KUALA LUMPUR: Lembaga Tabung Haji (TH) is in a much stronger financial position now compared with 2018 following continuous recovery and restructuring efforts.
In a statement today, the pilgrims’ fund board said the stronger position is reflected in its ability to maintain the cost of performing the haj for three consecutive years (2024-2026) as well as its announcement of the highest profit distribution in eight years for 2025.
TH recorded a significant increase in profit distribution rate to 3.5 per cent for the 2025 financial year (FY2025) compared with 1.25 per cent for FY2018, benefiting more than 9 million depositors.
According to TH, the recovery and restructuring measures undertaken in 2018 were strategic decisions aimed at safeguarding depositors' savings and ensuring the fund's long-term financial sustainability.
At that time, the gap between assets and liabilities, first identified in 2017, had continued to rise to about RM10 billion, which could possibly result in TH failing to meet the requirements set out under the Tabung Haji Act 1995.
This year, TH has reacquired two assets offered by Urusharta Jamaah Sdn Bhd based on commercial-based considerations in line with its Strategic Asset Allocation, including a parcel of land at the Tun Razak Exchange at its current market value of RM270 million compared with its premium value of RM400 million in 2018.
TH said it has also reacquired oil palm plantation firm UJ Estates Holdings Sdn Bhd for RM695 million following the company's income recovery and stable cash flow.
TH added that its continuous recovery plan over the past eight years has also made it blance sheet stronger and more resilient, enabling it to continue fulfilling its mandate of managing the savings of the Muslim community while consistently delivering world-class haj services. - Bernama
