PAS: Haj cost hike 'unreasonable, poorly timed'

Summary

• Takiyuddin Hassan raises concerns that 20pct hike in haj payment may make it unaffordable to many.

• PAS leader notes the price has increased several times over recent years.

• He claims Tabung Haji’s current investment policy means it could not cut down haj costs.

PAS has raised concerns regarding the affordability of the haj pilgrimage after Tabung Haji announced an increase in rates by 20 percent next year.

The Islamist party’s secretary-general, Takiyuddin Hassan, called the hike unreasonable, poorly timed, and a significant burden on low- to middle-income Muslims.

“Especially given the current economic pressures, including the rising cost of living, essential goods prices, and limited employment opportunities,” he said in a statement today.

Yesterday, TH announced the haj payment rates for muassasah pilgrims: RM15,000 for first-time B40 group pilgrims, RM23,500 for the M40 group, and RM33,300 - the full cost - for the T20 group.

TH group managing director and CEO Syed Hamadah Syed Othman reportedly said the hike was due to increased costs for accommodation, flights, and service charges, which account for up to 87 percent of the total expenses.

However, Takiyuddin argued that such a step is unnecessary.

He highlighted the payment increases over recent years, noting the rise from RM10,980 in 2022 to RM12,356 in 2024, compared to the previous years when payments were under RM10,000 per pilgrim.

“In addition to considering the financial burden faced by prospective pilgrims, TH’s policies regarding its role and founding purpose must be re-examined due to their impact on the institution’s ability to continue providing the best facilities for citizens to perform haj - both in terms of service quality and affordable costs for all groups,” he said.

‘Bad investment policy’

Takiyuddin also raised concerns over TH’s shift in investment focus to fixed asset holdings, which he claims is the primary reason it cannot “generate reasonable profits to maintain haj costs at a lower level.”

He referred to TH’s restructuring during the Pakatan Harapan administration under Dr Mahathir Mohamad, when investments were focused on fixed assets.

“Therefore, PAS urges TH to withdraw its decision to raise haj costs in 2025 and calls on the government to review TH’s investment policy to enable it to fulfil its role as a profitable investment fund for Muslims,” Takiyuddin added.

According to a Bernama report on March 14, 2020, the then TH group managing director and CEO, Nik Mohd Hasyudeen Yusoff, stated that more than half of the board’s assets were invested in fixed-return investments amid challenges in the global financial and economic markets.

‘Unaffordable to many’

Bersatu Youth communication and new media director Na’im Brundage described the hike as unacceptable, considering that the total haj cost remains at RM33,300.

“The implication of this sharp increase is that many from the B40 group may no longer be able to afford to perform the haj, despite saving for years with the institution in hopes of fulfilling this obligation.

“With haj payment rates rising steeply every year, it is highly likely that this hope will remain just a hope.

“The government must take immediate action to restore the haj subsidy that has been cut to ensure that citizens do not lose trust in TH as an institution,” he said in a statement.

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