Tabung Haji recovery plan addressed RM12.6b losses but further reforms needed, says RCI

The Tabung Haji (TH) restructuring and recovery plan successfully addressed a RM12.6 billion loss in investments, restoring the institution's financial position, according to the findings of the Royal Commission of Inquiry (RCI). While progress has been made, the commission emphasized that further reforms are necessary to ensure TH's long-term sustainability.

The RCI noted that 75% of their recommendations had been implemented, with the government committed to accelerating the remaining 25% to enhance governance, investment discipline, and risk management. TH's investment income reached a record high of RM4.64 billion last year. However, the commission stressed that structural issues need to be addressed for TH's resilience.

Key issues include strengthening corporate governance, reviewing the Tabung Haji Act 1995, enhancing risk management and cost controls, and establishing a regulatory framework. The commission also expressed concern over the government's ability to redeem UJSB sukuk and provide annual cash allocations, warning that failure could lead to continued profit distributions without adequate backing.

Despite the challenges, TH has made strides in repurchasing assets at lower prices, including land at TRX for RM270 million and a UJ Estates oil palm plantation for RM695 million. The institution's recovery is evident in its increasing annual profit distribution, rising from 1.25% in 2018 to 3.5% in 2025.