KUALA LUMPUR: Datuk Nor Shamsiah Mohd Yunus (pic) has been confirmed as the new governor of Bank Negara Malaysia.
The former central bank official who investigated the scandal-plagued state fund 1Malaysia Development Berhad (1MDB) was deputy governor at Bank Negara for six years until she left in November 2016.
She will replace Tan Sri Muhammad Ibrahim, who resigned from the top job earlier this month after questions were raised about the central bank’s role in a deal linked to 1MDB.
Muhammad was less than halfway through his five-year term when he left.
A spokesman for Prime Minister Tun Dr Mahathir Mohamad confirmed the appointment after it was approved by the Yang di-Pertuan Agong.
Nor Shamsiah led the investigation into the trail of money that flowed out of 1Malaysia Development Bhd (1MDB). She left Bank Negara in November 2016 amidst a clampdown by the previous government on people who had probed 1MDB.
Nor Shamsiah had worked with the central bank for 30 years before she left on Nov 15, 2016. She takes over from Tan Sri Muhammad Ibrahim on June 15.
Muhammad had tendered his resignation after questions were raised on the central bank’s purchase of a land from the federal government for RM2bil. The transaction was completed in January this year and the proceeds were used to pay off 1MDB’s debts.
After leaving Bank Negara, Nor Shamsiah joined the International Monetary Fund (IMF) in April last year where she was based in Washington DC. She was the assistant director of Monetary and Capital Markets Department there.
During Nor Shamsiah’s stint in Bank Negara, she was involved primarily in overseeing and ensuring the health of the banking sector, which is the core responsibility of the central bank in ensuring financial stability in the system.
Apart from banks, her area of supervision covered insurance and takaful companies, financial intelligence and enforcement, and talent management.
It was her oversight on the banks that saw her spearhead the investigations into 1MDB at the central bank level.
Nor Shamsiah was also involved in the financial sector resolution initiatives during the Asian financial crisis and the preparation and implementation of the Financial Sector Masterplan from 2001 to 2010.