With the implementation for the Government Deposit Guarantee on 16 October 2008, PIDM now fully protects all ringgit and foreign currency deposits with commercial, Islamic and investment banks, international Islamic banks and deposit-taking development financial institutions regulated by Bank Negara Malaysia. This is a pre-emptive and precautionary measure, consistent with measures taken by neighbouring jurisdictions, to maintain financial stability. Malaysian banking system is well capitalised and profitable, and it is unlikely that the Guarantee will be called upon.

The Government Deposit Guarantee provides for additional depositor protection over and above that provided by PIDM, and will be in place until 31 December 2010. All types of depositors –  whether businesses or individuals holding conventional or Islamic deposits – are fully protected on their eligible deposits.

 
Types of deposits and instruments protected
Deposits that are eligible for protection under the Government Deposit Guarantee include:
• Fixed deposits, current accounts, saving accounts, joint accounts and trust accounts
• Islamic deposits
• Principal guaranteed conventional structured deposits
• Foreign currency deposits
• Negotiable instruments of deposits held by non-banks

Types of deposits and instruments NOT protected
Certain deposits and instruments are not covered under the Government Deposit Guarantee. These are:
• Conventional structured products that are not principal guaranteed
• Deposits payable outside Malaysia
• Inter-bank money market placements
• Negotiable instruments of deposits held by banks
• Repurchase agreements