Finance Ministry: Tabung Haji’s finances are stronger, but taxpayers still bore the RM13b fallout

The Ministry of Finance confirmed that Tabung Haji's financial situation is stable and becoming stronger, as evidenced by an increase in assets surpassing liabilities and depositors' savings. As of December 31, 2025, total assets reached RM98.58 billion, while liabilities stood at RM95.63 billion. Depositors' savings grew from RM75.4 billion in 2018 to RM93.4 billion in 2025, and the distribution rate has climbed from 1.25% in 2018 to 3.50% in 2025, amounting to RM3.22 billion in total.

The ministry emphasized that depositors' savings are protected under Section 24 of Act 535, guaranteeing the entirety of each depositor's savings. However, the government bore the burden of losses arising from financial and investment mismanagement before 2018, along with depositors receiving a low distribution rate. The total losses amounted to nearly RM13 billion, with the government covering RM10.2 billion through Urusharta Jamaah Sdn Bhd and TH absorbing RM2.6 billion in impairments.

Despite these challenges, the finance ministry reiterated its commitment to ensuring the crisis doesn't recur, with plans to amend the Tabung Haji Act 1955 (Act 535) to introduce Securities Commission oversight of the institution's investment activities.