{
  "id": 15832527,
  "title": "TH’s losses carried wider cost for businesses, economy, says economist",
  "url": "https://urgent.news/2026/10/21/ths-losses-carried-wider-cost-for-businesses-economy-says-economist",
  "topic": "world",
  "section": "World",
  "published": "2026-10-21T01:00:00.000Z",
  "source": {
    "name": "Free Malaysia Today",
    "slug": "free-malaysia-today",
    "url": "https://www.freemalaysiatoday.com/category/nation/2026/10/21/th-s-losses-carried-wider-cost-for-businesses-economy-says-economist"
  },
  "original_language": "en",
  "account": "The financial troubles faced by Tabung Haji (TH) have extended beyond the fund itself, impacting local businesses, the economy, and wider society, according to an economist. TH's capital spending has decreased due to losses, which could have otherwise facilitated new investments and growth opportunities. This has led to fewer projects, weaker supply chains, and missed expansion opportunities for businesses within TH's ecosystem, particularly Malay-owned small and medium enterprises (SMEs). The reduced spending and investment by TH have translated to lower revenues and profit margins for these partners, suppliers, and subcontractors, hindering their growth and economic contribution. The royal commission of inquiry (RCI) into TH's operations between 2014 and 2020 revealed investment irregularities and weaknesses in financial reporting and governance, including the non-recognition of a RM164.58 million impairment in the value of TH's investment in TH Heavy Engineering (THHE) in the 2017 financial statements. TH's operating challenges, such as TH Plantations selling estates to repay debt and cutting spending, have contributed to lower palm oil production. The RCI also noted measures taken to address other issues, including the disposal of investment vehicle Trurich Resources Sdn Bhd's subsidiaries and efforts to recover funds linked to the Putrajaya Perdana investment. The economist emphasized that less business activity weakened suppliers' revenues and profit margins, making it harder for subcontractors to expand, which in turn affected government tax contributions. He stressed that taxpayer-funded rescues of TH carry additional costs, as these funds could have supported other economic projects. To ensure accountability, the economist called for forensic audits of problematic investments and examinations of the consequences of these decisions for others, beyond just recovery efforts.",
  "summary": "Harridon Suffian says Tabung Haji’s financial troubles affected suppliers, contractors and SMEs, while bailout funds came at the expense of other economic priorities.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Free Malaysia Today",
        "title": "TH’s losses carried wider cost for businesses, economy, says economist",
        "url": "https://urgent.news/2026/10/21/ths-losses-carried-wider-cost-for-businesses-economy-says-economist-15832790",
        "published": "2026-10-21T01:00:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}