KUALA LUMPUR—Malaysian central bank Gov. Muhammad Ibrahim has resigned, Prime Minister Mahathir Mohamad said Wednesday, following revelations that the government had used the proceeds of a land sale to the bank to help troubled state fund 1Malaysia Development Bhd.
Mr. Muhammad, whose five-year term leading Bank Negara Malaysia wasn’t due to expire until 2021, offered his resignation Tuesday, according to people familiar with the matter.
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