Finance Minister II: Seven of Tabung Haji’s 14 troubled investments ended in total losses, Saudi-based deal caused biggest hit

Finance Minister II: Seven of Tabung Haji’s 14 troubled investments ended in total losses, Saudi-based deal caused biggest hit



Finance Minister II Datuk Seri Amir Hamzah Azizan said seven of the 14 troubled Tabung Haji investments identified by the Royal Commission of Inquiry resulted in total losses. — Bernama pic


Summary

• In a statement to the Dewan Rakyat, Finance Minister II, Datuk Seri Amir Hamzah Azizan, revealed that seven out of 14 problematic investments by Tabung Haji incurred substantial losses, with the most significant stemming from a deal with Saudi-based Al-Rawda Real Estates Development.
• The investment involved a RM1.5 billion lease agreement for four hotels in Madinah from 2015 to 2017, intended for housing Malaysian haj pilgrims, but resulted in RM1.86 billion losses due to Al-Rawda's payment defaults since 2019.
• The decision was made without full due diligence or a bank guarantee.

First Published: Tuesday, 11 Aug 2026 8:37 PM MYT


KUALA LUMPUR, Aug 11 — Seven of the 14 troubled investments involving Tabung Haji identified by the Royal Commission of Inquiry (RCI) resulted in total losses, Finance Minister II Datuk Seri Amir Hamzah Azizan told the Dewan Rakyat today.

Amir Hamzah said that among the seven, investments linked to Saudi Arabia-based property development and management firm Al-Rawda Real Estates Development recorded the highest losses.


From 2015 to 2017, Tabung Haji reportedly paid RM1.5 billion as part of a lease deal with Al-Rawda involving four hotels in Madinah designated to house haj pilgrims from Malaysia.


Amir Hamzah said that despite Al-Rawda failing to provide a bank guarantee or complete due diligence, Tabung Haji entered into the deal, relying only on an individual’s personal note.


He, however, did not name the individual.


“Al-Rawda began defaulting on its rent payments for Tabung Haji since the first quarter of 2019, leading to RM1.86 billion in losses as of 2024,” Amir Hamzah said during his winding-up speech on the Tabung Haji RCI report today.

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