Tabung Haji to distribute RM2.65b for 2022 as profits stagnant amid global slow down

KUALA LUMPUR, April 28 — Lembaga Tabung Haji's (TH) 8.7 million depositors gained 3.1 per cent in profits for the 2022 financial year as income stays at the same rate as the previous period, the Islamic pilgrimage fund announced today amid a volatile global economy.

Total profits minus zakat (alms) was RM2.65 billion, Islamic Affairs Minister Datuk Mohd Na'im Mokhtar said at a press briefing to announce the fund's annual financial performance here.

In comparison, profit distribution for 2021 was RM2.46 billion.

“The distribution quantum is still competitive taking into consideration profit distribution for 2022 will be higher than the total average amount of fixed deposits for the entire 12 months in Islamic banks, that is 2.34 per cent after deducting zakat,” the fund said.

TH chairman Tan Sri Azman Mokhtar said revenue was “appropriate” since the fund was extra cautious with investments to factor in headwinds hitting the global economy throughout 2022.

“TH was more careful with its investments based on the allocation of strategic assets to face a volatile climate. Alhamdullilah, this helped us generate the appropriate income for the 2022 financial year,” he said.

Total fixed income, also known as sukuk, rose to RM2.22 billion from RM1.7 billion in 2021, making up 57 per cent of gross income.

Equities contribution rose to RM916 million or 24 per cent of total gross income, a jump of nearly a quarter billion from the year before.

Income from property investments increased to RM462 million from RM420 million, while Islamic money market income fell to RM259 million from RM290 million the prior year.

Costs of performing the haj has jumped 25 per cent to RM28,632 per person in 2022 from RM22,900 before the start of the Covid-19 pandemic in 2019, causing hajj financial support to rise.

Haj spending now accounts for 55 per cent to 65 per cent of a Malaysian's pilgrimage costs managed by the fund as cost is expected to go up further to RM30,850 this year, TH said last month.

The number of pilgrims is expected to rise to 31,000 this year with an estimated cost of RM400 million or higher, said TH chief executive officer Datuk Seri Amrin Awaluddin.

TH said it would apply for an additional pilgrimage quota for Malaysia in this year's haj.