Malaysia’s Central Bank Governor Offers Resignation Following Land-Deal Revelation

Proceeds from land purchase by the bank was used to aid troubled state fund 1Malaysia Development Bhd

KUALA LUMPUR—Malaysian central bank Gov. Muhammad Ibrahim has offered to resign following revelations that proceeds from a 2 billion ringgit ($503 million) land purchase by the bank were used to help troubled state fund 1Malaysia Development Bhd.

Mr. Muhammad, whose five-year term isn’t due to run out until 2021, made the offer on Tuesday, according to people familiar with the matter. His resignation and replacement are expected to be announced Wednesday, according to one of the people.

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