The Royal Commission of Inquiry (RCI) report released on July 29 confirmed that Lembaga Tabung Haji (TH) restored its financial position after addressing RM12.6 billion in investment losses, largely through a 2018 Recovery Plan and further resolutions by late 2025 [1, 2, 3]. The plan included transferring underperforming TH assets valued at RM19.9 billion to Urusharta Jamaah Sdn Bhd (UJSB), a government-backed special purpose vehicle, despite these assets having a combined market value of just RM9.7 billion at the time, resulting in a RM10.2 billion premium paid [1, 2, 3].
The RCI report highlighted that 75% of its recommendations had been implemented, with the government pushing to expedite the remaining quarter [1, 2, 3]. It warned, however, that key structural issues persist, including weak corporate governance, politicised management, poor risk controls, and outdated regulatory frameworks under the Tabung Haji Act 1995 [1, 2, 3]. The report also flagged concerns over the government’s capacity to redeem sukuk issued by UJSB and maintain annual cash allocations to TH depositors without adequate cash backing [1, 2, 3].
Between 2014 and 2020, the commission uncovered governance flaws and political interference affecting TH’s management and financial reporting [4, 5, 6, 7]. It cited a 2017 case where TH declared a RM3.4 billion profit, but after adjustments, the figure was a RM1.4 billion loss [4, 5, 6, 7]. Political factors influenced decisions, including high profit distributions (hibah) despite weak finances [5, 6].
Following the RCI report, the Malaysian Anti-Corruption Commission (MACC) detained five individuals linked to alleged misconduct within TH-related entities [4]. The Inland Revenue Board (IRB) has also been urged to probe possible tax evasion and money laundering connected to the Tabung Haji group, supported by forensic accounting [8, 9, 4]. PKR Youth and AMK called for a transparent investigation and forensic audit on the report’s findings. "Those who have betrayed this institution can no longer hide behind political influence," said PKR Youth vice-chief Dr Mohammed Taufiq Johari [5].
A special two-day Dewan Rakyat parliamentary sitting was held on August 11 and 13 to debate the 211-page RCI report [10, 11, 7]. On August 11, PAS and Parti Wawasan lawmakers walked out, demanding Prime Minister Anwar Ibrahim’s presence before proceeding, citing his absence for surgery [11]. Dewan Rakyat Speaker Tan Sri Johari Abdul responded, "If anyone wants to leave, they may leave. Those who want to stay may stay, because the people are watching you." Other MPs continued debating the report despite the walkout [11]. Umno secretary-general Datuk Dr Asyraf Wajdi Dusuki urged the debate to include developments after 2018 and called for action if wrongdoing is proven [12].
Minister in the Prime Minister’s Department Dr Zulkifli Hasan said, "The Cabinet has indicated that action should be taken against those involved in the case" [10]. The next parliamentary sitting to continue debate on the RCI report was scheduled for August 13 [12, 7].
