PIDM releases 20182020 corporate plan

KUALA LUMPUR: Malaysia Deposit Insurance Corporation (PIDM) released its Corporate Plan 2018 – 2020 Summary yesterday.

As an integral part of the Malaysian financial safety net system, PIDM has been mandated to protect the interest of depositors and takaful and insurance policy owners against the failure of any member institution, and to contribute to or promote financial system stability, it said in a statement yesterday.

The three-year plan had set out PIDM’s three strategic priorities, namely to implement initiatives to strengthen the readiness towards an effective resolution regime for Malaysia, develop and prepare its human capital for long term sustainability, and strengthen engagement with key stakeholders, including the public and member institutions.

Chief executive officer, Rafiz Azuan Abdullah said changes in its operating environment required PIDM to ensure that the company can keep pace and be in a

Our strategic priorities support this aim, and an effective resolution regime. Rafiz Azuan Abdullah, PIDM chief executive officer

state of readiness to properly support financial system stability.

“Our strategic priorities support this aim, and an effective resolution regime,” he said, adding, one of its key objectives was to ensure that any issues involving member institutions would be resolved in an orderly manner, without any systemic disruption to the financial system.

“On resolution planning, there will be more engagements through industry consultations, including engagements with pilot institutions to refine PIDM’s resolution planning framework,” Rafiz Azuan added.

He said PIDM would continue to engage with stakeholders to enhance the public’s awareness about its role and protection system through financial education, public engagement programmes and advertising campaigns.

The corporation had budgeted to receive an income of RM575 million and operating expenditure of RM120 million with a projected net surplus of RM455 million.

By end- 2018, it projected that the surplus in the deposit insurance funds ( DIFs) would amount to RM2.38 billion and the Takaful and insurance benefits protection funds ( TIPFs) at RM1.66 billion.

“The DIFs and TIPFs are accumulated reserves to cover losses that may arise from providing protection to depositors and policy owners respectively,” it said.

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. — Bernama