Thursday 07, June 2018 by William Mullally

Governor of Bank Negara Malaysia resigns amid controversy

Governor Muhammad Ibrahim denied allegations of impropriety, stating that corruption accusations were "totally untrue".


Prime Minister Mahathir Mohamad announced the resignation of Malaysia’s central bank governor as questions swirled over the role the monetary authority played in a deal linked to scandal-plagued state fund 1MDB.

The governor of Malaysia’s central bank Bank Negara Malaysia has resigned, the Prime Minister of Malaysia, Mahathir Mohamad, announced on Wednesday.

Governor Muhammad Ibrahim resigns as part of the controversy surrounding potential alleged corruption in the former government, and whether the central bank had a role in a deal that is linked to a state fund 1MDB, around which much of the controversy surrounds.

The government accepted the resignation offer. In a note to Bank Negara Malaysia’s staff, Muhammad wrote that he was “prepared to relinquish" the position in order to save the image of the central bank after the deal that was made to purchase land from the government, and where those proceeds were used.

Muhammad denied the allegations of impropriety.

"The perception is that the purchase of the land was made to intentionally aid and abet the misappropriation of public funds pertaining to the corruption and scandal surrounding 1MDB. This is totally untrue. Bank Negara Malaysia will never be party to any such activities that would betray the public trust in us,” said Muhammad.

A statement from Bank Negara Malaysia read: "The Cabinet has today accepted Governor Muhammad bin Ibrahim’s offer to step down as the Governor of Bank Negara Malaysia. The announcement of the new Governor will be made upon the Royal Consent of the Yang di-Pertuan Agong. The Bank will also ensure a smooth transition in the handing over of duties to the new Governor.Governor Muhammad Ibrahim would like to thank the Government for the honour and privilege to serve the nation and the people of Malaysia."


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