KUALA LUMPUR (Oct 22): The Ministry of Finance (MOF) will allocate RM1 billion to Urusharta Jamaah Sdn Bhd (UJSB) in 2027 for early sukuk redemption, with the funds also aimed at strengthening Lembaga Tabung Haji’s (TH) cash flow.

“MOF is committed to providing allocations for early sukuk redemption, subject to the government’s financial position,” it said in a written parliamentary reply on Thursday, responding to a query from Datuk Ahmad Marzuk Shaary (PN-Pengkalan Chepa).

The allocation moves closer to the government’s initial plan to provide RM1.73 billion annually for early sukuk redemption.

Over the past six years, UJSB has received only RM930 million, according to its chairman, Datuk Mohd Shukri Hussin, in an interview with The Edge Malaysia, despite Cabinet approval for at least RM17.8 billion in allocations in April 2019, according to findings by the Royal Commission of Inquiry (RCI).

Ahmad had asked about UJSB’s latest net asset value, total liabilities and accumulated losses, the current value of assets transferred from TH, and whether the company could meet its sukuk obligations without further government support.

UJSB, which is wholly owned by the Minister of Finance Incorporated, was the special-purpose vehicle tasked with acquiring Tabung Haji’s underperforming assets in 2018 as the government sought to restore the pilgrim fund’s financial position.

UJSB acquired the underperforming assets held by TH in late 2018 for RM19.9 billion — a premium of RM10.2 billion over their stated value of RM9.7 billion.

In return, Tabung Haji received RM300 million in cash and two tranches of sukuk — Series 1 worth RM10 billion and Series 2 worth RM9.6 billion, due to mature in May 2029.

The Series 1 sukuk matured on May 29 this year, with a redemption value of about RM12.5 billion. Rather than redeeming the entire amount, UJSB opted to refinance RM11.5 billion through the issuance of a 10-year Series 3 sukuk to TH, maturing in May 2036. The remaining RM965 million was settled through the transfer of a parcel of land in Tun Razak Exchange and a plantation in Sarawak.

The Series 2 sukuk, meanwhile, is due to mature in May 2029.

On Thursday, the MOF said UJSB recorded an operating profit of RM297 million for the financial year ended 2025, despite accumulated losses of RM13.2 billion.

The accumulated losses were mainly attributable to the premium arising from the 2018 transfer of TH’s assets to UJSB, as well as accrued profit costs on sukuk issued to TH.

However, the MOF said the accumulated losses should be distinguished from the company’s operating performance, noting that UJSB had consistently recorded operating profits since 2019.

The value of assets under UJSB’s management increased to RM11.61 billion at end-2025, from RM9.7 billion in 2018, according to the ministry.

“UJSB’s rehabilitation efforts also enabled plantation companies that had returned to profitability to be transferred back to TH at prices below their acquisition costs,” it said.

The MOF also explained that previous allocations could not be provided to UJSB as planned because the government had prioritised spending to address the Covid-19 pandemic.

“This commitment will continue to support UJSB in meeting its obligations to TH while rehabilitating assets prudently,” MOF said.

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