There is continuous support given by the depositors and moving forward, digital services will become the fund’s focus, says MD/CEO

by NUR HAZIQAH A MALEK/ pic by MUHD AMIN NAHARUL

LEMBAGA Tabung Haji (TH) has recorded a total of RM1.55 billion in investment income for the first half of the year (1H20), supported by the investment in sukuk and stocks.

TH group MD and CEO Datuk Nik Mohd Hasyudeen Yusoff said the company’s biggest challenge is in managing its investment to protect the interests of depositors, on top of facing the impact of the Covid-19 outbreak.

“We have taken steps to identify the impact of Covid-19 on investment through periodic monitoring. In terms of operations, TH needs to be more efficient by improving services and reducing costs,” he said in a statement yesterday.

He acknowledged the continuous support given by the depositors throughout the challenging time and that moving forward, digital services will become the fund’s focus.

“The depositors’ trust and support for TH remained intact with a total deposit of RM73.86 billion as at June 30 compared to the RM69.42 billion recorded as at Dec 31, 2019.

“During the same period, more than 123,000 new savings accounts were opened,” he said.

The asset investment has contributed as much as RM1 billion or 65% from the pilgrimage fund’s total investment for the period of January to June this year, whereas property investment has gained as much as RM204.57 million in earnings, Islamic money market instrument investments accounted for RM187.13 million and equity investments (RM150.27 million).

The increase in earnings has generated a net profit of RM1.25 billion from the RM849.66 million recorded in the same period last year, while the fund’s total assets have also exceeded its liabilities by RM1.86 billion as of June 30.

The fund is currently preparing the management of haj pilgrimage which may be more complicated in the coming year due to the delay caused by the pandemic, including ways to deal with new challenges of delivering the services while taking into consideration the new norm caused by the Covid-19 crisis.

The virus outbreak had placed a significant impact on the world economy and financial markets, which also hit the already weakened global economic environment due to the low crude oil prices and escalating trade wars between the world’s two major economies.

The active pilgrimage and investment management institution was also exposed to the impact, however, the financial market situation is moving towards recovery as economic activities are now allowed, alongside measures announced by the government’s economic stimulus plan.

Bursa Malaysia’s stock market, which fell over 23% during the pandemic, has returned nearly to its original level, which closed at 1,500.97 points on June 30, 2020, a 5.5% difference from the 1,588.76-point level on Dec 31, 2019.