1. What is the evidence presented by the Government in ensuring that the payment of Sukuk redemption at the end of the maturity period or early redemption is made by Urusharta Jamaah Sdn Bhd (UJSB) to Lembaga Tabung Haji (TH)?
Government’s guarantee of commitment is as the below proofs:
- The Cabinet on April 5th 2019 approved and agreed for the Government to provide an allocation for USJB to finance the shortfall of Sukuk redemption of at least RM 17.8 billion under the 11th Malaysia Plan (11MP) in 2020 amounting RM500 million and in 12MP to 13MP amounting to at least RM 17.3 billion.
- The Government has also listed a guarantee commitment of RM20 billion to USJB as listed in the 2020 Federal Government Fiscal Review and Revenue Estimates Report.
Source: Federal Government Fiscal Review 2020, Section 5: Fiscal Risk and Liabilities.
The Government supports the TH Recovery Plan by incurring a liability of RM20 billion or 1.3% of the country GDP, as mentioned in the 2020 Budget Speech.
Letter of support issued by the Minister of Finance Incorporated (MKD) to USJB to ensure that USJB remains operating under going concern throughout the sukuk period and has the financial capacity to make unlimited sukuk payments according to their respective maturity dates.