It instead advised the Pakatan Harapan (PH) government to keep guarantees on all deposits without an upper limit, which would reduce the possibility of withdrawal of funds by high-net-worth individuals and decrease its financial viability.
“It (the government) should complete a full audit of Tabung Haji’s accounts and the valuation of all its assets before selling off RM20 billion in assets for IOU promissory notes to special purpose vehicles.
“We are concerned that the transfer of the assets out of Tabung Haji will be a prelude to an even bigger asset carve-out which will result in a Tabung Haji that is a shadow of its former self,” MTEM said in a statement.
Due to increasing fiscal pressure, it said, the government might decide to sell off Tabung Haji’s remaining assets, which would be easier than a fundamental restructuring that would take a lot of time and funding.
It said it was concerned over recent revelations of financial improprieties at Tabung Haji as well as the proposed plans for its reform.
“Tabung Haji is no longer just an institution that manages Malaysians who go on the haj pilgrimage. It has become one of the nation’s premier investment funds.
“The combination of shariah-compliant investing, automatic zakat payments and subsidised haj pilgrimage packages has made Tabung Haji a popular investment path for Malaysian Muslims,” it added.
However, MTEM fully agreed that the investment arm of Tabung Haji be placed under Bank Negara Malaysia’s (BNM) oversight.
“Only good things will come out of this as BNM is universally recognised as one of the best run public institutions in Malaysia.
“BNM’s integrity and track record in managing Malaysia’s monetary system will ensure that whatever mistakes were made by Tabung Haji in the past are not repeated.”
It also suggested that the government take a step back and evaluate all options and advice before proceeding to restructure Tabung Haji in ways that would permanently damage the benefit and value it brings to Muslims in the country.
“It is best to suspend the restructuring of Tabung Haji until an accurate picture of Tabung Haji’s finances is formed,” it said, adding that the PH government must handle any restructuring of its assets with great caution.