Finance Minister II: Seven of Tabung Haji’s 14 troubled investments ended in total losses, Saudi-based deal caused biggest hit

KUALA LUMPUR, Aug 11 — Finance Minister II Datuk Seri Amir Hamzah Azizan disclosed to the Dewan Rakyat that seven out of the 14 troubled investments handled by Tabung Haji resulted in complete losses, as identified by the Royal Commission of Inquiry (RCI). Amir Hamzah stated that among these seven, the Al-Rawda Real Estates Development, a Saudi-based property development and management firm, bore the brunt of the financial devastation.

Tabung Haji had made a hefty RM1.5 billion contribution to a lease deal with Al-Rawda in 2015-2017, which comprised four hotels in Madinah meant for accommodating haj pilgrims from Malaysia. Despite the firm's failure to provide a bank guarantee or conduct due diligence, Tabung Haji proceeded with the agreement, trusting a personal note from an unidentified individual.

According to Amir Hamzah, Al-Rawda started skipping rent payments to Tabung Haji from the first quarter of 2019, culminating in RM1.86 billion in losses as of 2024, during his concluding remarks on the Tabung Haji RCI report.