KUALA LUMPUR (Nov 24): The Ministry of Finance (MOF) is reviewing assets it acquired from Lembaga Tabung Haji (LTH) in 2018 to identify those that can be returned to the pilgrim fund, as the first tranche of sukuk approaches maturity in six months.

In a written parliamentary reply on Monday (Nov 24), the ministry reaffirmed its commitment to the sukuk redemption and said a detailed review, including due diligence, is underway between Urusharta Jamaah Sdn Bhd (UJSB) and LTH on potential assets to be returned as part of the redemption value.

UJSB was a special purpose vehicle set up under MOF to take over the assets from Lembaga Tabung Haji (LTH) in 2018.

"The asset review and selection process must be conducted carefully to ensure that the assets identified for redemption do not negatively impact the current valuation of LTH assets, thereby protecting LTH depositors’ interests," MOF said in a reply to Khairil Nizam Khirudin (PN-Jerantut).

Khairil had asked whether UJSB can pay LTH’s first sukuk tranche of RM13.2 billion in May 2026 and what steps the government is taking to ensure the recovery of Tabung Haji’s assets.

To recap, UJSB paid a premium of RM19.9 billion to LTH for underperforming assets worth about RM9.7 billion at the time. Of this, RM19.6 billion was raised via two sukuk issued in 2019, while RM300 million was paid in cash, according to the Auditor-General’s Report. UJSB was given a 10-year mandate to rehabilitate the assets.

On Thursday, MOF said that among the assets transferred to UJSB, 74% were listed equities, with a market value of RM7.4 billion but a transfer value of RM16.8 billion, while the remaining assets consisted of unlisted properties and plantations.

Under its strategic plan, UJSB has spent the first five years stabilizing and maximizing returns from non-viable assets post-restructuring. By the end of 2024, the company’s investment asset value had grown more than 18% to RM11.44 billion, despite market challenges, surpassing its previous valuation under LTH.

MOF said the status of these assets remains intact and on track under the Long-Term Strategic Asset Distribution Framework.

"Investment strategies under UJSB are reviewed annually to ensure they remain dynamic in line with changing investment opportunities, optimising returns in accordance with the company’s mandate," the ministry added.