Deposit insurance amendment bill passes in Dewan Rakyat

KUALA LUMPUR: The Malaysia Deposit Insurance Corporation (Amendment) Bill 2021 has been passed in the Dewan Rakyat.

The Bill, aimed at better managing insurance deposits and protection for tafakul insurance, was passed by a voice vote after it was tabled for its second reading by Deputy Finance Minister II Yamani Hafez Musa.

"The aim is also to provide incentive for appropriate risk management in the financial system while promoting or contributing to the stabilisation of that system," he said on Tuesday (Oct 26).

The Bill aimed to introduce Section 47A of the Malaysia Deposit Insurance Corporation Act 2011 (Act 720) (PIDM Act), which provided for the calculation of the first premium in respect of new deposit-taking members.

According to Section 47A(1), the first premium in respect of new deposit-taking members should be calculated on the basis as may be prescribed by the Minister.

The bill also aimed to empower the Minister to prescribe the base for calculation of annual premium to be paid by a deposit-taking member.

The Bill was tabled for its first reading on Sept 23 this year.