By:
AHMAD MUJTABA KHAN
FAWAD AHMED KTK
 TH has been in operation since 1963, is viewed as one
of the most successful experiments in the
management of Hajj affairs in Islamic Ummah
 Today Tabung Haji’s total funds under management
are a staggering 23 billion Malaysian ringgit making it
the largest non-banking Islamic savings institution in
the world
 Despite the success, this model has not yet been
replicated in other muslim countries.
 a) A Tabung Haji-like national or regional institution would be a mutual
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savings institution it is the members (the savers) who benefit. The Board of
Trustees and the senior management are appointed by the government.
b) This strategy is consistent with social and financial inclusion policies, which
are aimed at empowering the poor and the minorities.
c) An institution like Tabung Haji anywhere would be an excellent way of
mobilizing local savings on a Shariah-compliant basis.
d) Tabung Haji is not only a savings and investment fund, but also an
educational institution thus preparing a would-be Haji on the culture, climate,
health provisions, attire and on the religious rituals of Haj.
e) A Tabung Haji-like model preempts fraud, abuse and exploitation .
f) This type of model and strategy is also a major confidence-builder and could
encourage Muslims to access the wider Islamic finance industry.
g) A Tabung Haji-like approach would give security, comfort and recourse in
law as members to ordinary Hajis who may have complaints or disputes. In this
way the organization would empower Hajis rather than marginalize them to
the mercy of the unscrupulous travel operators and Haj organizations.
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TH is an example how a "political will" with a
social vision can be translated into an action
program backed by an appropriate technical
knowledge.
the traditional methods of savings are not only
detrimental to the rural economy but also not
beneficial for the future pilgrims.
recommend that future pilgrims can save in a
financial institution without 'riba'.
profits derived could be given to the depositors,
helping them to perform Hajj earlier than
planned.
 besides, enable Muslim to invest and
participate in development process of the
country
 the recommendation captured the
imagination of PM, Tunku Abdul Rahman
 he saw the tremendous possibility of
development of Hajj management as an
institution and through an act of parliament.
 this is how a "political will" was translated
into an action program backed by a sound
technical study.
 Tabung Haji is an exclusive right to deal
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with the management of Hajj affairs in
Malaysia.
thereby ensuring the steady flow of
pilgrims' deposits each year
the monopoly status is actually derived from
the provision within the Tabung Haji Act,
which precludes any other individual or
entities to provide Hajj services in Malaysia
without the consent from the minister-incharge of Tabung Haji.
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Malaysia Government provides
guarantee to each depositor, thus
adding their confidence in the
organization
Besides, Tabung Haji encourages
saving not only for the purpose of
pilgrimage but also for other need of
depositors.
Thus, it has been successful in
attracting the saving of potential
Muslim depositors
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(e)
Simplification of procedures of deposit as well as
cooperation with other similar institution has
enabled Tabung Haji to mobilize tremendous
savings for investment purposes.
One can save through anyone of the following
means:
Any Tabung Haji office throughout Malaysia
Any post office throughout Malaysia
Monthly deduction by their employers
Mailing the deposit direct to TH head office
Saving scheme for dependent.
Shariah principles in Tabung
Haji Investment
Al-Musharaka
Shareholder will finance a project and the
dividends or profits are divided accordingly as
agreed by the parties.
Al Bai Bithaman Ajil
Financing with deferred repayment over a
specific period of time (deferred sale). Housing
and Motor Vehicle Loan.
Al-Mudharaba
An agreement to provide the capital by one
party and management expertise by the other
party.
Al-Qardul Hassan
In case of Benevolent Loan, the provider of capital is
guaranteed at least their principal amount.
In order to utilize the fund of depositors, tabung
haji uses the wadiah.
 It requires new depositors to fill in the Depositors
Personal and Nomination Form which includes the
statement of aqad izin.
 The principle of aqad izin under the law of the
tabung haji Act means that depositors agree to save
in Tabung Haji and give consent for it to manage
their saving for investment purposes.
The profit derived from these investment is
distributed among the depositors in the form of a
bonus.
TH provides credit facilities to its staff for the
purpose of buying a house/vehicle based on the
principle of “bai bithaman ajil
 Before distribution of dividends, TH will pay
business zakah from the profits earned during the
zakah year and the amount of working capital at
the end of the zakah financial year (hijrah)
 The rate is 2.5 percent on the aggregate of profits
earned.
 The pay on behalf of depositors based on aqad izin
where depositors are considered to be providers of
funds for the business and investment activities.
 Investment in shares mainly in quoted shares of the
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stock exchange (equity participation).
Investment in subsidiary companies ( plantations,
transport trading, housing and property management)
Investment in Land and Building (investment in
property market in the constructions of building for
office and rental purposes etc).
short term investment in Bank Islam.
TH Travel & Services Sdn. Bhd. (hajj, umrah, and tour
services sector)
 TH emphasizes that investment activities are not
involved in anything which is contrary to Islam.
 Does not invest in sectors such as banking,
insurance and Hotel.
 Will not invest in companies that are involved with
activities which are prohibited by Islam
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THE END
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THANKS