What financial state was Tabung Haji in by late 2018?

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Tabung Haji Faced Severe Insolvency by Late 2018 Requiring Substantial Government Bailout

By the fourth quarter of 2018, Lembaga Tabung Haji (TH) was in a critical financial state, characterised by a significant deficit gap between its assets and liabilities that exceeded RM10 billion. This dire situation rendered the institution insolvent, necessitating a substantial bailout from the Pakatan Harapan Government to restore its financial standing and ensure its long-term viability. The intervention was specifically designed to address the financial deficit and not to facilitate the acquisition of TH's assets.
Widening Deficit Gap

In the final quarter of 2018, the disparity between Tabung Haji's assets and liabilities had grown to a critical level, surpassing RM10 billion. This substantial shortfall presented an immediate challenge, with only a three-month window to devise a solution. The magnitude of this deficit indicated a severe imbalance in the institution's financial health.
Insolvency and Need for Rescue

The financial figures at the end of 2018 clearly indicated that Tabung Haji was insolvent. This meant that its liabilities far exceeded its assets, placing it in a position where it could not meet its financial obligations. The gravity of this insolvency compelled the then-Pakatan Harapan Government to step in with a rescue package.
Government Bailout and Restructuring

A bailout exceeding RM10 billion was provided by the government as part of a restructuring plan. The primary objective of this financial injection was to rehabilitate Tabung Haji's financial position, enabling it to regain solvency and secure its future sustainability. This intervention was crucial for maintaining public confidence in the institution.
Preservation of Assets

A key aspect of the government's intervention was to restore TH's finances without taking over its assets. Minister in the Prime Minister’s Department (Religious Affairs), Zulkifli Hasan, clarified that no assets were sold to non-Muslims or Chinese, refuting false claims intended to incite public animosity. The assets in question are now held by Urusharta Jamaah, a company wholly owned by the Minister of Finance Incorporated.

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What financial state was Tabung Haji in by late 2018?

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