This article first appeared in The Edge Malaysia Weekly on May 25, 2026 - May 31, 2026

THE government is understood to have approved an extension of the maturity of Urusharta Jamaah Sdn Bhd’s (UJSB) RM12.5 billion sukuk due for redemption this week (May 29) 

by another 10 years, sources familiar with the matter tell The Edge.

UJSB is wholly owned by the Minister of Finance Inc.

It is also understood that UJSB is transferring two assets, namely UJ Estates (Holdings) Sdn Bhd and 1.57 acres of land located at the Tun Razak Exchange (TRX) — collectively valued at RM1 billion — back to the Pilgrims Fund Board (TH), which will in turn reduce the nominal value of the sukuk to RM11.5 billion.

“If I’m not mistaken, the cabinet approved the restructuring earlier this month, on May 6. There could be an announcement soon,” a source familiar with the matter says.

Another source says he had heard that talks were ongoing between UJSB and the pilgrim fund on the 10-year extension. He says he is aware of the assets being transferred back to TH but he is not sure if the cabinet has given the green light to the 10-year extension in principle.

Checks with both UJSB and TH to verify the information were unsuccessful, with the executives being tight-lipped.

In mid-March this year, TH chairman Tan Sri Abdul Rashid Hussain had said at a media briefing that an announcement could be made “very soon” and that there was already “a happy solution according to market practices and there is not going to be any interruption to any issue”.

To recap, UJSB was the special purpose vehicle tasked with acquiring the underperforming assets of TH as the government sought to revive the pilgrim fund.

UJSB acquired the non-performing assets held by TH in end-2018 and paid RM19.9 billion — a hefty premium of RM9.9 billion — for assets worth RM10 billion. The assets included stakes in 106 listed companies, one unlisted plantation counter and 29 properties, including four hotels and a piece of land at TRX.

The listed companies in which UJSB acquired TH’s stakes include TH Heavy Engineering Bhd, which has since been delisted, Pelikan International Corp Bhd, which is now PBS Bhd (KL:PBSB), UEM Sunrise Bhd (KL:UEMS), IJM Corp Bhd ­(KL:IJM), CSC Steel Holdings Bhd (KL:SCSSTEL) and Icon Offshore Bhd, which has since been renamed Lianson Fleet Group Bhd (KL:LFG), to name but a few.

According to its website, UJSB had issued sukuk in two tranches in 2019, the first for RM13.2 billion with a seven-year tenure and profit rate of 4.05% per annum, and the second for RM14.35 billion with a 10-year tenure and profit rate of 4.1% per annum. The debt paper is understood to have been taken up by TH. There was also a cash injection of RM300 million by UJSB into TH.

It is understood that UJSB redeemed some of its debt paper early.

A check on Companies Commission of Malaysia’s (SSM) website reveals that for its financial year ended Dec 31, 2024, UJSB made an after-tax profit of RM948.1 million on revenue of RM1.4 billion. The first year UJSB made a profit was in FY2024. It is noteworthy that UJSB had accumulated losses amounting to RM12.42 billion at end-2024.

As at end-2024, UJSB had total assets of RM11.44 billion and total liabilities of RM23.86 billion.

TH had acquired the 1.57 acres at TRX for RM188.5 million or at RM2,760 psf in April 2015 and this was purchased by UJSB from the pilgrim fund at RM400 million or at RM5,856 psf at end-2018.

However, late last year, news reports had it that TRX City Sdn Bhd, the master developer of the 70-acre TRX, had sold a nearly one-acre plot of land to developer Beverly Group Sdn Bhd for about RM4,000 psf or in excess of RM170 million. Beverly Group is controlled by Singapore’s Qingdao Investments Pte Ltd.

UJ Estates, meanwhile, was previously known as TH Estates (Holdings) Sdn Bhd, and according to a SSM search, it is involved in the “cultivation of fresh fruit bunches”.

For its financial year ended Dec 31, 2024, UJ Estates (Holdings) registered an after-tax profit of RM48.24 million on revenue of RM158.02 million. As at end-December 2024, UJ Estates had total assets of RM670.86 million and total liabilities of RM35.64 million.

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