Takaful Malaysia Syariah department head Mohd Fauzi Mustaffa today withdrew a inflammatory circular directing staff not to convey greetings to Hindu clients during religious festivals.

In a statement faxed by the chief executive officer's office, Mohd Fauzi reiterated that the contents of the circular represented his personal opinion and not those of the Islamic insurance company.

"With reference to the views of the Perak Mufti and the Selangor Mufti reported in the New Straits Times dated Oct 15, I sincerely apologise to all parties if the contents of the email have caused hurt and offence. With this, I retract it," said the statement signed by Mohd Fauzi.

The statement came an hour after several NGO representatives led by DAP secretary-general Lim Guan Eng held a meeting this afternoon with Takaful CEO Mohd Azmi Abu Bakar.

Contacted later, Lim said the retraction was satisfactory as it has met DAP's demands.

"Since Fauzi had apologised for the email and retracted it, I think we should forgive him and hope he will not repeat this. It is also a reminder to others to be sensitive to other religions," said Lim.

On Oct 11, media reports highlighted the email from Mohd Fauzi, which said Hindu festivals involved the worship of deities and greeting Hindus was therefore akin to practising polytheism, which goes against the tenets of Islam.

He added that Takaful's corporate culture was rooted in the Syariah, which forbids greetings involving gods in Hinduism and other religions.

"Muslims who have inadvertently wished Hindus Happy Deepavali, Happy Durga Pooja or Happy Lakhshmi Pooja must immediately repent and not repeat it in future," he said in the email.

Malaysia Hindu Sangam president A Vaithilingam also accepted the apology, but said the duration taken for Mohd Fauzi to retract the circular was "regretable".

"It is hoped that this incident will be a clear indication to all concerned, regardless of religion, that they have to be very careful when making statements or comments about other religions," he said when contacted.

Vaithilingam had earlier called on Takaful to sack Mohd Fauzi.

The circular had come under fire from many quarters including MIC president S Samy Vellu, Information Minister Zainuddin Maidin and Minister in the Prime Minister's Department Dr Abdullah Md Zin.

Takaful had ealier sent out a disclaimer to disassociate itself from the contents of the email.

Earlier in the day about 150 demonstrators protested outside Takaful Malaysia's headquarters against the circular and urged Takaful to take action against Mohd Fauzi.