Tabung Haji not a bank, should not come under BNM, says Umno Youth

 

The Cabinet has agreed for Tabung Haji to come under the purview of Bank Negara Malaysia.

PETALING JAYA: Lembaga Tabung Haji (TH) is neither a bank nor an insurance or takaful company to come under the purview of Bank Negara Malaysia (BNM), says Umno Youth.

Its chief Asyraf Wajdi Dusuki said it would be more appropriate for TH to be regulated by the Securities Commission instead.

He said the main activities of TH were to manage pilgrimage affairs and depositors’ funds.

TH, he said, was not a bank that offered loans, insurance or takaful to the public. It was also not exposed to credit risk, which was BNM’s main focus.

Asyraf said TH was free to offer profit-based hibah after deducting zakat, as long as it did not violate the Tabung Haji Act 1995, agreed by the board of directors and approved by the auditor-general.

The finance ministry previously announced that the Cabinet had agreed for TH to come under BNM’s purview, and to list TH as a “prescribed Islamic financial institution” under Section 223 of the Islamic Financial Services Act 2013.

It also said the Cabinet had agreed to strengthen the management and operations of TH as a whole through a number of avenues.

Should BNM choose to focus on TH’s administration, Asyraf proposed for the financial institution to be split into two main sectors – fund management and pilgrimage management.

He said this was to ensure that those who managed and spent the funds were from two different entities.

“This can further increase the level of effectiveness and efficiency of TH’s corporate administration,” he said. - FMT