Govt to revamp Tabung Haji Act to put investments under SC oversight

Tuesday 22 Sep 2026

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KUALA LUMPUR (Aug 11): Lembaga Tabung Haji’s investments will be supervised by the Securities Commission Malaysia (SC), while haj operations management will be under the religious affairs minister.

A taskforce that includes Bank Negara Malaysia governor and the SC chairman had been set up to examine the proposed regulatory framework and other amendments to Tabung Haji Act 1995, according to Religious Affairs Minister Datuk Dr Zulkifli Hasan.

“Tabung Haji will remain a single and intact entity,” he said during a ministerial briefing at the special Dewan Rakyat sitting on the Royal Commission of Inquiry (RCI) report on the pilgrims fund board.

In the RCI report, the proposed regulatory structure was intended to divide supervisory responsibilities without breaking Tabung Haji into separate institutions.

The commission recommended that Tabung Haji’s investment function remain within the pilgrim fund instead of being transferred to a subsidiary or an outside investment manager.

The proposal has not received final approval and Zulkifli did not provide a timeline for the amendments to Act 535 or indicate when the task force’s final recommendations would be presented to the Cabinet.

Zulkifli said the task force would submit further details to him for consideration before they are presented to the Cabinet. Any resulting amendments would subsequently have to be tabled and passed by Parliament.

“To ensure that the matters reported by the RCI do not recur, clear legal provisions, including the applicable accounting standards and penalties for the misreporting of financial statements, will be included in the amended Tabung Haji Act, in line with the RCI’s recommendations,” he said.

However, it proposed that the investment operation be separated internally into a dedicated department called Dana Haji, which would be established under Act 535 and registered or licensed by the SC.

Dana Haji would manage and invest depositors’ money to generate stable returns while remaining part of Tabung Haji. The commission said keeping the investment and haj functions within the same entity was necessary because investment returns are used to support haj operations, including through the cross-subsidisation of pilgrims’ costs.

Separating the investment manager from the haj operator could complicate Tabung Haji’s ability to fund its haj obligations, particularly while financial assistance for pilgrims remains part of its operating model.

It also proposed that Dana Haji be led by an investment panel responsible for asset allocation, portfolio management, investment performance, risk management and the appointment of external portfolio managers. Senior investment officials, including the chief investment officer, would be appointed by the Tabung Haji’s board but supervised by the SC.

The SC proposal and planned amendments form part of the RCI’s 25 recommendations covering Tabung Haji’s governance, financial management, investment activities, deposit management and haj operations.

Edited ByJason Ng

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