PETALING JAYA: Tabung Haji (TH) depositors will still be protected, says the Finance Ministry.

       In a statement on Sunday (July 18), Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said that the status quo will remain for depositors.

       "In other words, depositors will continue to enjoy the government's assurance as stated under the Tabung Haji Act 1995,” he said.

       Zafrul added that all investment activities by TH will need to be Syariah compliant and investment assessments will be conducted via a detailed and transparent process, as practiced by other institutional funds.

       “This will be done with the creation of an investment panel, headed by experts in the investment and financial fields," he said.

       He added that regulation by Bank Negara Malaysia (BNM) is an important component in strengthening TH as a resilient Islamic institution within the country's financial ecosystem.

       Zafrul said that the proposed regulatory framework for TH by BNM will be "fit-for-purpose regulation".

       "The check and balance approach has already been done in other industries and market capital. In the Syariah context, the BNM has a Syariah advisory council headed by Shariah scholars and individuals with international experience and knowledge," he said.

       Previously, Deputy Prime Minister Datuk Seri Ismail Sabri Yaakob announced that a Royal Commission of Inquiry will be set up to investigate issues related to Lembaga Tabung Haji that arose from audits carried out in the board.