KUALA LUMPUR – Lembaga Tabung Haji’s (TH) move to refrain from investing depositors’ savings in high-risk investments is seen as appropriate in ensuring its continued ability to provide higher returns to depositors.
Universiti Kuala Lumpur Business School economic analyst Associate Professor Aimi Zulhazmi Abdul Rashid said this is in line with TH’s canny strategy for maintaining investment resilience based on the strategic asset allocation approach in the face of uncertainties.
“Depositors must understand that in terms of investments, the pursuit of high returns inherently involves high risks, and vice versa. Attaining high returns with low risks is a challenging feat.
“The investments are made in accordance with shariah principles, enabling TH to offer a reasonable return after zakat payment of 2.5%, which is settled on behalf of depositors,” he said, adding that depositors’ funds are invested in line with the halal and prudent investment principles.
On February 9, Minister in the Prime Minister’s Department (Religious Affairs) Datuk Dr Mohd Na’im Mokhtar said TH’s profit distribution for the financial year 2023 is expected to be announced in April after a full audit is conducted.
Previously, for the financial year 2022 (FY2022), TH declared a profit distribution of 3.1% after taking into account a zakat payment rate of 2.57%, resulting in a total distribution of RM2.65 billion to over 8.7 million depositors.
Aimi stressed the importance of depositors comprehending TH’s dual obligation: to cover the costs of the haj pilgrimage, which have been escalating annually while simultaneously striving to distribute dividends.
“The haj targeted financial assistance has also increased every year due to rising costs and this is out of TH’s control,” he said.
He said that TH paid RM265 million for haj assistance in 2023, with the amount expected to rise to RM350 million this year due to the increased cost of the haj pilgrimage.
He noted that TH needs to deal with factors beyond its control, such as the ongoing geo-political crisis in Eastern Europe and West Asia, the devaluation of the ringgit and the flow of global financial markets led by the United States Federal Reserve.
Meanwhile, Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid sees the TH hibah or dividend rate for FY2023 to be stable and not far from the 3.10% declared in FY2022.
“Tabung Haji’s investment strategy has always been in the diversification of asset classes, including in terms of exposure to stocks at the global level.
“Perhaps, last year’s encouraging global market activity will also boost TH’s investment income in 2023,” he said. – March 7, 2024