Dewan Rakyat Urges Swift Amendments to Tabung Haji Act to Curb Political Interference and Boost Governance

KUALA LUMPUR, Aug 11 — Lawmakers across both sides of the august House have called for immediate amendments to the Tabung Haji Act 1995 (Act 535) to expedite the implementation of the Royal Commission of Inquiry (RCI) recommendations, focusing specifically on curbing political appointments and stripping ministerial executive control over the pilgrim fund.

During the Special Dewan Rakyat Sitting to debate the declassified RCI report on Lembaga Tabung Haji (TH), MPs argued that legal reforms are imperative to reinforce governance, restore board independence, and guarantee that senior management appointments are strictly determined by professional merit rather than political patronage.

Datuk Shahelmey Yahya (BN-Putatan) proposed repealing Section 10 of Act 535, which grants the Minister in charge of religious affairs the power to issue general directives to TH, asserting that the provision crippled corporate governance and allowed political priorities to override institutional interests.

“The concentration of powers outlined under Section 10 of Act 535 contributed to episodes of failure that affected TH’s performance and financial position. An institution cannot achieve excellence when political influence is mixed into decision-making,” Shahelmey told Parliament, adding that appointments to the board must be merit-based to preserve executive credibility.

Former Prime Minister Tan Sri Muhyiddin Yassin (PN-Pagoh) urged the government to implement all RCI recommendations firmly and continuously, advocating for enhanced legal frameworks, stronger regulatory oversight by Bank Negara Malaysia or equivalent statutory bodies, the creation of an independent investment committee, and a comprehensive portfolio restructuring.

Echoing the call for structural reform, Syed Saddiq Syed Abdul Rahman (MUDA-Muar) emphasized that amending Act 535 is necessary to establish an institutional barrier against political patronage inside the fund.

“Amend the Tabung Haji Act and institutionalise it to ensure there are no more political appointments,” Syed Saddiq stated, stressing that transparent, merit-driven appointments are vital to prevent past governance failures from recurring.

Highlighting the human impact of mismanagement, Mohamad Shafizan Kepli (GPS-Batang Lupar) urged Parliament to give serious attention to RCI recommendations aimed at tightening board selection criteria, excluding active politicians, and minimizing conflicts of interest across TH and its subsidiaries.

“We do not want TH, as an Islamic financial institution, to be crippled by weak financial governance. We must not allow ordinary people who have saved for years to perform the haj to become victims of these governance weaknesses,” Shafizan warned inside the chamber.

The imperative to amend Act 535 and end political appointments was echoed by several other parliamentarians during the session, including Datuk Azman Nasrudin (PN-Padang Serai), Young Syefura Othman (PH-Bentong), Datuk Seri Hasni Mohammad (BN-Simpang Renggam), and Datuk Mohd Suhaimi Abdullah (PN-Langkawi).

The special parliamentary sitting was convened following the government’s decision to declassify the 211-page TH RCI report on July 29. The report detailed operational and administrative failures from 2014 to 2020 while proposing 25 key reforms, 75 per cent of which TH had already implemented as of July 30.

–NMT