Government Sets Aside RM1 Billion for Urusharta Jamaah to Redeem Sukuk Early in 2027

The government has set aside RM1 billion for Urusharta Jamaah Sdn Bhd (UJSB) to redeem part of its sukuk early in 2027, a move aimed at strengthening the cash flow of Lembaga Tabung Haji (TH). The Ministry of Finance (MOF) disclosed the allocation in a written parliamentary reply published on Friday, 23 October 2026, Bernama reported via The Star.

The MOF said it is committed to providing the money, subject to the government's financial position. It explained that the allocation could not be made as originally planned because spending had to be prioritised for the COVID-19 pandemic.

A quick recap: what is Urusharta Jamaah?

UJSB was set up to take over assets from Tabung Haji as part of the pilgrims fund's recovery. In 2018 it bought TH assets valued at RM9.7 billion for RM19.9 billion. The RM10.2 billion difference was a premium meant to help TH recover, but the MOF said it later became a source of losses for UJSB through asset impairments. Part of the purchase was paid with sukuk, and UJSB owes profit on those sukuk to TH.

The numbers the ministry shared

The written reply answered a question from Datuk Dr Ahmad Marzuk Shaary (PN-Pengkalan Chepa) about UJSB's finances and whether it can meet its sukuk obligations without more government help. The key figures were:

• Operating profit: UJSB has recorded operating profits every year since 2019, including RM297 million for financial year 2025.
• Assets under management: RM11.61 billion at the end of 2025, up from RM9.7 billion in 2018.
• Accumulated losses: RM13.2 billion as of the end of 2025, which the MOF said should be read separately from day-to-day operating performance.
• The new allocation: RM1 billion for early sukuk redemption in 2027.

The MOF also pointed out that the sukuk profit costs UJSB carries are, from TH's side, profit income:

"In other words, the sukuk costs borne by UJSB translated into accrued profit income for TH." (Ministry of Finance, as reported by Bernama)

What this means for Malaysian readers

For the millions of Malaysians who save with Tabung Haji, this is a reassuring signal. Early redemption means more cash flowing back to TH sooner, which supports its ability to pay depositors and fund Hajj operations. It does not change anything you need to do with your account today.

For business owners, the story is a useful reminder of how a large accounting loss and a healthy operating business can exist side by side. Buying assets at a premium can weigh on the balance sheet for years even when the underlying operations make money. If you are acquiring a business, property or equipment, look closely at the price you pay against what the asset is really worth, and plan how any debt used to fund it will be repaid.

Source: The Star (Bernama), "Govt allocates RM1bil to Urusharta Jamaah for early redemption of sukuk in 2027", 23 October 2026. Rewritten in our own words.