Kuala lumpur: The Lembaga Tabung Haji (TH) Recovery and Restructuring Plan has effectively managed RM12.6 billion in investment losses, with RM10 billion addressed under the 2018 recovery initiative and the remaining RM2.6 billion recognized progressively through the end of 2025. In a statement, TH highlighted that the 2018 restructuring was necessary to address a financial deficit that required an immediate government bailout to prevent insolvency.
According to BERNAMA News Agency, the financial gap identified at the end of 2017 widened to more than RM10 billion by the close of 2018. TH emphasized that without intervention, it would have been unable to declare any profit distribution, potentially leading to a financial market crisis and threatening national financial stability. The crisis was averted through asset sales, as TH would have otherwise been forced to liquidate assets at distressed prices due to a surge in deposit withdrawals.
The recovery and restructuring plan involved selling underperforming and distressed assets to the government at a premium valuation. This approach eliminated the asset-liability gap and restored TH's solvency. The government's special-purpose vehicle, Urusharta Jamaah Sdn Bhd (UJSB), acquired TH's assets valued at RM9.7 billion for RM19.9 billion. This transaction allowed TH to declare a profit distribution for 2018 and was financed by sukuk issued by UJSB, backed by government support with annual profit rates of 4.05 percent and 4.10 percent.
TH stated that although UJSB had made offers to sell assets back, none met its investment criteria until this year. TH repurchased a land parcel in the Tun Razak Exchange for RM270 million and an oil palm plantation for RM695 million, both at prices below their original sale values. These transactions were part of TH's strategy to enhance its investment portfolio and protect depositor interests.
TH's profit distributions have steadily improved, with rates rising to 3.25 percent for 2024 and 3.50 percent for 2025, compared to 1.25 percent in 2018. These improvements followed the recognition of RM2.6 billion in impairments on assets that could not be transferred to UJSB. TH's financial position has strengthened, and it has begun rebuilding reserves to support long-term stability.
TH remains dedicated to safeguarding depositor interests, strengthening public confidence, and ensuring its operations are conducted with integrity and accountability.