TH to continue subsidy for new pilgrims

KUALA LUMPUR: Tabung Haji (TH) will maintain the subsidy for first-time haj pilgrims, a decision that will cost the organisation north of RM306 million.

Minister in the Prime Minister’s Department Datuk Seri Dr Mujahid Yusof Rawa said the cost for first-time haj pilgrims, otherwise known as “jemaah haji muassasah”, will be maintained especially with the cost of a pilgrim rising from RM22,450 last year to RM22,900 this year, we (TH) will maintain our subsidy as this is our obligation.

“Over the last decade up to last year, we have taken on total subsidisation of over RM1 billion,” he said here yesterday.

Mujahid said the country’s haj pilgrims quota would be maintained at 30,200 this year.

“We have discussed with the Saudi Arabian government about increasing our quota to 31,300. However, the country is not able to do so due to certain limitations on its side.”

He said TH depositors’ dividends would not be affected by the firm’s decision to continue the subsidy.

“The subsidy absorption will be part of our operating expenditures and will have no impact on dividends, which will be announced in late February or early March.”

The cost of the haj pilgrimage had been steadily rising over the years, especially as the Saudi Arabian government introduced a five per cent value added tax (VAT) last year.

The VAT amounts to RM733 per pilgrim and includes accommodation, food and services in the Holy Land.

As such, the cost of performing the haj on the whole last year increased to RM22,450 from RM19,550 the year before.