Stronger TH Performance Driven By Reforms From Implementation Of RCI Recommendations - Economist
KUALA LUMPUR, Aug 7 (Bernama) -- The stronger financial performance of Lembaga Tabung Haji (TH) at present is the result of institutional reforms implemented since its restructuring, including the implementation of 75 per cent of the recommendations made by the Royal Commission of Inquiry (RCI), according to an economist.
Putra Business School MBA programme director Prof Dr Ahmed Razman Abdul Latiff said the improvement was also driven by stronger governance, more disciplined investment practices, and more effective risk management. He said this was reflected in TH's ability to generate more sustainable returns, recording investment income of RM4.64 billion last year - its best performance since 2018.
In addition, Ahmed Razman said profit distributions to depositors are now based on actual earnings, in accordance with the law and audited financial statements certified by the National Audit Department.
"Therefore, when we look at the RCI, we should regard it as a mechanism that has strengthened TH by learning from what happened in the past. The current situation no longer reflects the circumstances that TH faced previously. What we want to see is that TH has become better, more organised, better managed, and adheres to stronger governance," he told a Bernama TV programme on the RCI on TH yesterday.
On TH's investment strategy, Ahmed Razman said its focus on domestic investments has also generated favourable returns, supported by Malaysia's economic growth and a positive equity market over several consecutive years, helping to boost TH's investment income. "This enables investment analysis to be conducted more accurately, allows us to manage risks more efficiently, and is expected to result in more effective investment decisions because we have a better understanding of the performance of our domestic investments."
He said that besides taking legal action against those responsible for the fund’s past troubles, TH must continue restructuring its assets, optimise the management of underperforming assets, and improve the efficiency of its investment portfolio management. "I believe TH has implemented various initiatives over the past few years to improve its performance. By continuing this approach, it can ensure sustainable income without relying on any single asset or investment. Most importantly, it will help restore depositors' confidence in TH," he added.
On July 29, the 211-page RCI report on TH was released, detailing the findings of its investigation into the institution's management and operations covering the period from 2014 to 2020.
-- BERNAMA