CUTTING subsidies for haj pilgrims would stray from the original intent of the Pilgrims’ Fund Board, or Lembaga Tabung Haji (TH), which is to aid Muslims, especially poor ones, perform the pilgrimage to Mecca, said depositors.

They told The Malaysian Insight that they do not care if the fund pays out low dividends or “hibah”, as long as TH subsidises the cost of performing the haj, which can run up to RM20,000.

“The aim of TH is to help people perform the haj. That’s why we put our money into the fund. We wouldn’t simply put money into TH,” said pensioner Halim Rahma, referring to the government’s plan to reduce the subsidy.

Muslims generally deposited into the fund in the hopes of one day performing the pilgrimage and not to make money from high dividends.

“Ask anyone who puts money into TH, what is their aim? They will say, to perform the haj. We don’t say, I put in money so that I can earn high dividends.

“To me, getting high dividends is a bonus. I don’t care if I get low dividends as long as the fund helps people perform the haj,” said the 61-year-old, who is still awaiting his turn to perform the pilgrimage.

TH is expected to announce its 2018 dividends soon and the rate will be lower than previous years.

For 2017, it announced a rate of 4.5%, and a 1.75% special dividend for depositors yet to perform the haj.

Once depositors reach a certain threshold in their savings with TH, they qualify to perform the haj and are put on a waiting list.

TH subsidises more than half of the cost of the pilgrimage, which, for the past few years, has exceeded RM20,000 per person. This year, the actual cost is RM22,900, set by the Saudi government.

The fund has announced that each depositor need pay only RM9,980 for the pilgrimage this year, with the balance – RM12,920 – to be borne as a “subsidy”.

Depositor Shahleha Yusof, 59, disagreed with the government’s recent proposal to reduce the subsidy.  

“We know that the cost to perform the haj increases every year, but that is the reason we have TH. Maybe the new government does not understand the original aim of TH, and that’s why they want to reduce the subsidy,” said the housewife.

De facto religious affairs minister Dr Mujahid Yusof Rawa said the fund is looking into reducing the haj subsidy, as whether a Muslim can afford the pilgrimage “should be left up to the individual”.

Sukiman Ahmad, 60, said if this goes through, it will cause anger among Muslims.

“The Pakatan Harapan government’s decision is unwise. They have to remember that we are all voters, and if they continue doing this, they will last only one term.”

The haj subsidy is, in reality, the profits that TH makes by investing depositors’ money, he said.

“If Mujahid says TH does not want to bear the subsidy, what makes the fund different from any other bank? TH is aimed at helping us perform the haj. I was disappointed when I heard his statement.”

Muhamad Halim is confident that depositors will accept TH’s explanation if it declares low dividends this year.

However, the 52-year-old stressed that it should continue subsidising the cost of performing the haj.

“I don’t deny that some people use the profits from the dividends for other things, such as buying school supplies. I think we can understand the difficulties that TH is going through if they are clearly explained.

“But if they reduce the subsidy, people will ask, why was Barisan Nasional able to do it (subsidise the cost of performing the haj), but now, PH cannot?” – April 4, 2019.