KUALA LUMPUR (Nov 26): The Edge weekly in its latest edition said Datuk Johan Abdullah has taken over the reins of Lembaga Tabung Haji (LTH) at a challenging time. He was appointed acting CEO on May 16 before becoming CEO on July 1.
While he does not complain about the task ahead during an exclusive interview with The Edge, the group managing director acknowledges that much uncertainty looms over the economy in the country, said the magazine.
It is cover story, the Edge’s Azam Aris, Jose Barrock and Khairie Hisyam Aliman wrote that to put things in perspective, the benchmark FBM KLCI has shed more than 73 points or 4% since mid-August and is trading at the 1,625 point level, the lowest since June.
The weekly said the ringgit has weakened by more than 13% since mid-July, hitting 4.46 against the greenback, the lowest since the all-time low of 4.71 in January 1998.
On the political front, street protests are aplenty, political parties are at loggerheads and the problems at strategic investment fund 1Malaysia Development Bhd (1MDB) are coming out and raising more questions than answers.
From 2011 to 2015, LTH registered net profits of between RM1.69 billion and RM3.54 billion (see table below). Depositors were given dividends and bonuses (including a Haj bonus and a 50-year anniversary bonus in 2012) of between 6% and 8.25%, translating to between RM1.68 billion and RM3.24 billion in payouts.
The Edge also said that while Johan’s strategy for the challenging times ahead is still being fine-tuned, it will largely hinge on LTH increasing its investment in equities from 46% to 53%, fixed income from 23% to 27% and real estate from 11% to 15%. In managing and squeezing better returns from its fund of RM65 billion, LTH will also hold less cash, reducing it from 20% to 5%.
Other areas LTH may venture into include concession model businesses and infrastructure.
For more insight into LTH’s strategies going forward, read the Edge for the week of Nov 28 – Dec 4 available at newsstands now.
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