Bank Negara Malaysia (BNM) will continue to enjoy its independence after its governor Zeti Akhtar Aziz retires.

This assurance was given by Zeti herself in addressing concerns raised by economists and analysts on the independence of the central bank after she steps down in April.

“BNM has institutional strength and resilience, founded on legal legilslation that accord us with wide-ranging powers and independence. With that comes accountability,” she said.

Zeti expects the independence of BNM to continue after her retirement on April 30.

“BNM has enjoyed it (independence) as it has a positive track record,” she said when met at Sajana Kijang this morning.

She emphasised that such independence was needed as the country needed an organisation “that will not be drawn into political development or a political agenda”.

According to her, this was important to ensure the stability of economic and financial policies in the best interests of the country.

She also gave her assurance to all concerned that BNM would not be helmed by a politician after she leaves.

“If we follow, even for financial institutions, we do not have politicians as members of the board, least of all the central bank,” she said when asked if the new governor could be a politician.

Besides the independence of Bank Negara, economists have listed the competence of Zeti's successor and the continuity of the central's bank policy as possible risks the bank might encounter.

Zeti also said the market should not be concerned that her retirement would cause a plunge in the ringgit as the currency's value was determined by external and domestic factors.

She reiterated that the underlying foundation of the nation's economy was that the country had a surplus and economic growth remained solid.

Education initiatives

Zeti, the first woman to helm the central bank and who has served for 16 years, stressed that she was unlikely to stay on.

“I am going to take some time off and I will start writing,” she said, adding that she will also support the education initiatives undertaken by Bank Negara.

Meanwhile, Zeti refused to comment if Lembaga Tabung Haji could sustain its five percent dividend and three percent bonus payout last year to depositors.

“I am not going to comment on individual institutions. We give advisories from time to time and usually before something goes wrong,” she said.

Tabung Haji was not the only institution BNM had given advisories to, she added.

“They may not be under our regulatory framework and regulatory regime but because they may have systemic implication and have linkages to financial institutions, we give out such an advisory,” she explained.

Bank Negara had cautioned the fund over slipping reserves, which it said could undermine the fund's ability to pay dividends and also trigger mass withdrawals.