Malaysia

Tabung Haji continues financial aid for pilgrims despite cost hikes

B40 to get assistance amounting to 64% of pilgrimage price, M40 to receive 48%

Updated 3 years ago · Published on 20 Mar 2023 8:54PM

Tabung Haji continues financial aid for pilgrims despite cost hikes
The payment rate for first-time Muassasah (voluntary) haj pilgrims in the B40 bracket this year is set to be RM11,980 per person, which is an increase of RM1,000 from last year. – AFP pic, March 20, 2023

by Farhana Farush

KUALA LUMPUR – Targeted and periodic financial assistance will be continued for potential Muassasah (voluntary) haj pilgrims this year despite an increase in costs to perform the pilgrimage, said Lembaga Tabung Haji (TH). 

In a statement, TH group managing director and chief executive Datuk Seri Amrin Awaluddin said Muassasah pilgrims are expected to pay RM30,850 to perform their haj, which is an increase from RM28,632 a year prior.

“The payment rate for Muassasah pilgrims in the B40 bracket who perform haj for the first time this year is set to be RM11,980 per person, which is an increase of RM1,000 from last year,” he said as quoted by The Vibes’ Bahasa Malaysia sister portal Getaran.

“Despite the RM1,000 increase, the government will bear the cost and potential B40 haj pilgrims only have to pay RM10,980 per person, similar to last year’s rate.” 

Amrin said that the cost for first-time Muassasah pilgrims in the M40 group is RM15,980, while those in the T20 bracket will pay the full cost of RM30,850. 

He added those who appeal to perform their Muassasah haj ahead of turn will pay the full cost, unless it is as a mahram (relative) to a jemaah (group), or as an assistant to an elderly pilgrim selected to perform the haj.

Amrin also said the B40 group will receive Haj Financial Aid (Hafis) of RM19,870, which is 64% of the overall cost, while the M40 group will receive RM14,870, equivalent to 48% of the cost.

Malaysian pilgrims have only paid a portion of their haj costs since 2001, as the remainder has been borne by TH through investment income spent on Hafis, which saw about RM2.2 billion spent between 2001 and 2022. 

The Hafis amount is estimated to be RM400 million for 2023, despite payment rate increments.

In light of this, Amrin said it will reduce the investment income that can be allocated to all TH depositors.

Muslims also need to understand the concept of istito’ah (capability) where haj worship is only obligatory for those who are able,” he added. 

Amrin said that the increase in haj fees this year is adjacent to its cost, which is inevitable following numerous factors out of TH’s control.

This includes inflation, value-added tax increments of 15%, service charges in Saudi Arabia, and post-Covid-19 costs, on top of development in Mecca and Medina, which puts pressure on the rental rates for accommodation.

“Significant increases are for various services in Saudi Arabia, including accommodation, food, transportation, and services in the Holy Land,” he said. 

Amrin opined the targeted financial aid is expected to reduce TH’s financial burden and achieve its main goal of providing convenience for Muslims to save money for their haj, in addition to providing facilities and services for Malaysian pilgrims’ welfare. – The Vibes, March 20, 2023

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