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Deputy leader to head central bank

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SCMP Reporter

More sweeping changes have been made at the Monetary Authority of Singapore with Finance Minister Richard Hu stepping down as chairman after a 12-year reign and Senior Minister Lee Kwan Yew's son, Deputy Prime Minister Lee Hsien Loong taking charge.

A new managing director has also been appointed effective January 1, with Lee Ek Tieng moving upstairs to become vice-chairman of Singapore's de facto central bank.

Koh Yong Guan, permanent secretary for health and second permanent secretary for finance, will take over the managing director's chair.

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News of the appointments was warmly welcomed by the finance industry with observers seeing the changes as underlining the government's commitment to liberalise and reform.

Mr Lee would seem well-prepared for the job having spent the past few months working closely with former top United States central banker Gerald Corrigan on a high-level review of the republic's financial services sector after his father complained that it lacked Hong Kong's 'buzz'.

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While boasting a good regulatory track record, the authority has come under criticism from industry for being too monolithic, over-bureaucratic and inhibiting the financial sector's growth.

Mr Hu, 71, is to continue as finance minister, however Mr Lee is tipped as favourite to inherit that seat when Mr Hu retires.

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