Hajj, which literally means ‘going to’ or ‘visiting a place’, is an annual pilgrimage where Muslims visit the Ka’bah, the holiest site in Islam. This pilgrimage takes place during the Islamic month of Dhu al-Hijjah, which typically falls in June or July. During Hajj, pilgrims perform various rituals and pray facing the Ka’bah within the Great Mosque of Mecca in Saudi Arabia.
For Malaysians, performing Hajj involves several costs, including flight tickets, accommodation, visa applications, and taxes payable to the Saudi Arabian government, which can amount to a significant sum. According to a news report in 2022, private Hajj packages offered by travel operators were priced at RM50,000 and above.
However, Malaysians have a more affordable option through Tabung Haji, a fund established by the government in 1963 to help Muslims save for and manage the costs of performing Hajj.
How Does Tabung Haji Help You Save For Hajj?
Tabung Haji is a Shariah-compliant fund that invests in fixed income instruments, equities, real estate, and money markets to provide returns to its members.
In 2023, Tabung Haji announced a dividend of 3.1% per annum, slightly higher than the 3.0% dividend declared in 2022. Savings in the Tabung Haji fund are guaranteed by the government and are tax-exempt.
Registering and Paying for Hajj
Registration for Hajj with Tabung Haji operates on a first-come, first-served basis due to a restrictive quota on the number of pilgrims allowed from each country. This quota is based on the total Muslim population of a country, and for Malaysia, the approved quota for 2024 is 31,600 pilgrims.
To register for Hajj, members must meet the following requirements:
- Have a minimum balance of RM1,300 in their Tabung Haji account.
- Have never performed Hajj before.
- Be in a group of no more than six people.
- Present identification documents at the time of registration at Tabung Haji counters.
After registration, members will be informed of the year they are scheduled to perform Hajj based on their registration date. They will then need to cover various Hajj costs, including flight, transportation, accommodation, meals, Hajj courses, medical expenses, and levies.
The Hajj costs vary according to income groups:
Bottom 40 income group: Individuals receive a government subsidy of RM1,000 and need to pay RM12,356 per person, with the original cost being RM13,356.
Middle 40 income group: Individuals need to pay RM19,152.
Top 20 income group: Individuals need to pay RM33,300.
Opening a Tabung Haji Account
Any Malaysian who is of the Muslim faith can open an account and deposit savings with Tabung Haji. Parents or guardians can also set up a junior account for children under 18 and deposit savings on their behalf.
Eligible individuals can open a Tabung Haji account online through the THiJARI platform with a minimum initial deposit of RM2, which can be paid online. Alternatively, accounts can be opened at the following locations:
- Tabung Haji counters
- Tabung Haji mobile branches
- Tabung Haji mobile kiosks
- Bank Islam and Bank Rakyat
Depositing Savings into Tabung Haji
Members can deposit savings via cash, cheque, or fund transfer through the following channels:
- Tabung Haji counters
- Collection agents listed on the Tabung Haji website
- Digital payment service JomPay
There is no limit to the amount that can be deposited into a Tabung Haji account.
Additionally, members can opt for monthly salary deductions, where employers deduct a portion of employees’ wages and deposit it into their Tabung Haji account. Employees need to fill out the Salary Deduction Contribution Form (Forms JP 010 and JP 010-01) and submit it to the nearest Tabung Haji counter or online via THiJARI.
The Tabung Haji board provides a range of comprehensive Hajj services, including registration for Hajj, booking flights and accommodations, and visa application assistance.
Withdrawing Tabung Haji Funds
Individuals can withdraw their savings at Tabung Haji counters or through approved online channels. Additionally, they can apply for a Tabung Haji Debit-Islamic Card, a service in collaboration with Bank Islam, which allows depositors to withdraw money in Mecca without charges during the Hajj months. The card also enables withdrawals from ATMs in Malaysia and overseas.
Read Also: Guide To Investing In Malaysia’s Private Retirement Scheme (PRS)
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