KUALA LUMPUR, Sept 4 — Prime Minister Datuk Seri Anwar Ibrahim today backed a proposal by Lembaga Tabung Haji (TH) to place its investment operations under the regulatory oversight of the Securities Commission Malaysia (SC) or Bank Negara Malaysia (BNM).

Anwar, who is also the finance minister, said the move was appropriate to ensure TH’s operations were subject to tighter regulation and to prevent abuse of power and other governance-related issues in the future.

He said the initiative by TH’s new management, led by its chairman Tan Sri Abdul Rashid Hussain, was a positive step towards strengthening governance and accountability at the pilgrimage fund management institution.

“This is, in my view, appropriate, and I have been briefed by them and support the measures, including several proposed amendments to the Tabung Haji Act 1995,” he told reporters after performing Friday prayers at Masjid Bukit Indah, Ampang Jaya, here today.

He added that the move would ensure tighter oversight of TH’s management by either the SC or BNM and prevent governance weaknesses from going unchecked, as had happened previously.

Yesterday, Abdul Rashid said TH was refining a new regulatory framework to place its investment operations under the statutory oversight of the SC.

He said the decision followed nearly six months of detailed deliberations by a joint task force, which was established to examine the proposed regulatory framework.

The task force also comprises the SC chairman and BNM Governor, with the aim of ensuring TH’s investment management complies with Malaysia’s capital market regulatory standards. — Bernama