Malaysian Central Bank Governor Zeti Akhtar To Leave Office

KUALA LUMPUR • Malaysia’s outgoing central bank governor, Dr Zeti Akhtar Aziz, has said that politicians cannot be heading the institution, as it must be free of political agenda.

After 16 years at the helm, Tan Sri Zeti will end her stint as a respected central banker in April, with one of four prominent men expected to replace her.

Bank Negara Malaysia has been in the spotlight in the past year for its involvement in the investigations into state fund 1Malaysia Development Berhad (1MDB).

“Every country needs an organisation like the central bank that does not have any political agenda. It should remain focused on ensuring macroeconomic, financial and economic stability,” Dr Zeti, 68, said on Wednesday.

She said the central bank had always been treated with respect and she expected this to continue, so that “economic and financial policies would be directed to achieve what is in the best interest of the country”.

She said the process to appoint her successor was in place, and there was no request for her to stay on.

“Certainly, the next governor must have the relevant background and ability, especially at a time like this, so that the transition can be managed well. Individuals come and go,” she said, adding that she planned to take some time off and then start writing.

Like her, none of her six predecessors was politically active.

An economist by training, Dr Zeti was appointed governor in May 2000, when Malaysia was recovering from its worst-ever economic crisis. In her 16 years as governor, she has nurtured Bank Negara into an institution that is well respected in the international community.

Prime Minister Najib Razak, when asked about her successor, yesterday said that the government will decide on this soon, Bernama news agency reported.

At least four names are being bandied about, including that of Bank Negara deputy governor Muhammad Ibrahim. The others talked about are former Bank Negara assistant governor Awang Adek Hussin, who is now Malaysia’s Ambassador to the United States; Minister in the Prime Minister’s Department Abdul Wahid Omar; and Ministry of Finance secretary-general Mohd Irwan Serigar Abdullah.

Touching on the central bank as an institution, Dr Zeti, who is Malaysia’s longest-serving central bank governor, said it had become a strong and resilient organisation.

“I do believe the central bank has become a solid organisation. It has institutional strength, resilience and is founded on legal legislation.”

Originally published on www.straitstimes.com