Selangor Journal
A general view of the Lembaga Tabung Haji (TH) headquarters at Menara TH Tun Razak in Kuala Lumpur. — Picture by BERNAMA

Border reopening among factors contributing to increase in TH profit

KUALA LUMPUR, April 29 — The opening of the country’s borders after the Covid-19 pandemic is one of the factors contributing to the increase in Lembaga Tabung Haji’s (TH) profit, from RM2.46 billion in 2021 to RM2.65 billion in 2022.

University Sains Islam Malaysia (USIM) senior lecturer at the Faculty of Economics and Business, Dr Muhammad Iqmal Hisham Kamaruddin, said opening the borders had restored economic activities in the country, including TH’s business and investment activities.

Muhammad Iqmal Hisham said other factors that led to the increase of seven percent in profit, included the lower cost incurred for the haj operations in 2022 due to the haj quota for the year at only about 15,000 people.

“Although the original purpose for establishing TH was to prepare a medium fund and for haj management, the Muslim community here believed that TH is also a platform for them to invest and get competitive returns,” he told Bernama.

He considered the rate of TH’s profit distribution at 3.1 per cent for the financial year 2022 as competitive and better, compared to the savings dividends in Islamic banks, which is at 2.4 per cent.

Muhammad Iqmal Hisham suggested that TH be more active in exploring business opportunities by venturing into a more sustainable and competitive sector that can provide good returns.

“To achieve this, the TH management needs to have expertise in investment and business. TH’s direction and role need to be widened by helping to develop the ummah’s economy rather than solely focusing on haj affairs,” he said.

Meanwhile, trader Rafida Mohd Ithnin, 48, who is a TH depositor, hopes the profit distribution rate will increase every year, taking into account the huge number of TH depositors compared to Islamic banks.

Another depositor, Aizat Hanafi, 24, who is with the private sector, said he used the TH platform to make an investment of his personal savings and hoped to perform the haj pilgrimage through the agency.

Yesterday, Minister in the Prime Minister’s Department (Religious Affairs) Datuk Mohd Na’im Mokhtar announced a 3.1 per cent profit distribution for TH after zakat for the financial year 2022.

He said the profit distribution involved a total of RM2.65 billion and will benefit more than 8.7 million TH depositors.

— Bernama

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