Tabung Haji reforms boost profit distribution to 3.5 per cent

KUALA LUMPUR - Lembaga Tabung Haji’s (TH) reform efforts are beginning to show results as the institution’s investment performance and profit distribution have improved, with the distribution rate increasing to 3.5 per cent for the financial year of 2025.

Putra Business School MBA Programme director Ahmed Razman Abdul Latiff said the development forms part of TH’s reforms, including the implementation of the Royal Commission of Inquiry’s (RCI) recommendations.

"Currently, TH has started to record an increase in return on investment, the highest number of depositors and also an increase in last year’s profit distribution by 3.50 per cent, which is the highest in the last eight years.

"These are all indicators or undeniable evidence that TH has fully recovered and no money has been lost. RCI intends to caution, especially the current management of TH, to be prudent,” he said during Bernama TV’s programme "Apa Khabar Malaysia: RCI Tabung Haji -- Memelihara Amanah Pendeposit” aired today.

He said TH had implemented more than 75 per cent of the 25 RCI recommendations completed during TH’s governance transformation and recovery phase.

Hence, he hoped that depositors do not need to worry about the status of their savings at TH following the RCI report on the institution.

"Depositors’ savings in TH are definitely safe and secure. There is no need to panic as their savings are fully guaranteed by the government. The more we save, the more is guaranteed,” he said.

In addition, Ahmed Razman said that, from an Islamic finance perspective, the management of TH depositors’ funds must be based on shariah principles, transparency, and accountability, with the interests of depositors remaining a priority.

He said TH is a unique institution because it manages depositors’ savings and invests the funds; its goal at its establishment was broader, which is to improve the economic status of Muslims so they could perform the hajj and have sufficient savings and assets to continue their lives afterwards.

Ahmed Razman opined that TH’s fund management needs to be implemented under a strict process and in accordance with shariah principles, while ensuring that transparency and accountability are prioritised so that depositors understand how their funds are managed.

On July 29, the RCI on TH released a 211-page report on the investigation into the management and operations of the institution for the period 2014 to 2020.

A special sitting of the Dewan Rakyat will be held on August 11, 2026, to debate the report. - BERNAMA