Muhammad is new BNM chief

PETALING JAYA: The long speculation over who will replace Tan Sri Dr Zeti Akhtar Aziz as Bank Negara governor has finally ended.

Deputy governor Datuk Muhammad Ibra­him has been named as her successor effective May 1 for a five-year term, according to the Prime Minister’s Office.

Dr Zeti, 68, retires on April 30 after 16 years at the helm.

According to the statement, the Yang di-Pertuan Agong Tuanku Abdul Halim Mu’adzam Shah has on the advice of Prime Minister Datuk Seri Najib Tun Razak endorsed the appointment of Muhammad.

“I am confident that under Muhammad’s leadership, Bank Negara will continue to assist the Government and that he will provide his advice and views to help drive the country’s economic growth, and also administer the monetary policy and oversee the country’s financial industry, including Bank Negara’s continuous efforts to develop the industry,” Najib said in the statement.

On behalf of the Government, Najib also expressed his appreciation and gratitude to Dr Zeti for her contributions during her te­nure as the seventh governor of the central bank.

Muhammad, 56, the most senior deputy governor and the central bank’s second-in-command, was said to be favoured by the markets and Bank Negara itself.

He was appointed deputy governor in 2010.

In a separate statement, Muhammad said he accepted the appointment 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 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 said.

“I would like to also thank Tan Sri Dr Zeti Akhtar Aziz for her exemplary leadership and enormous contributions to the bank and to the nation.”

The long-awaited announcement came at about 2.30pm yesterday as Muhammad was supposed to attend a Terengganu-themed oil painting exhibition at the Bank Negara Malaysia Museum and Art Gallery at its Sasana Kijang building at 3pm.

Meanwhile, outgoing governor Dr Zeti said Muhammad’s appointment was definitely positive for the country.

“Being part of our policy team at the bank, his appointment will provide continuity and the much needed certainty in this prevailing period of great uncertainty.

“I have great confidence in his ability to lead the bank going forward,” she said.

Besides Muhammad, the other names cited as possible successors were the Minister in charge of economic planning in the Prime Minister’s Department Datuk Seri Abdul Wahid Omar, Malaysian ambassador to the United States Datuk Awang Adek Hussin and Treasury secretary-general of the Finance Mi­­nistry Tan Sri Mohd Irwan Serigar Abdul­lah.