Quarterly Performance Disclosure Could Boost Confidence In Tabung Haji
KUALA LUMPUR, Aug 10 (Bernama) -- Tabung Haji (TH) should announce its financial and investment performance on a quarterly basis -- as practised by the Employees Provident Fund (EPF) -- as a measure to strengthen transparency and boost depositor confidence.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said doing so would enable depositors to monitor and assess TH’s financial performance regularly and gain a clearer view of the institution’s fund management.
“The EPF announces its fund performance and the returns on investment on a quarterly basis.
“In terms of operations, they also disclose the number of new contributors, new employers making contributions, and so on. So, perhaps this is something that TH could adopt to further strengthen transparency,” he said on Bernama TV’s Ruang Bicara programme today.
Mohd Afzanizam said the regular sharing of information is also important to inspire depositors’ confidence.
“I believe that the consistent sharing of information would help strengthen confidence in TH, as demonstrated by the EPF,” he said, adding that confidence in TH is important, given that the institution has about 9.8 million depositors and is linked to the country’s financial system and capital market.
He noted that TH, like other government-linked investment companies (GLICs), is a major player in the capital market, including the bond and equity markets, which are also linked to the banking system.
On July 29, the Royal Commission of Inquiry (RCI) on TH released its 211-page report on its investigation into the management and operations of the institution from 2014 to 2020.
A special sitting of the Dewan Rakyat will be held tomorrow (Aug 11) to debate the report.
-- BERNAMA