Tabung Haji strengthens investment governance to manage risks

KUALA LUMPUR: The Tabung Haji (TH) has implemented a strengthened investment governance process with multiple levels of review to ensure investment decisions account for risk and Shariah considerations. Speaking in the Dewan Rakyat, Dr Zulkifli Hasan, Minister in the Prime Minister's Department (Religious Affairs), emphasized this process is crucial for TH's financial sustainability and depositor protection.

The governance journey starts with the Investment Executive Council, proceeds through the risk and Shariah divisions, Portfolio Review Committee, and culminates in the Investment Panel's decision. This systematic approach underlines stronger governance, according to Dr Hasan, responding to queries about TH's investment losses and prevention strategies.

He highlighted that these governance enhancements have also boosted TH's investment performance, reaching an all-time high of RM4.64 billion in income in 2025. TH's total assets have expanded to RM98.58 billion, surpassing liabilities of RM95.63 billion. Dr Hasan explained TH's prudent investment strategy, guided by a Strategic Asset Allocation framework that diversifies investments across asset classes, sectors, and markets, balancing sustainable returns and risk levels while maintaining diversification.

This strategy, developed with external consultants and board input, undergoes a three-year review to stay relevant to economic changes and capital goals. TH's diversified portfolio includes public and private markets, fixed-income instruments, equities, property, and money market instruments, both domestically and internationally.

This improved performance has allowed TH to raise its profit distribution rate to 3.5% in 2025, up from 1.25% in 2018, its highest in eight years. Despite inflation, TH maintained a haj cost of RM33,300 for four haj seasons from 2024 to 2027.