SAY CHEESE, GOVERNOR
> Announcement of Zeti’s successor settles months of speculation over right candidate for coveted post
... Business journalists pose with Bank Negara deputy governor Datuk Muhammad Ibrahim for a ‘wefie’ in Kuala Lumpur yesterday following his appointment as governor. He starts his five-year term on May 1, with the departure of financial stalwart Tan Sri Zeti Akhtar Aziz.
PETALING JAYA: The appointment of Bank Negara Malaysia deputy governor Datuk Muhammad Ibrahim ( pix) as the next governor of the central bank has put to rest one uncertainty that has been dogging the financial market, according to analysts.
Prime Minister Datuk Seri Najib Abdul Razak yesterday announced Muhammad’s appointment to a fiveyear term, replacing long-time Bank Negara Malaysia (BNM) governor Tan Sri Dr Zeti Akhtar Aziz, who steps down at the end of the month.
News of his appointment, which was announced at about 2.30pm yesterday, managed to lift the local stock market, which had fallen 0.48% by mid-day. The market barometer, the FBM KLCI, recovered substantial ground to close at 1,692.34, down just 0.01% or 0.16 points.
Similarly, the ringgit reversed a drop after news of the appointment, gaining 0.36% to 3.9150 per US dollar.
There had been concerns that a political appointee would succeed Zeti.
“It’s a positive appointment. It has removed one element of uncertainty and we are now sure that there will be continuity in policy,” Hong Leong Investment Bank Research economist Sia Ket Ee told SunBiz.
He said the market was looking for clarity on the central bank’s direction after months of speculation regarding Zeti’s successor.
“My take is that the new governor is going to continue Zeti’s effective monetary policy-making,” he opined.
Sia added that the appointment made within the ranks of the central bank will ensure financial stability which, he said, is highly upheld by Muhammad himself.
“This is good news for the market that has been used to Zeti’s stewardship for many years. We can expect Muhammad advocating Zeti’s long-term monetary and financial stability as governor,” he said.
Meanwhile, M&A Securities Sdn Bhd head of research and equity analyst Rosnani Rasul said she is pleased with Muhammad’s appointment more so because it is an apolitical one.
She said Muhammad is familiar with BNM’s policies as an understudy of Zeti. “A tiger does not change its stripes,” she added.
Muhammad, who holds a master’s degree from Harvard University, has held the post of deputy governor since 2010. He joined the central bank in 1984.
In a statement released by BNM yesterday, Muhammad said he accepted the appointment as central bank governor with great humility.
“I look upon it as an opportunity and call to serve the nation. I will strive to carry out the duties of governor of Bank Negara Malaysia to the best of my ability. I wish to record my appreciation to the prime minister and the government for the confidence and trust placed upon me.
“It is important for the central bank to maintain monetary and financial stability, remain focused on its strategic agenda and work towards contributing to a better future for all Malaysians,” he added.
Muhammad thanked Zeti for her exemplary leadership and enormous contributions to the bank and to the nation.
Industry players were quick to welcome Muhammad as governor, with both the chairman of the Association of Banks Malaysia and Malayan Banking Bhd president and CEO Datuk Abdul Farid Alias and CIMB Group chief executive Tengku Datuk Seri Zafrul Tengku Abdul Aziz both saying they are confident Muhammad will continue the good work of his predecessors.
“The banking industry holds Zeti in highest regard and acknowledges her as a consummate professional who has played an immense role in navigating our country’s economy through the many challenges it faced over the years,” Abdul Farid said in paying tribute to Zeti.