SC awaits government decision on regulating TH investments

The Securities Commission Malaysia (SC) is ready to implement regulation over Tabung Haji (TH) investments, should the government approve recommendations from a recent review of the pilgrim fund's governance and investment structure. SC Chairman Datuk Mohammad Faiz Azmi announced that a joint task force, consisting of the SC, Bank Negara Malaysia (BNM) and TH, is evaluating the review committee's suggestions to decide which ones to adopt.

Should the government deem it suitable, the SC plans to proceed with the implementation. However, for now, the task force is focusing on discussing the recommendations with BNM and TH. Faiz emphasized that TH, due to its substantial investment scale, should be subject to appropriate regulatory oversight, though the ultimate decision lies with the government.

The SC is actively reviewing TH's fund and investment management processes as part of efforts to enhance governance in accordance with the Tabung Haji Act 1995. This review aligns with the Royal Commission of Inquiry (RCI) recommendations for reforms to TH's governance and investment framework. These reforms include increased separation of responsibilities for haj management, financial matters, funds, and investments, as well as the creation of a dedicated investment department called Dana Haji within TH, which would be registered or licensed by the SC.

To ensure TH's investments remain Shariah-compliant under any new regulatory framework, Faiz stated that the review committee proposed establishing a Shariah committee for the pilgrim fund board. This proposed committee would provide greater assurance to depositors that their funds are invested in line with Shariah principles.