Minister in the Prime Minister's Department Datuk Dr Mohd Na'im Mokhtar (right), with Lembaga Tabung Haji managing director and chief executive officer Syed Hamadah Syed Othman, at a media briefing on Tuesday. (Photo by Zahid Izzani/The Edge)

KUALA LUMPUR (April 2): Lembaga Tabung Haji has declared a profit distribution of 3.1% after zakat for the financial year ended Dec 31, 2023 (FY2023), maintaining the same rate for the fourth consecutive year.

The total distribution amounted to RM2.72 billion, to be distributed to 9.15 million Tabung Haji depositors, compared with a distribution of RM2.64 billion to 8.8 million depositors in 2022, said Minister in the Prime Minister's Department Datuk Dr Mohd Na'im Mokhtar at a press conference on Tuesday.

Tabung Haji also declared zakat of 2.57% for FY2023, bringing total zakat payment to all state Islamic religious councils on behalf of depositors to RM101 million.

As at Dec 31, 2023, Tabung Haji's total assets under management stood at RM93.6 billion, while its fund size (deposits) amounted to RM89 billion.

While Tabung Haji did not announce its net income for the year, its managing director and chief executive officer Syed Hamadah Syed Othman noted that its performance in 2023 was driven by shariah-compliant investments in fixed income instruments, namely sukuk, which generated 52% of total income, while 24% was contributed by equity investments.

Meanwhile, the remaining 16% was contributed by investments in money markets, and 8% by investments in properties.

In terms of strategic asset allocation, Tabung Haji allocated 58% of its investments into fixed income instruments, 25% into equity investments, 10% into money markets, and 7% into properties.

No plans to increase overseas investment exposure

Syed Hamadah revealed that only 10% of Tabung Haji's investments are located overseas, complying with the strategic asset allocation set by the government.

Although he acknowledged that there might be more opportunities in overseas investments that could provide more competitive returns, Syed Hamadah maintained that the pilgrim fund does not intend to increase that exposure in the short to medium term.

"Our priority is to ensure safe deposits and stable returns, in line with the mandate given to Tabung Haji. This is achieved by being disciplined in complying with the strategic asset allocation that always focuses on the rate of return commensurate with the investment risk taken.

"For now, we have no plans to increase investments abroad, in line with the government's aspirations to support domestic investments," he said.

"More than half of Tabung Haji's investments are in sukuk or fixed income. And this is the basis for safe and recurring returns. Apart from that, Tabung Haji also has long-term strategic investments that can help increase returns for depositors for years to come," Syed Hamadah added.