Lembaga Tabung Haji (TH) has completed 76% of the 25 recommendations made by the Royal Commission of Inquiry (RCI), while amendments to the Tabung Haji Act are around 90% complete, said TH chairman Tan Sri Rashid Hussain.
Rashid said the remaining work on the RCI recommendations largely involves regulatory matters requiring engagement with external agencies, while the final stage of the Act amendments involves establishing a regulatory framework for TH’s investment arm.
“The final loop is to get Tabung Haji regulated,” he said during a press conference on TH at Tenera Hotel & Suites.
He said the Securities Commission Malaysia has been identified as the regulator for the investment arm, although discussions are still ongoing on the scope and technicalities of the arrangement.
“The investment arm is going to be carved out or identified as the part that needs to have a proper financial regulator in place to ensure a higher standard of safety for the depositors,” he said.
Rashid stressed that the proposed arrangement would not affect TH’s status as an institution, with the regulatory changes focused specifically on its investment activities.
He said the proposed amendments would need to be presented to the relevant ministers before being brought to the Cabinet.
On the implementation of the RCI recommendations, Rashid said the 76% completion rate was one percentage point above his own KPI, while the remaining recommendations largely involve matters outside TH’s direct control.
“The external linkages are never easy because it is a long process,” he said.
Rashid also said TH had strengthened its financial position by cleaning up its balance sheet, building reserves and putting stronger corporate governance measures in place.
“We are very much on the road to recovery. We have cleaned the balance sheet, started building reserves, written off everything and put all kinds of corporate governance into place. The proof of it is that we are now profitable,” he said.
He added that TH had increased its profits and dividends over the past two years and was confident the positive trend would continue.
