PETALING JAYA: The total subsidy allocation for the haj in 2025 remains at RM261mil, but the payments to be borne by pilgrims had to be increased due to economic factors beyond the control of Tabung Haji (TH), says its chairman Tan Sri Abdul Rashid Hussain.
The decision to increase the payments was in line with the policy of targeted subsidies based on data of four million depositors in its records, he said when asked for a response to criticism of the increased haj costs announced earlier.
Abdul Rashid said the decision on the haj payments by pilgrims is determined by the total haj cost, which includes travel, accommodation, food and all other incidental fees required in Saudi Arabia.
For the B40 group (low-income group), the payment will rise from RM12,356 in 2024 to RM15,000.
The M40 group (middle- income group) will pay RM23,500 compared to RM19,152 this year, while the payment for the T20 group (high-income group) remains unchanged at RM33,300.
“The T20 group is required to pay the full amount of RM33,300. The B40 and M40 groups will follow the government’s principle of targeted subsidies.
“We have the full data of our depositors. With the increasing cost of performing the haj, it is becoming more difficult for people. Despite that, there are four million people among our depositors who are eager to go for their haj,” Abdul Rashid said in an interview yesterday.
TH group managing director and chief executive officer Syed Hamadah Syed Othman had earlier said it would allocate RM261mil in financial assistance for first-time muassasah pilgrims during the 1446H/2025M pilgrimage season.
“Unfortunately, the need to pay subsidies has affected the returns of the depositors,” he said, adding that the total subsidy for the haj in 2025 will remain at RM261mil.
Abdul Rashid said based on past experience, the take-up rate from those offered to perform the haj is 70%. Roughly 9,000 places are given to those who had appealed to go for their haj earlier for specific reasons.
He added that on average, TH receives about 80,000 appeals from prospective pilgrims every year.
“This indicates the demand to go for the haj is not affected despite the rise in cost,” he said.
He noted that under the Tabung Haji Act, a Malaysian Muslim can only go for the haj through TH itself or with the fund’s authorised agents after accepting the haj offer.
“However, every year, there are people who are cheated by unauthorised agents promising haj visas and cheaper costs, which ends with them getting into trouble with the Saudi authorities and being stranded without accommodation,” warned Abdul Rashid.
PAS secretary-general Datuk Seri Takiyuddin Hassan said TH must reassess its investment policies as the increase in haj costs is affecting the people’s capability to perform the haj.
“The increase will be a significant burden on the rakyat, particularly those from the low- and middle-income groups.
“PAS believes that it is not urgent for TH to take such a drastic step to increase the fees.
“TH must review its policy, especially its role as a public investment fund,” he added.
Takiyuddin said the haj fund was initially established to allow Muslims to invest in sectors such as industry, trade, agriculture and real estate, providing safe, interest-free income and profits to help offset rising costs.
“PAS urges TH to reverse its decision to increase the haj cost for 2025. The government should reassess the fund’s investment policies.
“This is to enable TH to fulfil its role as a profitable investment fund for Muslims and contribute to the nation’s economic growth, just as it has since its establishment in 1963,” he added.
Currently, TH provides the basic package to all pilgrims. However, pilgrims registered with it can also choose to perform the haj with 37 authorised private travel agencies whose packages range between RM55,000 and RM275,000.
