Seven of the 14 troubled investments involving Tabung Haji resulted in total losses.

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Tabung Haji Suffered Total Losses in Seven Troubled Investments

Seven of the 14 problematic investments identified by the Royal Commission of Inquiry (RCI) concerning Tabung Haji have resulted in complete financial losses. Among these, investments associated with the Saudi Arabian firm Al-Rawda Real Estates Development incurred the most substantial losses.
Al-Rawda Deal Led to Significant Financial Deficit

The most significant losses were recorded from a lease agreement with Al-Rawda Real Estates Development, a company based in Saudi Arabia. Between 2015 and 2017, Tabung Haji disbursed RM1.5 billion for a lease involving four hotels in Madinah intended for Malaysian haj pilgrims. This agreement proceeded without a bank guarantee or completed due diligence from Al-Rawda, reportedly relying solely on a personal note from an individual.
Default on Lease Payments Escalated Losses

Al-Rawda began failing to meet its rental obligations to Tabung Haji starting in the first quarter of 2019. This default ultimately led to a cumulative loss of RM1.86 billion for Tabung Haji as of 2024. The circumstances surrounding the deal, particularly the reliance on an individual's personal note instead of formal guarantees, contributed to the financial downfall.
RCI Identified Fourteen Troubled Investments

The Royal Commission of Inquiry (RCI) had previously identified a total of fourteen investments that were deemed troubled. The revelation that seven of these have resulted in total losses underscores the extent of the financial difficulties encountered by Tabung Haji in managing these specific ventures.

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Seven of the 14 troubled investments involving Tabung Haji resulted in total losses.

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