Lady Commonwealth (Commonwealth Union) _ As the first female central bank governor in Asia, Tan Sri Zeti has earned a reputation as a pioneer whose career has played a crucial role in transforming Malaysia’s economy. Her successful career is a testament to her commitment to reform; she has established a standard for female leadership throughout Asia.
Zeti enrolled in the esteemed PhD program at the Wharton School of the University of Pennsylvania at the age of 27, a move that represented her early commitment to the world of economics and policy. Despite the acclaim her dissertation received, she found academic life too confining for her broader ambitions. She looked back on her decision during an interview in 2013 and stated, “I knew that I wanted to be a policy-maker.” This clarity of purpose would go on to define her impactful career.
After returning to Kuala Lumpur in 1979, she unexpectedly met then Bank Negara governor, Tun Ismail bin Mohamed Ali, at an art exhibition, which led to her first role as an analyst at the Southeast Asian Central Bank Research and Training Centre. Her insight and analytical skill promptly earned her a position in the economics department of Bank Negara Malaysia in 1985, marking the beginning of what would become a revolutionary career in central banking.
During the late 1990s Asian Financial Crisis, Zeti emerged as a calm and competent leader amidst the economic chaos, advocating for unconventional yet effective policies. Her appointment as Governor of Bank Negara Malaysia in 2000 not only made history but also represented the beginning of 16-year leadership that prioritised stability, reform, and forward-thinking financial governance.
Malaysia implemented significant reforms under Zeti’s stewardship, with her overseeing the liberalisation of the financial sector and introducing legislation to ensure its resilience. One of her most significant achievements to date is the Central Bank of Malaysia Act 2009, which protects the autonomy of the institution. The law stipulated that only the Yang di-Pertuan Agong could remove the Governor of Bank Negara, thereby offering it security from possible political interference during a time when concerns have been rising over state-linked financial scandals.
However, Zeti’s contributions also extend beyond national borders, with her chairing the Bank for International Settlements Central Bank Governance Group, which offers contributions to international debates on the best governance practices. Her role in the United Nations task force on financial system reforms solidified her position as a significant global figure in economic thought leadership.
As a firm believer in the importance of education, Zeti has proved to be a crucial figure in establishing institutions that have become inspirations in their fields. She led the creation of the International Centre for Education in Islamic Finance (INCEIF), the first university in the world dedicated to Islamic finance. This initiative was followed by the Asia School of Business, a partnership with MIT Sloan School of Management, which focused on nurturing innovative business leaders in Southeast Asia.
Zeti’s passion for inclusive economic participation is also quite clearly reflected in her views on women in leadership, where she has consistently emphasised the need for continuous reinvention and stated that acquiring new skills, knowledge, and capabilities is essential for women seeking leadership roles in public service. While she acknowledged the obvious glass ceiling, she also remains optimistic, observing that the foundation for women’s advancement has already been laid.
Over the years, her work has earned her much recognition, including the Royal Award for Islamic Finance and the Islamic Banking and Finance Award from the Islamic Development Bank. The credits not only celebrate her individual achievements but also validate the impact she represents on an international scale.
