Central banks in South-east Asia.
Muhammad Ibrahim succeeded Zeti Akhtar Aziz as Malaysia's central bank governor on May 1; he was deputy governor from 2010. The government has thus undercut concerns that its choice would be politically motivated at a time of weakening economic growth and 1Malaysia Development Berhad (1MDB) investment fund-related problems. This leadership transition raises broader questions of institutional capacity among central banks in the other ASEAN core economies as the region integrates financially.
Muhammad Ibrahim's appointment will likely further strengthen the Malaysian central bank's independence.
In Indonesia, political pressure by the administration and parliament on Bank Indonesia will gradually erode its independence.
Military pressure on the Bank of Thailand is likely to grow.
