TABUNG HAJI AS ISLAMIC FINANCIAL INSTITUTIONS

Muhammad Fikri Bin IshakMuhammad Fitri Bin Ishak

Mohammad Fareez Izzuan Bin Mohd Fazel

Vision & Mission Vision

THE PILLARS OF SUCCESS UMMAH; HAJJ MANAGEMENT DISTINCTION

MissionEconomic empowerment of UmmahAlways actively searching for global and strategic

investment for continued growthEnriching mobilize capital depositorsProviding excellent service and continuityFacilitating and managing completing Hajj Pilgrims

Towards MabrurProvide competitive Yields, Halal and Toyyiban

Tabung Haji ServicesDepositorHajj ManagementHospitalityInvestment

DepositorBenefit

Islamic SyariahHolyCompetitive DividenZakat PaidTax ExemptGuaranteed by the governmentUnlimited production

ConditionsMuslim IndividualsCitizen of MalaysianPermanent ResidentMinimum Initial deposit of RM2.00 cash

Hajj ManagementPilgrims Management and Fund Board Act, ‘Tabung Haji”

will manage:Medical certification of fitnessRegistration for the HajjIssue of Hajj Passport and Hajj visaHajj guidance coursesTransportation arrangements to and from the Holyland.

Under the same act:With approval of the Minister of Hajj Affairs, allow qualified

and experienced parties (private organizations) to make private arrangement for Hajj transportation by air on condition that such parties deposit with the Government an amount to be determined by board. The deposit to ensure that pilgrims will not be stranded during their pilgrimage.

HospitalityTAHA network offers accommodation, halls

and seminar rooms are comfortable at reasonable price.TAHA D’Bayu, Kota Kinabalu (2000)TAHA D’Mutiara, Bayan Lepas (1994)TAHA D’Kelana, Kelana Jaya (1983)

InvestmentEquityFixed IncomePropertiesAlternative Investment Subsidiaries Company

EquityObjective

Generate competitive long-term returns through share trading gains and dividend income in line with the levels of risk while ensuring equity investment portfolio equal to the current market condition.

(Cont.) EquityEquity Investment Division

Fixed IncomeGenerate stable returns and recurring

revenue for the funds invested with the drafting of the securities portfolio of medium-term fixed-income investments. Investment strategy focused on instruments that offer a degree of risk and the corresponding rates of return consistent with the investment policies and guidelines TH

Instruments Fixed Income Portfolio

Fixed Income Investing Process

Alternative InvestmentAlternative investment involves investment

funds in various asset classes managed by external parties. Alternative investment objective is to provide a more competitive alternative returns by adopting external expertise

Key Selection Criteria Foreign Equity Fund Manager LoggedSyariah compliant Total assets under managementStrength of organization and human

resourcesPhilosophy concerted and strong investment

processRisk management capabilitiesGood performanceCompetitive fees

Key Selection Criteria Foreign Equity Fund Manager not LoggedSyariah compliantFund raising capabilitiesExperience main management Funding criteria and competitive feesInvestment commitments from fund

managersRisk management capabilitiesGood performance

Subsidiaries CompanyPlantation

TH Plantations BerhadTH Agro Sdn BhdTH Bakti Sdn BhdTH Estates ( Holding) Sdn BhdTH Indo Industries Sdn BhdTH Indopalms Sdn BhdTH Ladang Sabah & Sarawak

BankingBIMB Holdings BerhadBank Islam Malaysia BerhadSyarikat Takaful Malaysia Berhad

Subsidiaries Company (cont.)Properties & Construction

TH Properties Sdn BhdInformation technology

Theta Edge BerhadServices

TH Travel & Services Sdn BhdTH Hotel & Residence Sdn Bhd

FoodTH Global Services Sdn Bhd

Support Marine IndustryTH Marine Sdn BhdTH Alam Holdings (L) Inc

Shariah Principles in Tabung Haji InvestmentAL-Musyaraka

Shareholder will finance a project and the dividends or profits are divided accordingly as agreed by the parties.

With this instrument, financing requirement can be securitized through the issue of Shahadah Al-Dayn (debt certificates).

Al Bai Bithaman AjilFinancing with deferred repayment over a

specific period of time (deferred sale). Housing and Motor Vehicle Loan.

Shariah Principles in Tabung Haji Investment (Cont.)Al-Mudharaba

An agreement to provide the capital by one party and management expertise by the other party.

In case of any loses, the provider of capital loses his money, and management his labor,

This instrument is basically a time deposit where the bank will invest the deposits collectively over a specified period and any returns will be divided accordingly.

Al-MurabahaThis is a financing arrangement with a repayment

agreed by both parties, that include the profit mark-up. Eg Islamic Accepted Billls.

Shariah Principles in Tabung Haji Investment (Cont.) Al-Qardul Hassan

In case of Benevolent Loan, the provider of capital is guaranteed at least their principal amount.

This instrument is issued by the government of Malaysia to enable Islamic financial institutions to meet their short term liquidity requirement.

Al-Wadiah It requires new depositors to fill in the Depositors Personal and Nomination

Form which includes the statement of aqad izin. The principle of aqad izin under the law of the tabung haji Act means that

depositors agree to save in Tabung Haji and give consent for it to manage their saving for invesment purposes.

Based on the consent, Tabung Haji mobilized the Fund collected for the investment

The profit derived from these investment is distributed among the depositors in the form of a bonus.

TH provides credit facilities to its staff for the purpose of buying a house/vehicle based on the principle of “bai bithaman ajil”

It also provided loans to the needy pilgrims in the holy land based on the principle of “al-qardhul hassan”.

Shariah Principles in Tabung Haji Investment (Cont.)Zakat Payment

Before distribution of dividends, TH will pay business zakah from the profits earned during the zakah year and the amount of working capital at the end of the zakah financial year (hijrah)

The rate is 2.5 percent on the aggregate of profits earned.

The pay on behalf of depositors based on aqad izin where depositors are considered to be providers of funds for the business and investment activities.

Tabung Haji vs Others Investment Medium