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

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?

Not sure if this is really a feasible proposal. Once they open the flood gate the public would demand all the GLICs or even government agencies to be audited by Big 4. We can demand, but in reality, would it happen?

9.5 months after financial year end finally they make a note on why is 2015 Annual Report still not out yet

The annual report for 2015 (current) cannot be viewed in public due to still awaiting presentation to Parliament.
http://www.tabunghaji.gov.my/th-annual-report

I'll continue to watch the space. Esp with the developments in TH Heavy Engineering

I don't know, I only know in that 9.5 months,

Tabung Haji has a new CEO/MD

Bank Negara has a new governor

The depositors probably forgotten about the leaked letter and waiting for the bonus for 2016

In short.... life goes on, rakyat mudah lupa

Actually I think it's standard protocol for government agencies to go through parliament before annual report is published. Quite likely EPF went through that too. But EPF stuck to its timeline

Point is, cannot be so long la, things like this can plan ahead right?

If PLC doesn't publish their annual report on time their trading would be suspended wor.... Tabung Haji no need accountability?

A well researched piece

http://www.theedgemarkets.com/my/article/t...medium=facebook

2016 numbers seem even worse

It's finally up.

https://cms-th.s3.amazonaws.com/Lembaga+Tab...+Statements.pdf

For your reading pleasure

Anyway, for the non-accounting geeks, pay attention to
- other reserves in page 251
- Changes in fair value of securities available-for-sale on page 253 and 254

In summary, the unrealised loss widens. And the concern that BNM stated in the advisory letter continues, and in fact worsened

Correct, I think this year is even worse. But no one cares I guess

Thanks for following up on the news, I'm not so good with that

But I really don't get what the Tabung Haji Chairman is saying. The negative reserves means that as at 31/12/2016, if the fund liquidate all assets, the market value of the investments are RM3.1b short, as simple as that.

Of course assets has to be >liabilities, because in accounting 101, Assets-liabilities = shareholders' funds
In this case shareholders funds = depositors amount + profits not declared as dividends + any other reserves (the RM3.1b negative reserves sits here)

But I agree with him that AFS unrealised losses do not need to go through profit and loss account because it goes to Statement of Other Comprehensive Income and they can declare dividends out of profit and loss accounts. So things that are done is legally acceptable. But that is not the point of the BNM advisory letter, and not Rafizi's point as well

Reserves? You mean their 3.1billion negative reserves from last year?

The bonus portion only apply to a small portion I think; unlike ASB which applies to the entire amount. So 5%+3% bonus is definitely not 8% effective rate

While your statement is correct, I believe my statement is more refined. Refer to the screenshot from the annual report. The Haj bonus only limit to <RM10k even if you have yet to perform haj and not on the 100% deposit for depositors yet to perform haj.



Hence my comment of 5%+3% does not equate 8%. In the context of someone who have yet to perform haj and have RM100k in tabung haji; the dividends they would get is RM100k*5%+RM10k*3% haj bonus = RM5,300 thereabouts, which is effectively 5.3%

Don't you think the picture is now very different from what Tabung Haji shows on media 5%+3% bonus

Edit: See FAQ #7
https://cms-th.s3.amazonaws.com/16112016+TH...s+%28ENG%29.pdf

This post has been edited by dasecret: Feb 3 2017, 10:08 AM

Thought I'd keep tab using this thread. So as usual I continue to monitor if the Tabung Haji annual report is out. As of 3/8/2017, the 31/12/2016 annual report is not out yet.

They really need to improve on timeliness of reporting as one of the large Gov linked investment corporation (GLIC)

So the Tabung Haji annual report is out

I focuses more on financial statements. Numbers don't bluff (or bluff less)

https://cms-th.s3.amazonaws.com/Lembaga+Tab...l+Statement.pdf

Good news - the unrealised losses on AFS investments is less than 2015, only RM600m

Bad news - Retained earnings is negative RM700million at group, looks like it's due to negative retained earnings from the subsidiaries. The fund's retained earnings is still slightly positive at RM79million
Its associates - Pelikan and THHE both make huge losses during the year and worth much less than what the fund paid for
Investment properties recorded a RM300 million fair value loss which is 4.2% over total IP value, makes you wonder how properties can make such big loss
There's a RM300million goodwill in the group, can't really find details of which CGU this is from so can't tell if impairment may be needed.
The provision for retirement benefits of RM500million is also not funded, means no planned assets injected into the retirement plan. This is not a good idea. When they start to pay for the retirement benefits then they would scramble for cash as the fund fully paid out the earnings to the depositors. The returns to depositors would reduce in the future due to this cost as well. The provision amount might be significantly higher as the medical inflation rate used is only 4.5%-5.5%. We all know the actual medical inflation rate.
O/T: It's damn good employment benefit though, muslims should consider joining TH just for this benefit

Tabung Haji still doesn't like to impair its investments unlike EPF who would do that actively