Kuala lumpur: The financial challenges faced by Lembaga Tabung Haji (TH), stemming from a widening gap between its assets and liabilities, led to the implementation of a large-scale recovery plan, followed by the establishment of a Royal Commission of Inquiry (RCI) to investigate issues involving the institution between 2014 and 2020. Following TH's financial and operational stabilization, the Cabinet today agreed to declassify and publicly release the RCI report concerning the pilgrims' fund board, with further investigations by enforcement agencies to continue based on the report's findings.
According to BERNAMA News Agency, the report contained 25 recommendations for improvement, of which 75 percent have already been implemented by TH's top management. The 3.5 percent profit distribution announced for the 2025 financial year was a positive indication of the institution's improved standing.
The chronology of TH's financial challenges began between 2014 and 2017, when TH was reported to have paid profit distributions (hibah) to depositors despite its liabilities exceeding its assets. By December 31, 2017, a financial review revealed that TH's assets stood at RM70.3 billion, while its liabilities amounted to RM74.4 billion.
On December 10, 2018, the then Minister in the Prime Minister's Department (Religious Affairs), Datuk Seri Dr Mujahid Yusof Rawa, revealed in Parliament the findings of the National Audit Department and Bank Negara Malaysia (BNM) on TH's financial position, which showed a deficit of RM4.1 billion in its 2017 accounts and an overall deficit gap of RM10.9 billion. He also disclosed BNM's warning on a liquidity crisis following RM6 billion in depositor withdrawals over a short period.
By December 31, 2018, the government, through the Ministry of Finance Incorporated's special purpose vehicle, Urusharta Jamaah Sdn Bhd (UJSB), took over TH's underperforming assets and injected RM19.6 billion in sukuk and RM300 million in cash as part of a bailout exercise to restore its financial position.
On July 14, 2021, the government agreed to establish an RCI under the Commission of Inquiry Act 1950 to investigate issues involving TH from 2014 to 2020. By 2022, the MADANI government received the RCI report on TH but postponed its release to allow measures to stabilize TH's financial position and operations to be implemented first, while avoiding unnecessary concern among depositors.
In March 2026, TH announced a profit distribution rate of 3.5 percent for the 2025 financial year, reflecting the institution's improved financial position following the recovery process. On July 22, 2026, Minister in the Prime Minister's Department (Religious Affairs) Dr Zulkifli Hasan informed the Dewan Negara that the proposal to make the RCI report on TH public would be presented to the Cabinet for approval.
Finally, on July 23, 2026, Prime Minister Datuk Seri Anwar Ibrahim confirmed that the RCI report on TH would be made public after receiving Cabinet approval. On July 29, 2026, the Cabinet agreed to declassify and publicly release the RCI report, which will be debated at a special Dewan Rakyat sitting, and directed enforcement agencies to begin a full investigation into its findings immediately.