October 18th, 2008 
DianaFinally the Malaysian government followed Singapore’s footsteps in guaranteeing all the people’s money in bank deposits and not only up to RM60,000 as stipulated earlier. There is now 100% bank guarantee. This is a relief of local folks here and also for myself. When Malaysia Deposit Insurance Corporation, (PIDM) decided to guarantee 100% of our deposit accounts up to year 2010, I was elated because before this I was contemplating of transferring RM60,000 from my Public bank to another bank. Thank goodness I was not in a hurry and waited till now. My friend went to Public bank yesterday and saw newspaper cuttings of the government announcement being pasted on the wall for obvious reasons – prevent depositors from taking out chunks of RM60,000 and transferring to other banks.
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Hi,
Nice blog Diana.
Actually the main reason banks in Malaysia insured only up to 60k was to avoid paying the insurance premium. When I was involved in a discussion to publicize the insurance coverage, I had mentioned that by putting a cap (limit) might defame the bank’s own credibility (in customers perspectives) in securing its customers deposits.
Who am I to voice out that
Thanks Abang Long,
I hope to increase the traffic in this blog and security remains an issue. Good to hear that you are part of the decision making team with regards to PIDM, so that 100% of our bank deposits are guaranteed and not only up to RM60k. At least all of our monies are intact till year 2010.
Nice article. Thanks.
Eugene
A guarantee is only as good as the guarantor itself. If and when Banks in Malaysia are seriously sick like those in USA , the guarantor itself will be acutely infected thus it may become insolvent event before the banks. The fact is most banks own most insurance companies in Malaysia. The issue is only academic if our economy and financial position are strong and solid as advocated by the Government. I doubt. Buy a bigger pillow case may seem to be the only practical way to ensure sweet dreams go on nightly.
farouq: agreed. Hope we will have bigger pillow cases for perpectual sweet dreams.
The PM, PM in waiting, Bank Negara G’nor, etc etc have all given you their personal assurances that your money would be safe and growing. Truly Malaysia Boleh spirit. The whole world is worry and in search of a way to reduce the impact except Malaysia is still sound and will remain to be so , according to the above mentioned persons. The first basic rule in world economy is , like it or not, ” when the Americans sneeze , the whole world catch a cold”. The Americans are having more deadly flu than the bird flu now. My hair turned grey , then snow white and now bare-top trying to understand our leaders’ economy theories.