Tabung Haji Zakat Payments Syariah-Compliant and Valid, Depositors Assured, Says Minister

KUALA LUMPUR, Aug 11 — Depositors of Lembaga Tabung Haji (TH) have been assured that their zakat (tithe) obligations have been fully fulfilled in a valid, Syariah-compliant manner.

Minister in the Prime Minister’s Department (Religious Affairs) Dr Zulkifli Hasan gave the reassurance during a Special Sitting of the Dewan Rakyat on the Royal Commission of Inquiry (RCI) report into TH today.

Addressing concerns over past practices, Zulkifli explained that TH’s Syariah Advisory Committee (JPS) ruled on Sept 2, 2020, that zakat payments made on behalf of depositors prior to the adoption of the wakalah concept in 2019 were valid and aligned with Islamic law.

He pointed out that the decision aligns with a ruling by the National Fatwa Committee for Islamic Religious Affairs Malaysia dated May 3, 1979, which determined that while TH as an entity is not subject to zakat, it is mandated to pay zakat on behalf of its depositors—an obligation the fund has consistently fulfilled.

Regarding zakat disbursements during the operation of the Wadiah Yad Damanah savings contract between 2016 and 2019, Zulkifli noted that payments were made as collective business zakat (khultah) derived from the pool of depositors’ invested funds.

In response to RCI recommendations to refer TH’s zakat practices to national Islamic authorities, the minister confirmed that the matter was presented to and endorsed by the National Council for Islamic Religious Affairs (MKI) Muzakarah Committee in June 2024, and subsequently submitted to the 267th Meeting of the Conference of Rulers in October 2024.

“Therefore, depositors need not worry as all matters relating to the fulfilment of your zakat obligations have been duly carried out by TH in an orderly manner and in accordance with Islamic law,” Zulkifli assured the Dewan Rakyat.

He added that TH’s entire zakat framework continues to be monitored and guided by comprehensive Zakat Guidelines overseen by Islamic finance and Syariah experts on the TH JPS.

–NMT