Kuala Lumpur, 31 January 2020:
Perbadanan Insurans Deposit Malaysia (PIDM) issued its ‘Summary of the Corporate Plan 2020 – 2022’ here today.
PIDM’s 3-year plan is aligned with its long–term strategic priorities, which are:
- resolution planning and intervention and failure resolution preparedness;
- strengthening trust and confidence among its stakeholders; and
- preparing its workforce for sustainability and growth.
Rafiz Azuan Abdullah, Chief Executive Officer of PIDM, said that PIDM is always looking at ways of improving its reimbursement systems and processes as part of its efforts towards building public confidence.
“For the planning period, we plan to complete our initiative to offer depositors yet another option for prompt reimbursement should the need arise. This means leveraging on today’s available technological capabilities and electronic payment mechanisms,” he said.
Resolution planning is also another key aspect of readiness for PIDM, aimed at heightening the financial system's resilience. Resolution planning involves, for example, obtaining information from member institutions and identifying where member institutions have functions that are critical to the financial markets and the real economy. This way, PIDM and other safety net players would be in a better position to address how they would respond during a crisis.
“Continuous engagements are being carried out to prepare PIDM’s member banks for the phased resolution plan roll-out, expected to commence after 2022,” said Rafiz.
PIDM notes that public awareness about PIDM and its protection systems is vital in promoting confidence and trust in the financial system. PIDM will continue to execute public relations and social media campaigns to educate the public and improve their awareness of PIDM's protection systems.
PIDM is a statutory body that provides protection against the loss of deposits and insurance or takaful benefits with its member institutions in the event of a member institution failure. Member institutions are required to pay annual premiums or levies to PIDM, which go towards its protection funds. These funds will be used to reimburse eligible depositors or make payments against eligible takaful and insurance claims should a member institution fail.
For 2020, PIDM has budgeted to receive income of RM642 million, and operating expenditures of RM105 million, with a projected net surplus of RM536 million. The operating expenditures will support the execution of PIDM's strategic priorities for 2020.
The Summary of the Corporate Plan 2020 - 2022 is available at the PIDM website (www.pidm.gov.my
) in Bahasa Malaysia and English.
PIDM is a statutory body that provides protection against the loss of deposits and insurance or takaful benefits with its member institutions in the event of a failure. PIDM is entirely funded by premiums or levies assessed on its member institutions and does not receive public funds to operate. It has the means under the PIDM Act to borrow or raise such funds as may be needed to fulfil its statutory obligations to protect financial consumers of its member institutions. As an integral part of the national financial safety net, PIDM promotes and contributes to the stability of the financial system.
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Masami Mustaza, Manager, Communications and Public Affairs Division
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