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TABUNG Haji (TH) faced the possibility of a massive financial crisis in 2018, with the government potentially exposed to liabilities of up to RM74.5 billion if a large-scale panic withdrawal had taken place, the Dewan Rakyat was told today.
Minister in the Prime Minister’s Department (Religious Affairs) Dr Zulkifli Hasan said the situation later came close to materialising in 2019 when TH recorded RM6 billion in net withdrawals within a short period after announcing a 1.25% hibah payout for the 2018 financial year.
“Imagine if no hibah had been declared for 2018. How much panic withdrawal could have happened?” he said during a special Dewan Rakyat briefing on the Royal Commission of Inquiry (RCI) report into TH.
Zulkifli said TH was technically insolvent at the time and required urgent intervention to prevent the situation from worsening.
He said the financial strain eventually led the then Pakatan Harapan government to carry out a restructuring exercise involving a bailout of more than RM10 billion to restore TH’s financial position.
The minister stressed that the move was aimed at rescuing TH and not taking over its assets, dismissing claims that the institution’s assets had been sold to non-Muslims or the Chinese community.
He said such allegations were misleading and had been used by certain parties to create public anger and division.
Zulkifli said the assets involved in the restructuring were transferred to Urusharta Jamaah, a company wholly owned by Minister of Finance Incorporated (MOF Inc), and remained under its ownership.
He said TH’s financial position had become critical by the fourth quarter of 2018, when the gap between its assets and liabilities had exceeded RM10 billion, leaving only three months to find a solution.
“TH at that time was not solvent and needed to be rescued,” he said.
The restructuring, Zulkifli added, was carried out to restore TH’s financial stability and ensure the institution remained sustainable in managing the affairs of Malaysian pilgrims. – August 11, 2026
