Malaysia plans to amend Tabung Haji Act to strengthen governance next year

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Amendments to the Tabung Haji Act

Highlights

The Malaysian government plans to table amendments to the Tabung Haji Act 1995 in 2025 to strengthen governance and implement the Royal Commission of Inquiry’s recommendations.
The amendments cover board member requirements, a ban on appointing active politicians, the application of Act 240, and independent appointment and dismissal procedures.
Tabung Haji’s assets rose from RM76.8 billion (2018) to RM98.58 billion (2025), with the 2025 dividend rate expected to be 3.5%, the highest in 8 years.

This article was translated from the original. Read the original version by our correspondent here.

Scope of the amendments and transformation plan

As reported by The Edge Malaysia, the government aims to table amendments to the Tabung Haji Act 1995 next year to strengthen governance and address institutional weaknesses identified in the Royal Commission of Inquiry’s recommendations, Minister in the Prime Minister’s Department (Religious Affairs) Dr Zulkifli Hasan told the Dewan Rakyat on Wednesday.

He said the amendments are part of a broader transformation at the Lembaga Tabung Haji, including qualification and expertise requirements for board members, a ban on appointing active politicians, and independent procedures for appointments and dismissals. He said the special task force committee had met three times, while the technical committee had held five meetings to finalise the proposals as soon as possible.

Zulkifli said the proposed amendments also cover matters relating to statutory committees, hibah, the Hajj fund and the application of the Statutory Bodies (Accounts and Annual Reports) Act 1980, or Act 240, which is still under review. He added that Tabung Haji had also established a special task force comprising representatives from Bank Negara Malaysia, the Securities Commission Malaysia and Tabung Haji’s senior management to refine the proposals.

Impact on financial performance and oversight

Zulkifli said Tabung Haji’s financial position continues to strengthen following these reform efforts. Its assets stood at RM76.8 billion in 2018 and rose to RM98.58 billion at the end of 2025, while the dividend rate for 2025 reached 3.5%, the highest in eight years.

He said the Royal Commission of Inquiry, which examined Tabung Haji’s management and operations from 2014 to 2020, made 25 recommendations. Of these, 17 fell under Tabung Haji’s responsibility, while the other eight involved other parties, including the Ministry of Finance.

According to him, Tabung Haji has implemented 13 of the 17 recommendations within its remit, equivalent to 76%, while the remaining four are still being addressed. Matters still under consideration include amendments to the Tabung Haji Act and regulations relating to disciplinary matters and the scope of regulatory oversight.

In our earlier article on the proposed amendments to the Tabung Haji Act 1995, we reported on Tabung Haji’s move to bring governance improvements into the legislative process, including a proposal to bar active politicians from appointment to the board of directors and tighten the “fit and proper” criteria. We also highlighted the background to the review following the Royal Commission of Inquiry’s disclosures about governance weaknesses, financial risks and political influence during 2014–2020, as well as updates on deposit growth and profit distributions.

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