KUALA LUMPUR, Aug 9 (Bernama) -- Lembaga Tabung Haji's (TH) 3.5 per cent profit distribution for the 2025 financial year, announced last March, is not merely a numerical achievement, but a manifestation of the effectiveness of the institution's recovery and transformation process following the findings of the Royal Commission of Inquiry (RCI).
The RCI Report on TH, published on July 29, revealed various weaknesses in the institution's management and operations between 2014 and 2020, leading to drastic corrective measures.
Efforts to strengthen TH have now seen 75 per cent of the RCI's recommendations successfully implemented, while the government remains committed to expediting the remaining 25 per cent in line with improvements in governance, investment discipline and risk management.
The best performance recorded in eight years is clear evidence that TH's existing business model, when managed with disciplined cost controls and robust investment strategies, is capable of delivering sustainable returns to depositors.
This also validates the RCI's recommendation that TH should continue to serve as trustee of the Muslim community's funds without external oversight.
The RCI's decision to reject the proposal for oversight by Bank Negara Malaysia (BNM) has also been proven accurate, with TH recording its highest-ever investment income of RM4.64 billion in 2025, up from RM4.56 billion the previous year.
With savings funds totalling RM88 billion, TH is now in a highly significant position to serve as a reputable fund manager on the global stage.
In fact, the RCI report projects that the fund could reach RM100 billion within the next two years, a target considered realistic based on its current growth trajectory.
Despite past controversies, TH's brand strength remains intact in the eyes of Malaysians and other Muslim nations.
The continued recognition from the Saudi Arabian Government of Malaysia's excellence in haj management remains a key pillar of confidence for its 9.7 million depositors to remain loyal to the 62-year-old institution.
The RCI report stated that TH has a long history of managing the savings of the Muslim community and haj operations, providing a strong foundation for the institution to continue being strengthened through appropriate reforms without compromising its core functions.
TH's recovery has also been reflected in the balance between investment returns and social responsibility through the payment of RM95.3 million in zakat for 2025, in addition to reaching out to more than 726,000 asnaf nationwide through the Zakat Wakalah Programme.
Therefore, retaining the existing business model with improvements to governance and investment policies under the Tabung Haji Act 1995 (Act 535) is key to TH's sustainability.
In essence, TH's recovery phase has now reached a mature stage, with the once-tarnished "Ummah Institution" narrative shining again, proving that high integrity and financial discipline have succeeded in freeing the institution from the shadow of past legacy issues.
-- BERNAMA