TABUNG Haji depositors are not rushing to withdraw their money following low dividends from the fund last year, as they understand the true purpose of their savings are to prepare for the haj.

These depositors told The Malaysian Insight low dividends are not a reason to turn their backs on the fund.

A businessman, who wish to be identified as Mohamad, said depositors must understand TH’s true function.

“TH was started to help Muslims to fulfil their haj obligations. It is not a place for us to invest.”

Those who hoped to profit by their savings via dividends should invest elsewhere, he said at the TH headquarter in Kuala Lumpur.

Last week TH announced a dividend of 1.25% for 2018, the lowest in 25 years.

The payout to the fund’s 9.3 million depositors will amount to RM913 million, Minister in the Prime Minister’s Department Dr Mujahid Yusof Rawa said.

The low dividend is because the pilgrims’ fund is financially straitened after years of losses that were kept off the books and which only recently came to light, he said.

Muslims register with TH with a minimum deposit of RM1,300 to help finance their haj. They must maintain the minimum amount to keep their account with TH.

TH said recently it has 3.2 million would-be pilgrims on its waiting list. Some would have to wait 114 years for their turn.

Meanwhile, a civil servant said he would maintain his account with TH to support the institution but admitted he was withdrawing some of the money to invest elsewhere for better returns.

“I am not going to close my account with TH… just transferring some money to another place,” said the man who wish to be known as Khairul, 56.

Khairul performed his haj in 2009 but is keeping his account as he has done for the past 30 years. 

Some of his friends had wanted to close their accounts but he had talked them out of it.

“It will be difficult if everyone closes their account. I have already performed my haj but there are many others still waiting,” he said.

A pensioner from Negri Sembilan, who did not wish to be identified, said he would not be withdrawing his TH savings even though he would prefer to invest his money elsewhere.

“TH is very important to Muslims. Although my wife and I have performed the haj, we will continue to maintain our accounts with TH,” he said.

He added that his money in TH are savings for his children.

On Tuesday, TH CEO Zukri Samat denied depositors were making large withdrawals after the announcement of a disappointing dividend.

Zukri dismissed as baseless claims on social media that there was a rush to withdraw from the fund.

“Our branches are reporting normal transactions. In fact, they are also receiving additional deposits,” he said in a statement. – April 11, 2019.