KUALA LUMPUR – The post-pandemic opening of the country’s borders is one of the factors behind the increase in Lembaga Tabung Haji’s (TH) profit, from RM2.46 billion in 2021 to RM2.65 billion last year.
Universiti Sains Islam Malaysia senior lecturer at the faculty of economics and business, Muhammad Iqmal Hisham Kamaruddin, said the border reopening had restored economic activities in the country, including TH’s business and investment activities.
Iqmal said other factors that led to the 7% increase in profit included the lower cost incurred for haj operations last year due to the lower pilgrim quota of 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 said.
He considered TH’s profit distribution rate of 3.1% for the financial year 2022 as competitive and better compared to savings dividends in Islamic banks, which are at 2.4%.
Iqmal 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 needs to be widened by helping to develop the ummah’s (Muslim community) 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 invest 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% 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, April 29, 2023
