Malaysia names woman to head central bank
Malaysia names woman to head central bank
KUALA LUMPUR (AFP): Malaysia has appointed Zeti Akhtar Aziz to be the new governor of the central Bank Negara Malaysia with effect from May 1, the official Bernama news agency said on Saturday.
Zeti, 52, the first women to take the post, is currently the deputy governor. The finance ministry in a two paragraph statement to Bernama announced the appointment.
The U.S.-trained economist will succeed Ali Abul Hassan Sulaiman who retires at the end of April when his 18-month contract expires.
Zeti gained a doctorate from University of Pennsylvania, specializing in monetary and international economics in 1978.
Finance Minister Daim Zainuddin said on Friday that the new governor must be knowledgeable in the fields of banking and economics and "be able to give me good advice."
The post of Bank Negara governor is one of the most influential positions in the economy. The central bank's main role is to ensure Malaysia's economic and monetary stability -- including a stable currency and low inflation.
It also has overall control of the banking and insurance industry.
In August 1998, Zeti, who was then the assistant governor, shot into the limelight when she was made the acting governor following the double resignation of governor Ahmad Mohamad Don and his deputy Fong Weng Phak.
The government did not give any reasons for their resignation but analysts said it was due to Ahmad's policy of high interest rates when the economy was hit by the Asian economic crisis in July 1997.
Ahmad and jailed ex-former finance minister Anwar Ibrahim favored a tight monetary policy to defend the ringgit, as opposed to Prime Minister Mahathir Mohamad.
Anwar, who was deputy premier and heir apparent was sacked by Mahathir in September 1998. Anwar was jailed for six years last April for abusing his powers to cover up allegations of sexual misconduct. He is now on trial for sodomy, punishable by up to 20 years in jail.
Ramon Navaratnam, former treasury deputy chief described Zeti as a brilliant economist and a clear articulator of government policies.
"She explained to fund managers, to the World Bank and the IMF (International Monetary Fund) Malaysia's approach to the Asian financial crisis," he said.
Malaysia fixed the ringgit's value at 3.80 to the dollar as part of selective capital controls imposed in September 1998.
Navaratnam, who is now adviser to Sungei Way Group, a construction giant, said Zeti has good communications skills with staff members and close rapport with finance ministry officials needed to run the central bank effectively.