Nor Shamsiah ‘right choice to head BNM’

PETALING JAYA: Economists have lauded the appointment of Datuk Nor Shamsiah Mohd Yunus as the new Bank Negara Malaysia (BNM) governor for the next five years, effective July 1, commending her as the right choice for the job.

Alliance Bank Malaysia chief economist Manokaran Mottain, who was with BNM from 1986 to 1996, described Nor Shamsiah as knowledgeable, strict, transparent and fair.

“She’s a strict lady. I think she will be as good as Zeti (former governor Tan Sri Zeti Akhtar Aziz). Her credibility should not be questioned because she is well experienced in regulatory and supervision issues, the departments she has led in the past.

“Overall the central bank is on the right track. The person chosen is well suited for the post. She will be more transparent and we can expect right things from her. We’re positive on her appointment and this can lift the financial performance (of the country),” Manokaran told SunBiz.

He added that Nor Shamsiah had spent her days in the rank and file of the central bank and was not an outsider.

Manokaran also opined that there could be changes in certain policies under the leadership of Nor Shamsiah but noted that the overall direction of monetary policy will remain.

Sunway University Business School Professor of Economics Dr Yeah Kim Leng said Nor Shamsiah will provide continuity in the central bank’s leadership. “Given her central banking experience, she will likely continue the central bank’s fine tradition led by her predecessors.”

On whether her leadership will bring changes in monetary policy, Yeah said that is decided by the Monetary Policy Committee (MPC), taking into consideration prevailing conditions, both economic and financial, as well as current growth and inflationary outlook. Yeah is an external member of the MPC.

Nor Shamsiah was BNM deputy governor from 2010 until 2016 and recently served as assistant director of the monetary and capital markets division of the International Monetary Fund. She succeeds Datuk Muhammad Ibrahim after his resignation was accepted earlier this month.

Muhammad came under pressure over the central bank’s controversial RM2 billion purchase of land from the previous government and allegations that the proceeds from the deal were used to pay some of the debts of 1Malaysia Development Bhd.

As deputy governor, Nor Shamsiah was responsible for banking, insurance and takaful supervision, financial intelligence and enforcement, talent management, finance and shared services of the central bank.

Nor Shamsiah joined BNM in 1987 and served in various areas including prudential regulations, legislation, policies and guidelines for the financial sector and supervision. She was involved in the financial sector resolution initiatives during the Asian financial crisis, and played a key role in the formulation and implementation of the Financial Sector Masterplan (20012010) and Financial Sector Blueprint (2011-2020) that charts the development of the Malaysian financial system.

Nor Shamsiah graduated from the University of South Australia with a Bachelor of Arts degree in accountancy and is a Certified Practising Accountant.