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IFSA 2013 (Article 138) also stipulates the BNM can take the initiative of the opening up of a
financial ombudsman scheme to ensure the fair and effective dealing of complaints and
resolution of disputes. Accordingly, the Ministry of Finance on the recommendation of BNM
issued the Islamic Financial Services (Financial Ombudsman Scheme) Regulations 2015 to
initiate the Ombudsman Scheme for the consumers of the Islamic financial sector (BNM 2015).
BNM takes an active role in enhancing financial literacy in Malaysia. Other than setting the
goals in its strategic documents, BNM has taken various steps implement the strategy. The
initiatives include integrating financial education in the school curriculum, establishing
financial clubs in schools and adult education by Agensi Kaunseling dan Pengurusan Kredit (Ali
2013). Furthermore, different webpages are developed that promote financial literacy and
education. The websites include which has information on
Islamic banking, which has sections on takaful, and
hich provides information on financial planning for children and
the youth.
Deposit Insurance
The Financial Sector Master Plan 2001-2011 of Malaysia identified the establishment of a
deposit insurance scheme as a safety-net for depositors under the broader framework of
consumer protection (BNM 2001: 17). The Malaysia Deposit Insurance Corporation Act 2005
initiated the deposit insurance scheme in Malaysia. The Act established the Malaysia Deposit
Insurance Corporation (Perbadanan Insurans Deposit Malaysia PIDM) to administer the
system of protecting deposits of both conventional and Islamic banks (BNM 2012). To further
enhance the stability of the financial system, the Act of 2005 was superseded by the Malaysia
Deposit Insurance Corporation Act 2011 to widen the safety net extending the protection and
insurance coverage beyond deposits.
PIDM provides deposit insurance to depositors of both conventional and Islamic banks. For the
latter, it uses a contract of guarantee with a fee that is approved by the SAC of BNM (IADI 2010:
14). Before the enactment of IFSA 2013, Islamic demand, savings and investment deposits
were covered by PIDM. However, the IFSA 2013 distinguishes between deposits and
investment accounts with the latter having the feature that it bears the risks of investments.
One of the implications of this new classification is that while deposits are protected by the
deposit insurance scheme, the investment accounts are not covered (CIBAFI et. al 2015: 163).
4.4.7. Human Capital & Knowledge Development Framework
In line with the Financial Sector Masterplan 2001, Malaysia has invested heavily in developing
talent and professionalism for the financial sector in general and the Islamic financial sector in
particular. The new strategy document, the Financial Sector Blueprint 2011-2020 identifies
talent development to support a more dynamic financial sector to be a key enabler of the
development of the financial sector in the country (BNM 2011).
Under the leadership of BNM, various educational and training institutions have been
established to cater to the different needs of the financial sector. The initiatives include the
establishment of the International Centre for Leadership in Finance (ICLIF) in 2003 to train
senior managers in strategic and leadership development and Financial Institutions Directors
Education Programme (FIDE) in 2008 to train members of the board of directors in