What is the current status of the RM12.5 billion Tabung Haji debt settlement?

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Government Yet to Fully Settle RM12.5 Billion Tabung Haji Commitment

The Malaysian government has not yet fully settled its RM12.5 billion financial commitment to Lembaga Tabung Haji, with only a fraction of the amount settled through property assets and the remainder replaced by a new sukuk maturing in 2036. This ongoing situation stems from a 2018 financial restructuring designed to address Tabung Haji's past losses.
Partial Settlement via Property Assets

Of the RM12.5 billion owed to Tabung Haji, only RM965 million has been settled through the transfer of property assets. These assets include a plot of land located at the Tun Razak Exchange (TRX) and plantation land situated in Sarawak.
Restructuring Involved Sukuk Issuance

The financial restructuring, approved in late 2018, involved Urusan Jamaah Sdn Bhd (UJSB), a company wholly owned by the federal government, taking over loss-making Tabung Haji assets. In exchange, UJSB issued two series of sukuk to Tabung Haji. The federal government was then obligated to redeem these instruments upon their maturity, which were initially scheduled for 2026 and 2029.
Sukuk Maturity and Deferrals

One of the UJSB sukuk instruments, Sukuk UJSB Series 1, was due to mature on May 29, 2026. However, the original RM12.5 billion commitment has seen the remaining RM11.5 billion replaced with a new sukuk that is now set to mature in 2036, indicating repeated deferrals of the government's financial obligation.
Budgetary Allocations and Unpaid Funds

Successive administrations have approved annual budget allocations since 2019 for the redemption of the UJSB sukuk, including at least RM17.8 billion approved in April 2019. Despite these approvals, RM1.5 billion allocated under Budget 2021 was reportedly not paid to Tabung Haji, with the government citing economic recovery needs post-Covid-19.

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What is the current status of the RM12.5 billion Tabung Haji debt settlement?

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