Th Warns Haj Subsidies At Risk As Deposits Shrink

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Pilgrimage fund Lembaga Tabung Haji (TH) has again defended its ongoing rebranding exercise aimed at retaining and attracting new contributors.
It warned of the impact on haj subsidies unless the trend of net fund outflows over the past three years is addressed.
Berita Harian quoted TH Group chairperson Abdul Rashid Hussain, who revealed that the institution recorded RM2 billion in net withdrawals during the period, a situation he described as a “silent haemorrhage”.
“This shows that withdrawals have exceeded the amount of new savings received,” he reportedly told editors during a recent briefing at the TH headquarters.
According to the Malay daily, Rashid cautioned that the trend directly impacts the stability of TH’s fund size, which underpins its ability to generate investment returns.
“You must understand, our subsidies come entirely from the profits generated by depositors’ investments,” he stressed.
Of the total withdrawals, TH managing director and CEO Mustakim Mohamad reportedly said nearly RM1 billion was withdrawn this year.
“There has been a net outflow of RM2 billion over the last three years.
“This indicates there is no organic growth in savings, with 53 percent of our 9.6 million depositors holding less than RM1,300 in their accounts.
“As a result, half of haj offers in 2025 had to be declined by prospective pilgrims due to financial difficulties,” he was quoted as saying.
While TH records around RM3 billion in annual profits, Mustakim said the RM2 billion outflow shows that the fund is not expanding in a healthy, organic manner.
Issues surrounding the rebranding exercise had sparked heated debates in the Dewan Rakyat, with Pengkalan Chepa MP Ahmad Marzuk Shaary accusing Minister in the Prime Minister’s Department (Religious Affairs) Na’im Mokhtar of failing to give a direct answer on whether TH granted the rebranding contract to a non-Malay-owned company without an open tender.
Pengkalan Chepa MP Ahmad Marzuk Shaary (right) and Minister in the Prime Minister’s Department (Religious Affairs) Na’im MokhtarNa’im had reiterated TH’s statement, which denied claims that it set aside some RM20 million to be spent on the rebranding, and that the exercise was valued at RM5.9 million.
However, Marzuk claimed a document he received allegedly showed the amount involved was RM18 million, and Dewan Rakyat deputy speaker Ramli Nor later warned that Marzuk risks being investigated under the Official Secrets Act (OSA) for citing a confidential document.
Rising haj costs
Concerns surrounding TH’s funds are further compounded by rising haj costs.
According to Berita Harian, Rashid further disclosed that expenses had jumped 250 percent over the past 24 years.
Currently, TH shoulders most of these costs through subsidies - last year covering 55 percent for B40 pilgrims and 29 percent for M40 pilgrims.
“If the deposit base continues to shrink, our ability to generate profits to sustain these high subsidies will be compromised,” he warned.
This could result in TH having to reduce subsidy levels, pushing a heavier financial burden onto future pilgrims, he said. - Mkini

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