Banks and e-wallets work differently. Banks must have PIDM protection because they can use your deposits for various activities such as loans and investments. If something goes wrong with the bank, PIDM ensures you get your money back (up to RM250,000 per depositor, per bank). That’s why the bank’s financial health matters.
On the other hand, e-wallets like TNG eWallet don’t use your money for operations or investments. Your money stays safe in trustee accounts, and TNG eWallet only helps you make payments that you approve. No matter what happens to the e-wallet company, your money is still available when you need it. Since e-wallets don’t take the same risks as banks, PIDM protection isn’t required.