Newly appointed Bank Negara governor Muhammad Ibrahim has been urged to tackle the crisis surrounding the debt-ridden Finance Ministry investment fund 1MDB.

“The appointment of Muhammad Ibrahim will hopefully increase the people’s faith in efforts to restore the country’s financial situation.

“The people also hope he will be firm in solving the 1MDB crisis that still remains unresolved,” said PAS deputy president Tuan Ibrahim Tuan Man in a statement.

He welcomed the former Bank Negara deputy governor’s new appointment as being in line with calls for the position not to be given to a political appointee.

Earlier, The Wall Street Journal reported that Finance Ministry treasurer-general Irwan Siregar Abdullah, who is on 1MDB’s board of advisers and an ally of Prime Minister Najib Razak, was earmarked for the post.

The financial daily said it stands by its reports and that Muhammad Ibrahim’s appointment was a U-turn stemming from pressure to reject Irwan.

Muhammad Ibrahim assumes his post starting May 1 following the retirement of longstanding chief Zeti Akhtar Aziz at the end of this month.

'Huge task awaits'

Tuan Ibrahim said the new governor has a “huge task awaiting him” to supervise the expenses of the government and government linked companies, apart from formulating policies that can stabilize and strengthen the country’s economy.

“However, he will still be the people’s focus in seeing the progress of1MDB, which is struggling with various issues that keep cropping up, what more at a time when it is facing issues of default (in its debt repayments),” said the PAS deputy.

He also commended Zeti for pressuring the government on the issue of her replacement.

He said PAS believes Muhamad Ibrahim would not have easily gotten the post had Zeti not “pushed and pushed” the government with various statements through the media on the issue of a non-political appointee for the governor’s post.

WSJ stands by reports, claims U-turn on Bank Negara governor