Tabung Haji’s losses weren’t due to market slump, its stocks fell much harder, says Amir Hamzah

KUALA LUMPUR, Aug 12 — Tabung Haji director Amir Hamzah refutes claims that the institution’s losses were caused by a market slump, explaining that the stock market remained robust and peaked in 2018, while its own stock holdings plummeted much more sharply that year. Finance Minister II Datuk Seri Amir Hamzah Azizan clarified that TH’s stock performance was significantly worse than the overall market decline of around 6 percent.

Hamzah also emphasized that management changes and a revamped board of directors have bolstered controls and governance at the institution. Despite being forced to write off RM2.6 billion on remaining holdings post-2018, Tabung Haji continued to fulfill its "hibah" obligations, with the amount growing annually. This success, Hamzah argued, demonstrates the positive impact of the recent institutional reforms.

The RCI also advised that hibah declarations should only be made after financial statements have been audited, a shift from the prior practice of pro forma declarations. Hamzah explained that these improvements have addressed past concerns, ensuring transparency and accountability moving forward.