Hajj 2024: Tabung Haji signs long-term contract to control hike in haj costs

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The Lembaga Tabung Haji (TH) is trying to control the increase in the cost of performing the haj by signing long-term contract agreements involving services in Saudi Arabia, the Dewan Rakyat was told today.

Minister in the Prime Minister’s Department (Religious Affairs) Datuk Dr Mohd Na’im Mokhtar said it included contracts involving accommodation, flights and food to ensure prices could be fixed for a period of time.

“The increase in the cost of haj is inevitable because it is exposed to factors beyond the control of Tabung Haji including the rate of inflation and taxation in Saudi Arabia, the exchange rate of the Malaysian ringgit against the Saudi riyal and the US dollar.
“In addition, the ongoing expansion project in Makkah and Madinah which has caused many accommodation buildings for pilgrims to be demolished, is also putting pressure on the rental price market,” he said when replying to a question from Mohamad Shafizan Kepli (GPS-Batang Lupar).

In addition, he said there are also charges imposed by the Saudi Arabian authorities for various services provided for the welfare and comfort of pilgrims in the Holy Land.

Mohd Na’im said the increase in the value-added tax rate in Saudi Arabia from five per cent to 15 per cent starting in July 2020 is also one of the reasons for the significant cost increase.
Meanwhile, he said the haj cost, payment rate and financial assistance will be announced after a comprehensive discussion is made taking into account the capacity and position of Tabung Haji.
As an Islamic institution that is committed to preserving the welfare of pilgrims, he said Tabung Haji will continue to provide financial assistance to deserving Muassasah pilgrims.

themalaysian reserve