- Depositors do not have to worry because all savings in TH are safe and 100% guaranteed by the Government
- TH has high strategic assets and strategic plans to be implemented in ensuring that the reserves in TH can be rebuilt to enable future distribution of Hibah
- TH is currently under the supervision of Bank Negara Malaysia to strengthen the level of governance and trust of depositors in TH.
At an annual rate of 1.25% amounting to RM913 million.
TH grants Hibah to depositors based on the financial capability of the current year and is subject to compliance with the requirements of the Tabung Haji Act 1995 under Section 22 which requires the total assets to remain higher than the total liabilities after the distribution of Hibah is made.
For 2018, TH only has a surplus of assets over liabilities of RM1 billion. Therefore, the distributable Hibah for 2018 should not exceed this amount even though TH recorded a higher distributable profit.
TH 2018 hibah is calculated based on the average monthly minimum savings of 2018 x 1.25%
= (Jan-Dec 2018 minimum balance / number of months (12)) x 1.25%
TH's annual income was almost the same as the previous year but in 2018, TH only recorded a surplus of assets over liabilities of RM1.0 billion. Therefore, the Hibah that can be distributed in 2018 should not exceed RM1.0 billion despite the higher distributable profits.
Compared to the percentage of Hibah the previous year, TH is able to provide a satisfactory Annual Grant return or in line with other banking institutions. Please clarify this matter.
TH for the last four (4) years, although with a higher Hibah rate than the banking institutions, has distributed the Hibah in violation of the Hajj Act. This is because Hibah is still distributed even though the amount of assets is lower than the amount of liabilities which consists of depositors' savings.
What are the advantages for depositors to make savings in TH other than savings towards performing Hajj (especially for depositors who have performed the Hajj) if the annual Hibah is given a little?
- Savings are 100% guaranteed by the Government of Malaysia
- Savings based on Islamic syariah
- Hibah are exempted from tax payments
- Barakah, depositors indirectly are helping pilgrims by bearing the cost of pilgrimage
Does TH have any plans in the future to prevent the Annual Hibah from declining and restore the depositors' trust to make savings in TH?
- More prudent investments will be made to ensure a sustainable and stable return to the depositors
- Stronger risk managements will be effectively strengthened to achieve greater resilience and avoid the tendency to take excessive investment risks in the future
- Sustainable and holistic investment policies will also be practiced including introduction to stop loss limit.