Securities Commission: Putrajaya to determine whether RCI’s oversight recommendations for Tabung Haji will be adopted

The federal government of Malaysia will determine whether the Securities Commission (SC) should oversee the fund management and investments of Tabung Haji (TH), according to SC chairman Datuk Mohammad Faiz Azmi. The proposal for regulation is among recommendations made by the Royal Commission of Inquiry (RCI) and is currently under examination by a task force comprising Bank Negara Malaysia and TH.

Mohammad Faiz stated that the decision ultimately lies with the government, who merely follows instructions. The task force is currently discussing the RCI's proposals to ascertain which can be put into practice. If the government deems it suitable, the task force will implement the recommendations. Earlier, Minister in the Prime Minister's Department for Religious Affairs, Zulkifli Hassan, indicated that the SC was proposed as the regulator for TH's fund management and investment activities, as part of efforts to fortify the institution's oversight framework.

Faiz emphasized the appropriateness of such oversight, considering the substantial scale of TH's investments. He noted that TH, being an agency with significant investments, should indeed be regulated. Regarding the issue of syariah compliance, the RCI recommended the establishment of a dedicated syariah committee for TH, akin to those set up by Islamic banks.

This measure would provide depositors with assurance that their investments are genuinely in line with Islamic principles. Faiz deemed the proposal as sound and expressed hope that TH would establish the committee.