Govt aims to table Tabung Haji Act amendments next year

KUALA LUMPUR: The government aims to table amendments to the Tabung Haji Act 1995 in parliament next year to strengthen the institution's governance and safeguard depositors' interests.

Minister in the Prime Minister's Department (Religious Affairs) Dr Zulkifli Hasan said the proposed amendments would address weaknesses identified by the Royal Commission of Inquiry (RCI) into Lembaga Tabung Haji's management and operations between 2014 and 2020.

He said Section 24 of the Act was among the provisions being examined, alongside reforms involving board appointments, governance and regulatory oversight.

"We will work towards finalising the discussions as soon as possible and aim to amend the Tabung Haji Act next year," he told the Dewan Rakyat today.

Zulkifli was responding to a supplementary question from Nurul Amin Hamid (PN-Padang Terap), who asked about the timeline for tabling the amendments and whether Section 24 would be removed.

Nurul Amin also sought assurances on government protection for depositors, including whether guarantees would cover their entire savings.

Zulkifli said the amendments would take into account the RCI's recommendations, including board members' qualifications and expertise, restrictions on active politicians, appointment procedures and statutory committees.

Other matters under consideration include hibah arrangements, the haj fund and relevant provisions governing Tabung Haji.

He said the review would also consider feedback from stakeholders to address shortcomings identified by the RCI.

Previously, on Sept 3, Tabung Haji chief executive officer Mustakim Mohamad said work on the proposed amendments was more than 90 per cent complete at the institution's internal level.

He said the remaining work involved finalising technical matters and consultations with relevant parties before the proposals could be submitted to the Cabinet and subsequently Parliament.

Zulkifli said a special task force comprising senior representatives from Bank Negara Malaysia, the Securities Commission and Tabung Haji had been established to examine the reforms.

Its members include the governor and deputy governor of Bank Negara Malaysia, the chairman and deputy chairman of the Securities Commission, and Tabung Haji's chairman and chief executive officer.

He said the task force had met three times, while a separate technical committee comprising management representatives from the three institutions had held five meetings.

Earlier, responding to a question from Aminolhuda Hassan (PH-Sri Gading) on the outstanding RCI recommendations and the implementation timeline, Zulkifli said Tabung Haji had implemented 13 of the 17 recommendations under its responsibility, representing 76 per cent.

He said the RCI had proposed 25 improvements covering governance, financial and investment management, risk management, reporting and institutional reforms.

Of these, 17 recommendations fell under Tabung Haji's responsibility, while the remaining eight involved other parties, including the Finance Ministry and relevant authorities.

Zulkifli said the four outstanding recommendations concerned amendments to the Tabung Haji Act, related regulations, including disciplinary matters, and the scope of regulatory oversight by Bank Negara Malaysia or the Securities Commission.