KUALA LUMPUR, March 13 — Muslim pilgrimage fund Lembaga Tabung Haji (TH) announced today a dividend at 3.05 per cent totalling RM2.1 billion for all depositors across the 2019 financial year.
In a statement today, TH credited the improved payout over 2018 to the organisation’s stronger finances, which were the result of good investment strategies and cost reductions.
“For the financial year of 2019, TH managed to generate investment revenue of RM3.3 billion, of which RM1.2 billion was raised in the fourth quarter,” it said in the statement.
“Overall, the TH-generated investment income is more stable with investment in fixed income assets generating 58 per cent or RM1.9 billion, while property, equity and Islamic money market instruments each contributed RM0.5 billion (15 per cent), RM0.5 billion (15 per cent) and RM0.4 billion (12 per cent).”
“The increase in profit after zakat deduction was achieved after TH accounted RM86 million for the payment of zakat to state Islamic religious councils in Malaysia, RM370 million for managing and providing various facilities to all Malaysian pilgrims and maintaining the rate of pilgrimage fee of RM9,980 (compared to the actual cost of RM22,900) for each Haj pilgrim who performed their first pilgrimage during the 1440 pilgrimage season,” the statement read.
TH group managing director and chief executive officer Datuk Nik Mohd Hasyudeen Yusoff said TH’s distribution of profit was an investment surplus after taking into account the expenses and assistance of pilgrimage cost, zakat payments and management costs.
“As such, TH depositors not only benefit from the return on their savings, but also contribute directly to helping Malaysian Haj pilgrims perform the fifth rule of Islam and the poor, in caring for their welfare. TH pays the zakat on behalf of the depositor and therefore the depositor will no longer have to pay zakat on the savings and profit distribution received,” Nik Mohd said.
Last year, TH announced its lowest dividend in history, at 1.25 per cent, amounting to RM913 million for all depositors for the 2018 financial year (FY2018).
Comparatively, for FY2017, TH had paid a total of 6.25 per cent hibah to its depositors who have not performed their pilgrimage and 4.50 per cent to those who have.
The minister in the Prime Minister’s Department in charge of Islamic affairs at the time, Datuk Seri Mujahid Yusof Rawa, said this was on the back of mismanagement by the previous Barisan Nasional (BN) administration that paid high hibah despite the company’s inability to pay.