The Royal Commission of Inquiry (RCI) report on Lembaga Tabung Haji (TH) was published publicly on July 29, 2026, revealing significant weaknesses in the fund’s governance, investment management, financial reporting, and oversight during the period from 2014 to 2020 [1, 2, 3]. The government established the six-member commission in 2021, chaired by former Chief Justice Tun Md Raus Sharif, with the report completed by July 2022 but withheld until this year to allow TH time to implement reforms and restore depositor confidence [2, 4].
The RCI uncovered a deficit gap of RM11 billion in 2018 caused by aggressive payouts and investment losses [3]. To address asset quality, TH transferred RM19.9 billion of underperforming assets to Urusharta Jamaah Sdn Bhd (UJSB), a government special-purpose vehicle, as part of a 2019 restructuring plan. UJSB issued RM19.6 billion in sukuk and injected RM300 million cash into TH [3, 5]. Despite these steps, some MPs from Barisan Nasional and Umno urged extending investigations beyond 2020 to cover UJSB and post-restructuring activities [5, 6]. The government has not announced holding a new RCI for this period but confirmed ongoing investigations based on the existing report [7, 8].
The RCI made 25 recommendations. By July 30, 2026, TH reported implementing 75% of them, reflecting substantial progress [2, 7]. Authorities including the police, Malaysian Anti-Corruption Commission (MACC), Bank Negara, and Inland Revenue Board have received the report for full probes, with MACC detaining seven individuals to assist investigations [7, 9]. Communications Minister Datuk Seri Fahmi Fadzil said, "We will hand it over to the authorities to conduct a full investigation based on all the findings" [7].
The report’s findings have major fiscal impact as Tabung Haji manages RM95.3 billion in funds from about 10 million Muslim depositors as of May 2026 [3]. Former Prime Minister Tan Sri Muhyiddin Yassin called for prosecutions to restore public confidence, saying, "Those found responsible should be prosecuted. We must restore public confidence in Tabung Haji and prevent past mistakes" [10]. Sultan Ibrahim Sultan Iskandar warned, "No one should escape action if they are truly found guilty. Most importantly, things like this must not happen again" [1].
The special Dewan Rakyat sitting on August 11, 2026, debated the RCI report with Prime Minister Anwar Ibrahim absent due to hernia surgery. Opposition MPs staged a walkout protesting the PM’s absence while Parti Pribumi Bersatu Malaysia (Bersatu) MPs stayed, calling for an independent forensic audit. Anwar criticized opposition factions for "political drama" and urged focus on "the betrayal of Tabung Haji" [11, 2, 5, 10].
Religious Affairs Minister Datuk Dr Zulkifli Hasan stated the previous administration under then-PM Ismail Sabri Yaakob delayed the report’s disclosure [4]. Datuk Azman Abidin, the Prime Minister’s Political Secretary, urged viewing the RCI as "a lesson learnt to strengthen the institution" rather than a political tool [8]. Minister of Domestic Trade Datuk Armizan Mohd Ali called for "transparent and independent" investigations to protect depositors’ rights [12].
On August 12, Communications Minister Fahmi Fadzil confirmed the report had been passed to relevant enforcement agencies for further action [7]. On August 13, Barisan Nasional urged the government to fully implement the RCI recommendations and review TH governance post-2020 [6].
