Amendment Bill passed in parliament

The Dewan Rakyat  (Parliament) recently passed the Malaysia Deposit Insurance Corporation (Amendment) Bill 2021, which aims to improve the governance of the body.

The bill, which was approved after the third reading, was to amend the Malaysia Deposit Insurance Corporation 2011 (Act 720) (PIDM Act) by inserting new provisions.

Earlier, deputy finance minister II Yamani Hafez Musa said the objective of PIDM establishment is to govern the deposit insurance system, as well as takaful and insurance benefits protection system under Act 720.

“It is also to provide insurance against the loss, part or all, of the deposit for which the depositor member is liable and to provide protection against the loss, part or all, of the takaful or insurance benefits for which the insured member is liable.

“The objective is also to provide incentives for proper risk management in the financial system and to promote or contribute to the stability of the financial system,” he said.

In the winding-up session, he said the amendment bill would, among others, improve the efficiency of PIDM corporate governance and strengthen PIDM’s operational readiness and efficiency in performing its functions and obligations to promote the stability of the Malaysian financial system.

“This amendment provides for the assessment of premiums and levies for member institutions involved in amalgamation,” he said.

Yamani Hafez said if a member institution were to merge with another, the merged entity would be assessed based on the risk profile of the merged member institution.