Kuala lumpur: The implementation of the Royal Commission of Inquiry (RCI) recommendations on Lembaga Tabung Haji (RCI TH) should not only adhere to the stipulated timelines and action plans, but also be accompanied by clear performance indicators to ensure their effectiveness can be measured. Department of Economics lecturer at the Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia (IIUM), Dr Muhammad Irwan Ariffin, emphasized the need for consistent progress reports to reduce uncertainty and restore depositors' confidence and expectations.
According to BERNAMA News Agency, Dr Irwan highlighted the importance of aligning economic decisions and public actions with expectations and perceptions, beyond just the actual financial situation. He noted that any delays in implementing the recommendations or weaknesses in information dissemination could lead to public concern and a negative environment. This could potentially result in hasty depositor actions, such as unwarranted withdrawals.
Dr Irwan also pointed out the necessity for periodic reviews of the governance and administrative framework to facilitate internal improvements within the organisation. He stressed the importance of appointing board members based on expertise and integrity, as recommended by the RCI, and ensuring a clear separation of duties between the management body and special committees. These committees should operate without conflicts of interest and political pressure while adhering to strict accounting standards.
From an Islamic economic perspective, Dr Irwan mentioned that the proposed reforms reflect the values of trust, justice, and compliance with hifz al-mal (protection of wealth). Good governance, he added, would allow TH to accurately determine profits, reserves, and hibah distribution. He also advocated for investment assessments that consider governance decisions to ensure depositor trust, beyond merely evaluating halal or haram products and contracts.
To engage the younger generation, Dr Irwan recommended enhancing transparency in financial reports and improving financial literacy. These steps would facilitate haj registration at a younger age, as the financially literate younger population increasingly values transparency in financial statements, risks, and governance.
In terms of long-term investment strategies, Dr Irwan proposed a balanced portfolio diversification between stable and liquid assets and growth assets with high return potential.