Tabung Haji able to pay higher hibah this year -- economist

Exclusive report by Rosemarie Khoo Mohd Sani

KUALA LUMPUR, Dec 4  -- Lembaga Tabung Haji (TH), which recorded a healthier financial performance in the third quarter (Q3) of this year, will be able to announce a better hibah (dividend) for this year, said an economist.

Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said besides, it was also positive of the depositors’ support with over 87,000 new savings accounts opened. 

"To some degree, this could reflect better confidence among Muslims in Malaysia. While hibah could be better this year, depositors need to be cognisant of the prospects for the financial markets which have been volatile following the ongoing trade war. 

"Therefore, one should set a reasonable expectation for the hibah rate as prospects for the financial markets to fluctuate remain," he told Bernama. 

Mohd Afzanizam described TH’s Q3 performance as decent with total assets continued to surpass liabilities by RM2.3 billion which is higher compared with RM1 billion in 2018.

TH posted a net profit of RM500 million in Q3 of 2019, boosting profit for the first nine months to RM1.3 billion.

The pilgrims fund, in a recent statement, said the positive outcome resulted from ongoing cost-saving measures undertaken by its management.

It recorded earnings of RM900 million in the same quarter, increasing revenue for the first nine months of 2019 to RM2.1 billion.

TH said the funds were generated mainly from fixed income asset investment (RM1.1 billion), real estate investment (RM400 million), equity investment (RM300 million), and Islamic money market instrument investment (RM300 million).

-- BERNAMA