KUALA LUMPUR, Aug 11 — Seven of the 14 troubled investments involving Tabung Haji identified by the Royal Commission of Inquiry (RCI) resulted in total losses, Finance Minister II Datuk Seri Amir Hamzah Azizan told the Dewan Rakyat today.
Amir Hamzah said that among the seven, investments linked to Saudi Arabia-based property development and management firm Al-Rawda Real Estates Development recorded the highest losses.
From 2015 to 2017, Tabung Haji reportedly paid RM1.5 billion as part of a lease deal with Al-Rawda involving four hotels in Madinah designated to house haj pilgrims from Malaysia.
Amir Hamzah said that despite Al-Rawda failing to provide a bank guarantee or complete due diligence, Tabung Haji entered into the deal, relying only on an individual’s personal note.
He, however, did not name the individual.
“Al-Rawda began defaulting on its rent payments for Tabung Haji since the first quarter of 2019, leading to RM1.86 billion in losses as of 2024,” Amir Hamzah said during his winding-up speech on the Tabung Haji RCI report today.
Amir Hamzah said all 14 troubled investments identified by the RCI collectively resulted in RM13 billion in losses.
“This cannot be dismissed as bad luck in investments; this is clearly a multi-step failure,” he added.
Amir Hamzah also rejected claims that Tabung Haji recorded losses due to depreciating stock values, stressing that the losses instead resulted from weak decision-making and poor governance.
He also refuted allegations that the government sold Tabung Haji assets to third parties or foreign entities.
He said the government instead acquired Tabung Haji’s underperforming assets, with a market value of only RM9.6 billion, for RM19.8 billion via a special purpose vehicle called Urusharta Jamaah Sdn Bhd (USJB).
The restructuring allowed Tabung Haji to cover a shortfall of RM10.2 billion and shielded depositors’ funds from depreciating, he explained.
Separately, the Finance Ministry said in a statement today that Tabung Haji has regained a stronger financial footing based on three key indicators.
Its asset value stood at RM98.58 billion and exceeded its liabilities of RM95.63 billion as of Dec 31, 2025.
Depositors’ savings also climbed from RM75.4 billion in 2018 to RM93.4 billion in 2025.
The dividend rate increased from 1.25 per cent in 2018 to 3.50 per cent in 2025, valued at RM3.22 billion.
