BNM governor offers to resign, say sources

KUALA LUMPUR: Bank Negara Malaysia (BNM) governor Tan Sri Muhammad Ibrahim has offered to resign from his post two years into his term, said sources familiar with the matter, who declined to be identified as the discussions are confidential.

The move comes less than a month after Prime Minister Tun Dr Mahathir Mohamad won a surprise victory in the 14th General Election and newly-installed Finance Minister Lim Guan Eng raised questions about the central bank’s purchase of land from the previous administration.

It is unclear what the government’s response was to his resignation offer.

A BNM spokesman yesterday declined to comment on whether the governor had offered to resign. An official at the Finance Ministry also declined to comment.

Muhammad did not respond to calls and text messages to his mobile phone and office.

Meanwhile, Reuters reported that former BNM deputy governor Datuk Nor Shamsiah Mohd Yunus is among candidates being considered to succeed Muhammad if he resigns.

“There are talks being arranged with Nor Shamsiah,” said one government source, speaking on condition of anonymity.

However, no decision has yet been made.

Nor Shamsiah left BNM after her term ended in November 2016.

Last month, Lim said Datuk Seri Najib Razak’s administration had used money raised from a land sale to the central bank — valued at about US$520 million (RM2 billion) — to pay off some 1Malaysia Development Bhd debts, a state investment fund that had been mired in a corruption scandal.

BNM said the purchase was transacted at fair value and complied with all governance requirements and relevant laws.

Muhammad was promoted to lead the central bank for a fiveyear term in May 2016, when Tan Sri Dr Zeti Akhtar Aziz, who was appointed by Dr Mahathir, stepped down after 16 years of leadership. He had risen through the ranks since joining BNM in 1984 and was endorsed by Zeti, when she left, as a successor able to provide policy stability.

Born in 1960 and with a master’s degree from Harvard University, Muhammad has had to navigate volatile financial markets since he took the helm at BNM.

He cut interest rates in a surprise move shortly after taking office and implemented curbs on foreign exchange trading that has drawn criticism from currency traders.

The economy has rebounded since then, with the currency among the top performers in emerging markets globally this year.