Annual Report 2024

Ensuring effective execution of intervention or resolution actions by:

a. continuously enhancing PIDM’s internal readiness in relation to intervention and resolution;
b. executing resolution plans effectively and ensuring robust crisis coordination actions among the financial safety net (FSN) players and service providers;
c. ensuring member institutions are clear about PIDM’s regulatory expectations to support the implementation of PIDM’s resolution strategies; and
d. ensuring robust liquidity management plan that covers management of liquidity crisis before, during and after a Non-Viability Trigger event.

• Financial capital
• Human capital
• Intellectual capital
• Manufactured capital
• Social and relationship capital

• Insurance risk
• People risk
• Reputation risk
• Operational risk

KRA 1: (PIDM-Ready) – Enabling robust intervention and effective intervention and resolution actions by PIDM

KRA 2: (Industry-Ready) – Strengthening the resolvability of member institutions and enhancing readiness of service providers

KRA 3: (FSN-Ready) – Developing effective crisis management arrangements with and among FSN players

a. Ensuring the confidence of depositors and other financial consumers through comprehensive communication of PIDM’s mandate, our role, as well as administering an effective protection system.
b. Having comprehensive plans to communicate effectively before and during crisis situations to avert or mitigate panic behaviours.

• Financial capital
• Human capital
• Intellectual capital
• Social and relationship capital

• Reputation risk
• Insurance risk

KRA 4: (Public and Media-Ready) – Maintaining strong awareness, understanding and advocacy of PIDM among the public and media

KRA 5: : Enhancing the effectiveness and relevance of PIDM’s protection coverage and role as financial consumer protection authority

Enabling PIDM’s readiness to deliver our mandate effectively through:

a. effective employee engagement;
b. continuous upskilling for current and future needs;
c. cultivating a digital- and sustainability focused culture; and
d. succession planning and the sustainability of our workforce for the medium to long term.

• Financial capital
• Human capital
• Social and relationship capital

• People risk
• Operational risk

KRA 6: Ensuring strong talent and capabilities and strengthening PIDM’s culture

Addressing challenges brought by digital advances:

a. leveraging the exponential increase in computing power to enhance the efficiency and effectiveness of PIDM’s operations;
b. transition from cyber security to cyber resilience; and
c. enhancing collaboration and integration of processes, systems and people.

• Financial capital
• Human capital
• Manufactured capital

• Operational risk
• Reputation risk
• People risk
• Strategic risk

KRA 7: Modernising PIDM’s information technology infrastructure, processes and security to augment future readiness to deliver our mandate 

KRA 8: Leveraging applications and data analytics to improve PIDM’s resolution readiness

Commitment to transparency, accountability, integrity and sustainability, and ensuring effective strategic management and sound management practices.

• Financial capital
• Human capital
• Intellectual capital
• Manufactured capital
• Social and relationship capital

• Operational risk
• Reputation risk

KRA 9: Applying Environmental, Social and Governance (ESG) as the North Star in PIDM’s operations

• We reinforced our policies, systems, and frameworks to enhance our readiness in resolving troubled member institutions. The testing and refinement of our processes will culminate in a comprehensive simulation exercise in 2025.

• We organised the inaugural Muzakarah (intellectual discourse) themed “Transfer Mechanisms for Islamic Banks’ Business, Assets and Liabilities” for members of the banking industry’s Shariah fraternity, which provided a platform for participants to discuss and deliberate the development of Shariah-compliant resolution approaches.

• We shaped the narrative around resolution through the hosting of the second NRS themed “Building Collaborative Resolvability: From Policy to Practice”, bringing together 450 participants, including local and international experts, speakers and senior management leaders from financial institutions

• We hosted a meeting with relevant stakeholders as part of our continuous efforts to strengthen cross-border cooperation on resolution planning.

• We issued the Guidelines on the Differential Premium Systems (DPS) Framework for Deposit-Taking Members to support the implementation of the revised DPS Regulations, to provide a more holistic assessment of member banks while incentivising aspects of resolvability through the introduction of resolution-centric criteria.

• We strengthened our collaboration with other financial safety net players in 2024 to ensure better coordination in times of crisis and completed the interagency crisis preparedness binder, which outlines coordination arrangements among the relevant agencies during a crisis.

• We continued our financial literacy initiatives through the Sedia Payung Kewangan (SPK) campaign, digital platforms, and collaborations with the Financial Education Network (FEN).

• We maintained our public awareness at the targeted level of 75% and achieved an advocacy level of 56%, which exceeded our target of 50%.

• We expanded our outreach programme in 2024 to Sarawak in collaboration with several FEN partners, including engagements with the community and governmental agencies in Sarawak and organising a financial literacy challenge for students of higher learning institutions across East Malaysia.

• We also conducted a series of engagements with the media and welcomed their participation in the NRS 2024, ensuring that our role as a resolution authority is clearly communicated and well understood.

• We continued our active participation in the international for a, contributing to the global and regional discourse and leveraging on knowledge exchange on the topics of deposit insurance, insurance guarantee schemes, resolution and crisis management.

• PIDM was elected as the Vice-Chairperson for the Asia-Pacific Regional Committee for a three-year term, as well as a member of the International Association of Deposit Insurers’ Policy Council Committee. These leadership positions provide opportunities for PIDM to be involved in the policy formulation agenda.

• We enhanced our learning and development framework which focused on digital skills, resolution-related competencies, and leadership development, with initiatives such as the online learning series on cloud productivity platforms and the graduation of our second batch of Resolution Trainees.

• We strengthened collaboration and operational efficiency via the adoption of cloud-based solutions and a new human capital management system.

• We commenced the implementation of Platform-as-a-Service (PaaS) for our risk assessment and resolution-related corporate systems to enhance data fusion and collaboration and streamline intersystem integration We also implemented a data governance and management framework to enhance data capabilities and drive operational excellence.

• We benchmarked our information security management system against international best practices. In 2024, we achieved the ISO/IEC 27001:2022 certification, a culmination of our continuous efforts to enhance cyber resilience. PIDM has also been recognised by CyberSecurity Malaysia for compliance with the Information Security Management System (ISMS) standards.

• We continued to strengthen our cybersecurity with an annual cyber drill exercise as well as the implementation of cutting-edge cybersecurity controls, ensuring that our systems remain robust and resilient.

• We consolidated our operations under one roof at the AICB Building in 2024, enhancing cost efficiency with a significant reduction in floor space compared to our previous office. The renovation incorporated environmentally sustainable materials, aligning with our commitment to sustainability. Operating from a certified green building further reduces our overall carbon footprint by optimising energy consumption.

• We hosted our inaugural internal conference, focusing on ethics and corruption, cybersecurity, and Shariah governance. We also hosted a roundtable discussion which featured audit practitioners from other financial safety net players, to share and discuss the latest developments on risks and controls relating to cybersecurity and artificial intelligence.