FORMER Bank Negara senior officer Nor Shamsiah Mohd Yunus, who was among those investigating 1Malaysia Development Bhd for financial misconduct in 2016, has been named the central bank’s new governor.

Bloomberg quoted a spokesman for Prime Minister Dr Mahathir Mohamad confirming Nor Shamsiah’s appointment after her nomination was approved by the King. 

Nor Shamsiah had previously investigated the scandal-plagued 1MDB while she was at Bank Negara Malaysia, where she was deputy governor for six years until she left in November 2016. 

She replaces Muhammad Ibrahim, who resigned earlier this month after questions were raised about BNM’s purchase of land from the government in a deal that has been linked to 1MDB.

Muhammad, who took office in May 2016, had said that the deal was above board and transacted transparently.

He said upon resigning that the central bank would not be involved in deals connected to 1MDB which was under scrutiny.

“I am prepared to relinquish my post if I no longer have the strong trust and support of the public. I cannot in good conscience continue if it affects the bank’s image and reputation,” he had said.

Nor Shamsiah worked with the central bank for 30 years, where she was involved in crafting policy on financial governance, besides overseeing the banking sector, insurance and takaful companies, financial intelligence and enforcement, and talent management.

She also participated in the implementation of financial sector resolution initiatives during the Asian financial crisis and the preparation and execution of the Financial Sector Masterplan from 2001 to 2010.

As deputy governor, she was responsible for risk management at the central bank. She was also a member of the bank’s monetary policy committee and the Employees’ Provident Fund investment panel.

After leaving the central bank, she then worked for the International Monetary Fund in Washington D.C. where she was assistant director at the Monetary and Capital Markets Department. – June 22, 2018.