Malaysia

Christopher Lee, Partner, (christopher.lee@wongpartners.com) and Chu Kah Chin, Associate, (kah.chin.chu@wongpartners.com) Wong & Partners

The Malaysia Deposit Insurance Corporation Act 2005

On 15 August 2005, the Malaysia Deposit Insurance Corporation Act 2005 (with the exception of certain sections) came into force. The Act essentially provides for the establishment of a deposit insurance corporation in Malaysia (Corporation) having the primary objectives of inter alia administering a deposit insurance scheme, insuring against the loss of part or all deposits of any member financial institution and providing incentives for sound risk management in the financial system whilst contributing to the overall stability thereof.