How does targeted assistance align with TH’s plan to reduce subsidies since 2022?

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Targeted Haj Financial Assistance Aligns with Subsidies Reduction Strategy

Tabung Haji (TH) is implementing a targeted Haj financial assistance policy for the 1446H/2025M pilgrimage season that directly supports its broader strategy to gradually reduce overall subsidies since 2022. This approach aims to ensure TH’s long-term financial sustainability while striving to maintain favourable investment returns for depositors, a key responsibility of the institution. The estimated RM261 million allocated for this assistance reflects a shift towards more focused support, distinguishing between different income groups.
Redefining Assistance for B40 and M40 Pilgrims

For the 1446H/2025M season, muassasah pilgrims in the B40 income group will receive RM17,300 per person from TH, supplemented by an additional RM1,000 from the government, totalling RM18,300. This amount covers approximately 55 per cent of the total Haj cost, meaning B40 pilgrims will pay RM15,000. Similarly, M40 pilgrims will receive RM9,800 in financial assistance from TH, covering 29 per cent of the total cost, with their payment set at RM23,500.
Maintaining Financial Sustainability Through Subsidy Reduction

The reduction in blanket subsidies is a deliberate move to safeguard TH’s financial stability. By narrowing the scope of financial aid, the institution aims to minimise the depletion of funds derived from investment returns. This strategy underscores TH’s commitment to providing good and sustainable returns, which is considered a core responsibility, while ensuring the overall health of the fund for all depositors.
Full Cost Payment for T20 Pilgrims and Cost Containment Measures

Pilgrims in the T20 income bracket, earning at least RM15,000 monthly, are expected to pay the full Haj cost of RM33,300 per person, as they do not qualify for financial assistance. Concurrently, TH has successfully maintained the overall Haj cost for muassasah pilgrims at RM33,300 for the 1446H/2025M season. This cost containment has been achieved through measures such as securing long-term flight contracts despite rising fuel prices and signing multi-year agreements with hotel operators to stabilise accommodation costs in Mecca and Madinah amidst significant development.

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How does targeted assistance align with TH’s plan to reduce subsidies since 2022?

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