Govt aims to table Tabung Haji Act amendments next year
KUALA LUMPUR: The government aims to table amendments to the Tabung Haji Act 1995 in parliament next year to strengthen the institution’s governance and safeguard depositors’ interests.
Malaysia's government plans to introduce amendments to the Tabung Haji Act in 2023 to bolster the organisation's governance and protect depositors' interests, according to Dr Zulkifli Hasan, who heads the Prime Minister's Department for Religious Affairs. The proposed changes aim to address weaknesses highlighted by the Royal Commission of Inquiry (RCI) that examined Tabung Haji's management and operations from 2014 to 2020.
Dr Zulkifli mentioned that Section 24 of the Act is among the provisions being reviewed, along with reforms concerning board appointments, governance, and regulatory oversight.
He assured the House of Representatives that the amendments will incorporate the RCI's recommendations, including the qualifications and expertise of board members, limitations on active politicians in the board, appointment procedures, and the establishment of statutory committees. Tabung Haji CEO Mustakim Mohamad stated that the internal work on the amendments was more than 90% complete, with the remaining tasks involving technical finalisation and consultations before submission to the Cabinet and Parliament.
A special task force comprising senior officials from Bank Negara Malaysia, the Securities Commission, and Tabung Haji has been formed to examine the proposed reforms. The task force, which includes the governors and deputy governors of Bank Negara Malaysia, the chairmen and deputy chairmen of the Securities Commission, and Tabung Haji's chairman and CEO, has met three times. Additionally, a separate technical committee consisting of management representatives from the three institutions has held five meetings.
To date, Tabung Haji has implemented 13 of the 17 recommendations it was responsible for, representing 76% of the suggested improvements. These recommendations cover governance, financial and investment management, risk management, reporting, and institutional reforms. The remaining eight recommendations involve other entities, such as the Finance Ministry and relevant authorities.
Dr Zulkifli mentioned that the four outstanding recommendations pertain to amendments to the Tabung Haji Act, related regulations, disciplinary matters, and the extent of regulatory oversight by Bank Negara Malaysia or the Securities Commission.
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