Kuala Lumpur, 12 May 2011: Perbadanan Insurans Deposit Malaysia (PIDM) today reported that it successfully implemented its planned deliverables for 2010 within budget, in addition to completing new key initiatives to bring into effect policy proposals for enhanced financial consumer protection.
“I am pleased to report that PIDM implemented our Board-approved key initiatives planned for the year as set out in our published Corporate Plan 2010 and within the approved financial plan,” said Jean Pierre Sabourin, Chief Executive Officer of PIDM, at the release of the Corporation’s Annual Report 2010.
“Over and above these planned deliverables, PIDM also implemented key policy proposals identified under the Government’s Enhanced Financial Consumer Protection Package through legislation. This included the development of the new Malaysia Deposit Insurance Corporation Act 2011 (PIDM Act) to replace the earlier Act and the framework to administer the Takaful and Insurance Benefits Protection System (TIPS),” he added.
Key features of the new PIDM Act included the expansion of PIDM’s mandate to include the administration of TIPS, the prescription of a deposit insurance limit by the Minister of Finance on PIDM’s recommendation, as well as enhanced resolution tools to resolve non-viable member institutions. In the year, PIDM developed the framework to administer TIPS, including the interim risk assessment and monitoring methodology and framework, recommended premium rates to be assessed against insurance companies and takaful operators, as well as drafted guidelines to facilitate the submission of returns on premium calculations.
“With the new legislation, PIDM is now an integrated financial consumer protection agency for both depositors and policy owners, administering both the national deposit insurance system and insurance compensation system,” Sabourin said.
During 2010, PIDM also continued to focus on key areas including enhancing operational effectiveness and readiness to manage intervention and failure resolution of member institutions, intensifying risk assessment and monitoring activities, enhancing its governance practices including risk management and internal control, raising public awareness on deposit insurance and PIDM, as well as embarking on initiatives to develop its talents in core competencies.
For the financial year ended 31 December 2010, PIDM recorded total revenues of RM115.0 million, comprising RM105.7 million in premiums and RM9.3 million in investment income. Operating expenditures totalled RM54.2 million resulting in a net surplus of RM60.8 million. PIDM’s total Deposit Insurance Funds as at the end of 2010 amounted to RM430.7 million, comprising the Conventional Deposit Insurance Fund of RM374.6 million and the Islamic Deposit Insurance Fund of RM56.1 million.
For the 2011 – 2013 planning period, PIDM will continue to focus on key efforts to support the Corporation’s state of readiness, including building its capacity and capability in terms of operational readiness, improving operational effectiveness, promoting public awareness including enhancing education initiatives, and putting in place the required infrastructure, systems and policies and resources to effectively administer TIPS.
The Annual Report 2010 is available at the PIDM website (www.pidm.gov.my) in four languages – Bahasa Malaysia, English, Chinese and Tamil.
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For more information about this press release, kindly contact:
Sarina Ariffin, Manager, Communications and Public Affairs Division
(Tel: 03-2173 7457; Email: sarina@pidm.gov.my)
Yeap Boo Yam, Editorial Manager, Communications and Public Affairs Division(Tel: 03-2173 7465; Email: booyamyeap@pidm.gov.my)
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ABOUT PIDM
PIDM administers the statutory Deposit Insurance System and the Takaful and Insurance Benefits Protection System in Malaysia.
For further information:
- Call 1-800-88-1266, 8.30am to 5.30pm on Monday – Friday (excluding public holidays)
- Email: info@pidm.gov.my
- Visit: www.pidm.gov.my
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