Getting really confused.

BNM issued a warning letter stating the $ dire strait the fund is in.

Now stated the highest profit in its history!

1+1=11 now?

Just wondering, how much would it cost for a Haj trip?

1st timer - RM9,980

2nd time & above - RM18,890 (full price, no TH subsidy )

http://www.tabunghaji.gov.my/dalam-negara

I see. Thanks.

Thus the need to have a fund to save and grow.

Ini untung atas angin consider haram lah.

really? nobody mention anything also.. even mufti all silence only

Lembaga Tabung Haji (LTH) has called for an end to the baseless allegations being levelled against it and which have stirred up confusion, while impacting unity among Muslims.

In a statement today, the LTH stressed that its financial position was strong with revenue of RM4.47 billion and realised profit reaching RM3.53 billion for the financial year 2015.

"From 2009 to this year, TH has retained RM9,980 as the haj fee for each pilgrim. For 2016, the actual haj cost rose to RM18,890, so the subsidy was RM8,910.

"TH is expected to bear a subsidy of RM160 million for this haj season.

"The clearly strong financial and investment position of TH has enabled the LTH to bear the haj subsidy of RM815 million over the past decade," it added.

Meanwhile, depositors have been advised to check their bonus payments at TH counters or via the ATM machines of its strategic banking partners (Bank Islam, Bank Rakyat and Maybank Islamic) by the latest, Feb 10.

The divvy credited already? I checked yesterday via bank rakyat but seems offline and transaction rejected. Hope for good news today

Yes.
Can see via maybank2u if you link your TH with maybank

wow, thanks

Red flags for TH investors to note:

Firstly, its accounts are audited by a govt agency. How independent and capable is the agency in comparison with professionally managed and recognised accouning firms?

Secondly, it appears to treat unrealised losses in investments like quoted shares by charging it directly to reserves. This practice tends to allow it to declare higher bonuses as the current year's profit is unaffected

Seriously, the question of the manner in which it declares bonuses has to be examined in the light of Malaysian law. If this is not reviewed properly, there will be serious repercussions for all Malaysians financially, not only the depositors.

cannot do much. u want to perform hajj 1st time at subsidized rate, then needed to deposit with TH.

TH good or bad. pay dividend using reserves etc. is non issue

If TH had complied with IFRS 139 which requires unrealised losses on investments as at 31 December 2015 to be deducted from the current year's profit, it would not have been able to declare the bonus which it recently did. TH's unrealised losses are deducted from accumulated reserves which is not in accordance with IFRS 139.
So how did it get a clean audit report? Is it exempted from complying by our MOF?

I don't think the statement above is correct. Held for trading financial assets would go through profit or loss. But tabung haji designate the securities as available for sale

Fair value changes on AFS assets are recognised directly in equity, through the statement of changes in equity, except for interest on AFS assets (which is recognised in income on an effective yield basis), impairment losses and (for interest-bearing AFS debt instruments) foreign exchange gains or losses. The cumulative gain or loss that was recognised in equity is recognised in profit or loss when an available-for-sale financial asset is derecognised. [IAS 39.55(b)]
http://www.iasplus.com/en/standards/ias/ias39

But it is factually correct that the AFS reserves in the 2014 financial statements is negative and therefore I can understand central bank's concern. so it boils down to whether or not tabung haji can deliver such dividends solely based on the distributable reserves without considering the negative AFS reserves.
Having said that, we r just speculating as the 2015 financial statement is not yet published

In Malaysia, section 365 of the CA 1965 allows dividends to be paid from current profits. Hence to ensure a high dividend payout classifying its financial investments as AFS allows for current profits to be unaffected by unrealised losses as they pass through reserves. This leads us to the possible scenario of negative reserves but high dividend payout. Hence depositors will not get paid in full theoretically if they withdraw enmasse. I see 2 weaknesses in our system here:

1. The possible loophole of reclassification of financial assets to AFS whenever there are significant unrealised losses in order to ensure depositors are happy with the bonus

2. Our CA 365 on dividends is inadequate and needs to be reviewed as IFRS developments has now created a situation where key stakeholders are not adequately protected

What do you think?

1. There are accounting rules on re-designation. I won't elaborate here since most would not be able to understand. The gist is, you cannot change happily year in year out to make your books look nice.
2. The new companies bill is supposed to be passed by parliament soon. I didn't follow the draft closely and hence won't be able to comment.

But in the end, is it really the rules that have a problem or the people who decided how they want to comply with these rules/ finding a loop hole?

Who is the external auditor of TH?

None other than our govt agency, the auditor general

simpanan tbg haji masih selamat. tapi cuma muslim saja yg boleh buka akaun..

Lembaga Tabung Haji (LTH) has stressed that its accumulated profit remains positive at RM609 million compared to the RM293 million at end-2014 and despite the payment of the bonus for 2015.

"This is in line with Bank Negara Malaysia's call for LTH to review its existing reserve policy.

"It needs to be reiterated that the 2015 bonus was paid from the current year's profit and not by utilising reserves,' the LTH said in a statement today.

The fund management company has credited RM3.2 billion as bonus payment to its 8.85 million depositors since last Monday.

The LTH said its financial statement was prepared based on the financial reporting standards published by the Malaysian Accounting Standards Board and follows the syariah principles.

In order to provide greater credibility and show to the investors and the Malaysian public that TH is sincere, the Board of TH should recommend that the auditor of the org should be from a non govt agency ie change the auditor for the next financial year.