Malaysia’s Tabung Haji placed under central bank regulation as ‘interim solution’ – finance ministry
Malaysia’s Lembaga Tabung Haji, the pilgrimage fund board, has been placed under central bank regulation as an “interim solution” to improve the institution’s management and operations, the ministry of finance said on Thursday (July 22).
Founded in 1963 to provide services to Malaysia’s Muslims to save for the haj, Lembaga Tabung Haji has been operating as a statutory body governed by the Tabung Haji Act 1995. The savings deposits that it accepts are put into Shariah-compliant investments to generate returns.
Lembaga Tabung Haji has been under scrutiny in the last three years when an audit review by PwC in 2018 showed, among others, that the company’s management had manipulated the profitability of the fund, and did not prudently record some 549 million ringgit in impairment losses on investments.
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