Anwar backs tighter oversight of Tabung Haji investment arm

Prime Minister Anwar Ibrahim has endorsed a proposal to place Lembaga Tabung Haji’s investment activities under tighter statutory supervision, either by the Securities Commission or Bank Negara Malaysia.

Anwar said the reform should strengthen oversight of the pilgrimage fund and help prevent abuse of power and other negative elements in its management. He said he supported the proposal after receiving a briefing from Tabung Haji’s management.

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This includes the proposed amendment to the Tabung Haji Act 1995 so that its management is more tightly controlled, either by the SC or BNM, and does not escape oversight as happened previously.

The plan includes a possible amendment to the Tabung Haji Act 1995. Anwar said stricter control would help ensure the institution did not escape oversight as it had in the past. The proposal forms part of a wider reform agenda for the fund.

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After detailed consideration, we concluded that it would be more relevant for TH’s investment arm to be regulated by the SC.

Tabung Haji is refining a new regulatory framework that would place its investment operations under the Securities Commission. Chairman Tan Sri Abdul Rashid Hussain said a joint task force had reached the decision after almost six months of detailed consideration. The task force included the Securities Commission chairman and the governor of Bank Negara Malaysia.

Abdul Rashid said the move responded to recommendations by a royal commission of inquiry, which stressed that external factors linked to the management of Tabung Haji’s funds should be monitored by a trusted institution. He said placing the investment arm under the Securities Commission would be more relevant and could fulfill nearly 90 percent of the commission’s recommendations. He also stressed that Bank Negara would not be completely excluded from the institution’s operations.

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When that happens, I think almost 90 percent of the RCI recommendations will have been implemented.