Assets greater than liabilities, Tabung Haji assures depositors

Modified 26 Jan 2016, 11:03 am

Lembaga Tabung Haji (TH) today assured its depositors that it is in a financially sound position, with assets greater than liabilities.

The pilgrimage fund’s CEO Ismee Ismail said this when the fund’s investment portfolio of its subsidiaries is taken into account.

This comes after Bank Negara Malaysia reportedly sent a letter advising Tabung Haji on its slipping reserves, which the central bank said is worrying as it exposes the fund to a risk of mass-scale deposit withdrawals.

“The asset value earlier stated does not take into account the investment portfolio of subsidiaries or associated companies as well as our plantation and real estate assets.

“For the 2014 and 2015 financial years, the value of TH's assets was greater than its liabilities, taking into account the fair value of TH’s investment portfolio.

“Therefore, I would like to advise depositors to be careful in judging news spread through social media. TH is not facing financial difficulties,” he said in a statement.

Ismee added that dividends for the 2015 financial year will be announced next month, while all deposits are guaranteed by the government.

The fund has RM10.7 billion in cash assets as at Dec 31, 2015, he said.

He added that TH had already addressed concerns raised by the central bank by reviewing its reserves policy.

“Our stellar track record in providing subsidies for Haj pilgrimage and dividends for depositors given every year prove that TH’s financial position is solid.”

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