzamanNur Aleeya Athiqah binti Hairol NizalNur Iffah Najwa Mohd Noor Azelee2025-10-082025-10-082025Junaidah Abu Seman, Nurul Ain Izzati Mohd Asri, Muhammad Auza’eim Mohd Saupi, Khairun Nashuha binti Kamaruzaman, Nur Aleeya Athiqah binti Hairol Nizal & Nur Iffah Najwa Mohd Noor Azelee. (2025). Surplus Sharing Practices In Takaful: Lessons From Malaysia. Seminar Antarabangsa Islam Dan Sains 2025 (SAIS 2025), 394–412. https://drive.google.com/drive/folders/1SN6JaJp4OjO-505O0GGa06Ro1JnzHAeH3083-872Xhttps://drive.google.com/drive/folders/1SN6JaJp4OjO-505O0GGa06Ro1JnzHAeHhttps://oarep.usim.edu.my/handle/123456789/27701Seminar Antarabangsa Islam dan Sains 2025 (SAIS 2025) / “Transcending Generations: Naqli and Aqli asPillars of Ummah Transformation”. Editor: Siti Rubaini Mat , Umi Hamidaton Mohd Soffian Lee, Nur Ilyana Ismarau Tajuddin, Noorfajri Ismail, Azman Ab Rahman 9 September 2024 Anjuran: Persatuan Kakitangan Akademik Universiti Sains Islam Malaysia (PKAUSIM),Fakulti Syariah dan Undang-Undang (FSU), Institut Fatwa dan Halal (iFFAH), USIMTakaful, the Islamic alternative to insurance, generates surplus when contributions exceed claims, reserves, and expenses. Since participants own the fund while operators act as managers, surplus distribution plays a key role in ensuring fairness, transparency, and sustainability. This paper examines the surplus sharing practices of Takaful operators in Malaysia, focusing on the mechanisms, principles, and Shariah contracts guiding distribution. The study employs a qualitative approach using content analysis. Data sources include published reports, regulatory guidelines, and industry disclosures concerning surplus allocation and sharing. The results reveal variations in surplus distribution across operators in terms of frequency, modes of allocation, and reliance on Shariah contracts. Despite positive efforts, gaps remain in disclosure and transparency, raising concerns about consistency and accountability. Strengthening disclosure practices, standardizing mechanisms, and enhancing Shariah governance are crucial to reinforce participants’ trust and support the sustainable growth of Malaysia’s Takaful industry.en-USTakafulsurplus sharingtransparencydisclosure .text::conference output::conference proceedings::conference paper394412