Lembaga tabung haji: Lembaga Tabung Haji's (TH) 3.5 per cent profit distribution for the 2025 financial year is a positive indication that the institution's recovery and restructuring efforts are starting to pay off, according to an economist. The Chairman of the Centre for Economic Studies at Universiti Kebangsaan Malaysia's Faculty of Economics and Management, Associate Professor Dr Harunnizam Wahid, stated that improved governance and management practices could enhance TH's financial and investment performance, potentially allowing for increased profit distributions to depositors.
According to BERNAMA News Agency, profit distribution is a critical aspect, considering that 75 per cent of TH's deposits are held by just 5 per cent of depositors with substantial funds and a focus on higher returns. Dr Harunnizam highlighted that the rise in profit distribution for 2025 indicates a stronger financial position for TH, emphasizing the need for a comprehensive assessment of the effectiveness of reforms following the Royal Commission of Inquiry (RCI).
Dr Harunnizam further elaborated that the evaluation should include improvements in governance, internal controls, risk management, investment discipline, TH's financial position, and the benefits received by depositors and pilgrims. He noted that the TH reports from 2022 to 2025 consistently demonstrate that the reforms have contributed to institutional strengthening and performance recovery, although not all targets of HIJRAH24, TH's three-year strategic transformation plan, were fully achieved.
Regarding the release of the TH RCI report, Dr Harunnizam commented on the government's decision to disclose its findings, which reflects a commitment to enhancing governance and transparency at the institution. He added that implementing the RCI recommendations, including possible amendments to the Tabung Haji Act 1995 (Act 535), should be prioritized to further bolster TH's governance and regulation, serving as a significant indicator of the MADANI Government's effectiveness in addressing the issue.
Meanwhile, Associate Professor Dr Md Fauzi Ahmad, a senior lecturer and researcher in Production Technology Management at Universiti Tun Hussein Onn Malaysia's Faculty of Technology Management and Business, remarked that the 3.5 per cent profit distribution for 2025 signals TH's recovery. However, he noted that its success should be measured against sustained performance over several years and the full implementation of the RCI recommendations.
Dr Md Fauzi indicated that while the rise in profit distribution suggests that TH's recovery and restructuring efforts are beginning to yield results, it is insufficient to conclusively determine the success of the reforms overall. He emphasized the importance of assessing TH's financial strength, investment performance, governance, risk management, and its capacity to maintain competitive profit distributions sustainably.
In March, TH announced a 3.5 per cent profit distribution amounting to RM3.22 billion for 2025, benefiting more than 9.7 million depositors, compared to 3.25 per cent the previous year. According to TH, the higher rate mirrored stronger financial performance, as investment income reached a record RM4.64 billion in 2025, and investment assets grew from RM95.06 billion to RM96.37 billion. TH chairman Tan Sri Abdul Rashid Hussain stated that the performance marked the best results in eight years, demonstrating the effectiveness of a disciplined investment strategy and a stronger governance framework.