{
  "id": 15832791,
  "title": "Kerugian TH turut jejas perniagaan dan ekonomi, kata ahli ekonomi",
  "url": "https://urgent.news/2026/10/21/kerugian-th-turut-jejas-perniagaan-dan-ekonomi-kata-ahli-ekonomi-15832791",
  "topic": "world",
  "section": "World",
  "published": "2026-10-21T01:00:00.000Z",
  "source": {
    "name": "Free Malaysia Today",
    "slug": "free-malaysia-today-freemalays",
    "url": "https://www.freemalaysiatoday.com/category/bahasa/tempatan/2026/10/21/kerugian-th-turut-jejas-perniagaan-dan-ekonomi-kata-ahli-ekonomi"
  },
  "original_language": "en",
  "account": "Economist Harridon Suffian stated that the financial troubles of Tabung Haji (TH) are likely to negatively impact local business and the economy. The investment shortfall does not fully capture the broader effects on the local economy, including reduced projects, weakening supply chains, and missed opportunities for business development, Suffian told FMT. TH's financial issues will certainly reduce the earnings and profit margins of businesses with business ties to the institution. Decreasing TH's spending and investment means fewer projects and contracts for small and medium enterprises (SMEs), many of which are owned by Malaysians. \"The growth of local businesses is hindered, and they lose various chances to expand, ultimately limiting their ability to contribute more to national economic development,\" Suffian said. The Financial Commission of Malaysia's (RCI) report on TH's management and operations from 2014 to 2020 highlighted irregularities in investments and poor financial reporting within the institution. The audit chief noted that TH's investment value dropped by RM164.58 million in TH Heavy Engineering (THHE) for 2017, which was not recorded in TH's financial statements. Other findings revealed financial pressure on TH's operations, such as TH Plantations selling land to pay debts and cut operating costs, contributing to a decline in palm oil production. The report also documented efforts to address other issues, such as approving the dissolution of Trurich Resources Sdn Bhd, a TH investment subsidiary, and efforts to recover TH-related investment funds. The reduced investment will decrease business earnings and profit margins while weakening subcontractors' ability to develop business. Lower corporate income tax will also weaken government revenue. TH, however, will reduce funds to cover previous losses, limiting the capital available for new investment and future earnings. According to Suffian, TH needs sufficient funds to continue investing and growing, but financial pressure limits this ability. Using tax revenues to save TH also affects the economy, as tax revenues could be used to fund other economic projects. Continued research is needed despite financial recovery, as Ahmad Zaharuddin Sani Ahmad Sabri from Global Asia Consulting told FMT. Recovery should not stop research into how investments are approved and their impact on others. He emphasized that the impact on subcontractors, suppliers, contractors, and workers needs to be clearly identified based on verified allegations, payment records, and other data. The RCI recommended a forensic audit of troubled investments and urged strong action following a police report and complaints of misconduct. Zaharuddin stressed that investment failure risks should be distinguished from poor management, stressing that financial losses are not a crime. He called for a thorough investigation and regular updates to Parliament on the progress of forensic audits, civil actions, and investment recovery efforts. \"Don't let financial recovery overshadow accountability,\" he said.",
  "summary": "Harridon Suffian berkata masalah kewangan TH menjejaskan pembekal, kontraktor dan PKS, manakala dana penyelamatannya mengehadkan sumber bagi keutamaan ekonomi lain.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Free Malaysia Today",
        "title": "Kerugian TH turut jejas perniagaan dan ekonomi, kata ahli ekonomi",
        "url": "https://urgent.news/2026/10/21/kerugian-th-turut-jejas-perniagaan-dan-ekonomi-kata-ahli-ekonomi",
        "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."
}