Royal Commission Recommends Stricter Tabung Haji Board Appointment Rules

A Royal Commission of Inquiry (RCI) into Tabung Haji (TH) has recommended tightening the requirements for individuals appointed to the Lembaga Tabung Haji (LTH) Board. The commission proposes amending Section 6(2) of the Tabung Haji Act 1995 to ensure that only qualified individuals with relevant expertise are selected.

Currently, Section 6(2) of the Act stipulates that a board member must be a Muslim and a Malaysian citizen. However, the RCI argues that these criteria are too broad and insufficient for the proper governance of an increasingly complex Islamic financial institution. The commission views the existing criteria as inadequate for appointing members to the board.

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The commission, after reviewing Act 535, found that the only provision setting specific criteria for board membership is stipulated in Section 6(2) of Act 535, which states 'No person shall be appointed a member of the Board unless he is a Muslim and a Malaysian citizen.'

To address this, the RCI recommends that the government examine existing legislation, including the Employees Provident Fund Act 1991 (Act 452), the Inland Revenue Board of Malaysia Act 1995 (Act 533), and the Securities Commission Malaysia Act 1993 (Act 498). This review aims to establish clearer and more specific criteria for potential board members, ensuring they possess the necessary qualifications and expertise.

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The commission is of the view that Act 535, which has been in force since February 16, 1995, needs to be revitalized and improvements should be made to the provisions of Section 6(2) to further clarify the specific criteria that individuals eligible and considered for appointment as board members must possess. The existing criteria in Section 6(2) of Act 535 are currently too general and inadequate.