In a statement, the ministry said the Cabinet agreed at its meeting yesterday to list Tabung Haji as a “prescribed Islamic financial institution” under Section 223 of the Islamic Financial Services Act 2013.

It also said the Cabinet had agreed to strengthen the management and operations of Tabung Haji as a whole through a number of avenues.

A new operational model for it would be explored and would include amendments to the Tabung Haji Act 1995, it added.

“The proposed new model of LTH’s operations will be examined jointly by the Prime Minister’s Department, finance ministry, Bank Negara Malaysia (BNM) and LTH,” the statement said.

On the Royal Commission of Inquiry into issues regarding Tabung Haji that was announced by deputy prime minister Ismail Sabri Yaakob yesterday, the ministry said this would not cover ongoing improvements and restructuring efforts that have been undertaken to strengthen the institution’s governance.

“The governance, integrity and reputation of LTH as an Islamic financial savings institution is very important to ensure that LTH’s financial position is stronger and more stable, to guarantee and preserve the interests of Malaysian depositors and pilgrims.

“As stipulated in the Tabung Haji Act 1995, depositors’ savings remain safe and guaranteed by the government.”