ASSETS worth RM1.219 billion have been disposed of by Lembaga Tabung Haji as of June 30, Deputy Minister in the Prime Minister’s Department Fuziah Salleh told the Dewan Rakyat today.

These included shares worth RM803.9 million, financial instruments with a book value of RM405.3 million and property worth RM10.4 million.

Total gains from the disposal amounted to RM61.1 million.

She said the organisation does not only depend on asset sales for income, but earnings are also generated through dividends, sukuk holdings, lease arrangements and bank deposits.

Between January and June, it recognised RM1.32 billion in earnings on the back of contributions from fixed asset investments (RM663 million), real estate (RM292 million) and Islamic financial market instruments (RM199 million).

Anchored by cost optimisation measures, the pilgrim fund reported a net profit of RM815 million for the first half of 2019.

Fuziah, who is Kuantan MP, said the RM1.32 billion income has been re-invested into other asset classes to generate sustainable returns.

These included investments into equities listed on Bursa Malaysia that has the potential for high dividends.

“As of June 30, Tabung Haji’s financial position remains strong as the value of its assets has exceeded its liabilities.”

Total assets amounted to RM74 billion while the total liabilities stood at RM72.2 billion.

“Besides equity, Tabung Haji is looking to invest in real estate and sukuk.”

Focusing on more stable asset classes has allowed Tabung Haji to mitigate pressures from the US-China trade war, she added.

Meanwhile, she said none of the assets transferred to the Special Purpose Vehicle (SPV) has been sold thus far.

She was responding to Mustapa Mohamed’s (Jeli-BN) question on whether the government intends to make public the report on assets transferred to the SPV.

Fuziah said the government will look at balancing deposits based on the needs of contributors in the future.

“This is because there are two types of depositors, those who save for their pilgrimage and those who want to profit.”

She said this in response to a question by Hasan Ariffin (Rompin-BN). – October 16, 2019.