Central bank chief steps down

Malaysian Prime Minister Mahathir Mohamad has accepted the resignation of the central bank governor, the latest in a string of departures as the 92-year-old leader purges top officials seen as close to the scandal-plagued previous government.

Angered over accusations of massive corruption, Malaysians delivered a shock election result last month by voting out a coalition that had led the country for the six decades since independence.

The new government is seeking to unearth suspected graft, in particular in connection with big losses at state fund 1Malaysia Development Berhad (1MDB), during the nearly 10 years that former premier Najib Razak spent in power, casting a cloud over several top officials.

Mahathir, Najib's mentor-turned-foe, told a news conference after a cabinet meeting yesterday that the central bank's governor, Muhammad Ibrahim, had offered his resignation.

"We have not decided on his successor because we need to have the approval of the Agong before we can announce," Mahathir said, referring to the king, adding that the new government would meet him as soon as possible to discuss a successor.

Muhammad, a career central bank official, has completed less than half his five-year term, which began in May 2016.