Government to Amend Tabung Haji Act to Strengthen Governance and Protect Depositors

Overhaul Following Royal Commission of Inquiry Findings

The Malaysian government is moving forward with comprehensive legislative amendments to the Tabung Haji Act 1995 (Act 535). Announced following extensive reviews of the Royal Commission of Inquiry (RCI) report on Lembaga Tabung Haji (TH), the proposed changes aim to permanently institutionalize rigorous financial governance and safeguard the lifelong savings of millions of Muslim depositors.

Minister in the Prime Minister's Department (Religious Affairs) Dr Zulkifli Hasan stated during a special parliamentary sitting that the overhaul is designed to prevent past administrative discrepancies from recurring. Key legislative updates will incorporate prescribed accounting standards directly into the legal framework alongside strict statutory penalties for any future financial misreporting.

Enhanced Oversight and Regulatory Frameworks

Under the proposed framework recommended by a high-level task force comprising the Bank Negara Malaysia (BNM) Governor and the Securities Commission (SC) Chairman, the fund's investment and financial management activities will fall under the supervisory purview of the SC. Meanwhile, core haj pilgrimage operations will remain directly under the supervision of the Prime Minister's Department, preserving Tabung Haji as an intact, unified institution.

Furthermore, the amendments address leadership structure and eligibility criteria. To insulate the institution from executive overreach and political interference, the legal framework will bar active politicians from holding chairman or board member positions. Future appointments will rely strictly on professional merit, relevant technical expertise, and stringent fit-and-proper standards.

Protecting Depositor Trust and Accountability

Prime Minister Datuk Seri Anwar Ibrahim emphasized that safeguarding the confidence of Muslims in the nation's premier Islamic financial institution remains a paramount objective for the administration. Engagement sessions with key stakeholders are actively underway to finalize the legislative details before formal introduction in Parliament.

Key Facts

• Legislative Target: Proposed amendments focus on upgrading the Tabung Haji Act 1995 (Act 535).
• Regulatory Oversight: Investment and fund management activities are set for monitoring under the Securities Commission framework.
• Board Governance: New provisions will introduce strict eligibility criteria, expertise-based selections, and a formal ban on active politicians serving on the board.

What People Are Asking

• Question 1: Why is the Tabung Haji Act 1995 being amended?
• Answer: The amendments are introduced to implement recommendations from the Royal Commission of Inquiry (RCI), enforce strict accounting standards, penalize financial misreporting, and enhance long-term governance.
• Question 2: Will active politicians still be allowed to serve on the Tabung Haji board?
• Answer: No, the proposed amendments explicitly prohibit active politicians from being appointed as the chairman or as members of the Tabung Haji Board.