Business

Higher bonus by Tabung Haji despite challenges

Datuk Seri Johan Abdullah

Datuk Seri Johan Abdullah

Ahirul Ahirudin
Written by Ahirul Ahirudin

KUALA LUMPUR — February 7, 2018: The cost of subsidising passage for the pilgrimage is increasing while there were big losses in its investments in the oil and gas sector but despite this, Lembaga Tabung Haji (TH) is able to give its depositors a higher bonus for last year than 2016.

This was made possible after TH managed to offset the higher costs and losses with good portfolio management and better profits by its subsidiaries and other investments.

Despite a loss of RM470 million in the O&G sector, TH recorded a 13 per cent increase in net profit last year, at RM2.8 billion compared to RM2.5 billion previously.

“Good portfolio management had seen TH made an impairment cost of RM470 million for its investment in oil and gas,” said Minister in the Prime Minister’s Department Datuk Seri Jamil Khir Baharom at the announcement of the bonus payment today.

The subsidiaries contributed RM1.1 billion to the group’s profits.

Among these subsidiaries are BIMB Holdings Berhad (RM706 million), TH Properties Sdn. Bhd. and TH Hotel & Residence Sdn. Bhd. (RM113 million each).

The ever increasing cost for pilgrimage means that last year alone TH had to fork out RM356 million for subsidies and indirect costs.

For this year, it is estimated that TH will incur even more, at approximately RM400 million.

Despite the challenges, TH announced that depositors will receive an after-tithe bonus of 6.25 per cent for 2017, with 1.75 per cent meant for those who have yet to perform their pilgrimage.

 

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Ahirul Ahirudin

Ahirul Ahirudin