Discussion in 'Religion & Culture' started by Ray, Jun 20, 2012.
Much is in the offing.
Tabung Haji or Lembaga Tabung Haji (Malay Jawi: ØªØ§Ø¨ÙˆÚ ØØ§Ø¬ ; Arabic ØµÙ†Ø¯ÙˆÙ‚ Ø§Ù„ØØ¬) is the Malaysian hajj pilgrims fund board. It was formerly known as Lembaga Urusan dan Tabung Haji (LUTH). The main headquarters is located at Jalan Tun Razak, Kuala Lumpur. Tabung Haji facilitates savings for the pilgrimage to Makkah through investment in Shariah-compliant vehicles.
The Tabung sets up various profit making schemes like banks and financial institutions that create the finances.
Anyone has any idea about this and could expand on this from Wiki?
Tabung Haji may be adopted in India: Salman Khurshid
KOCHI: The Centre is considering a proposal to adopt some of the features of the Tabung Haji system for supporting Haj pilgrimage in India in the wake of the recent Supreme Court order on Haj reforms. Tabung Haji facilitates savings for the pilgrimage to Mecca through investment in Shariah-compliant vehicles.
Union minister of law and justice Salman Khurshid told reporters here on Monday that the ministry of external affairs has organized a discussion regarding this which would be held in New Delhi on June 19. Experts from Malaysia would be attending it.
He said the Centre would abide by the Supreme Court order to do away with the practice of giving subsidy to Haj pilgrimage within 10 years. But during this interim period alternative arrangements are being considered. "We will anyway ensure that Haj subsidy will not mean subsidizing the airline fares."
He said the government was also planning to provide more embarkation platforms for the Haj pilgrimage in different parts of India. Replying to questions he said, the Centre was trying to find a solution to the Mullaperiyar dispute which would be acceptable to both Tamil Nadu and Kerala.
Khurshid strongly condemned the reported killing of the ousted CPM leader T P Chandrasekharan and said "this is not the way civilized people behave with adversaries.
Tabung Haji may be adopted in India: Salman Khurshid - Times Of India
Sounds good, but what is this `investment in Shariah-compliant vehicles`. National Commision for Mionorities had proposed Islamic banking to be started in India which would allow devout Muslims to invest their money appropriately instead of not taking the interest on their investments as they're doing currently [not all Muslims do that i.e. letting the interest go]. Islamic banking proposal was shot down by RBI.
From what I know, its basically like a savings cum investment scheme.
A member has to regularly pay a contribution monthly or fornightly into an account. The expectation is that the member will start it early in his 20s as soon as he has a job and by his 40s or 50s, he should have saved enough including the return on investment of his savings to go to Hajj. The entire "prospective future Haji fund" acts as a mutal fund which is then invested based on the decisions of the board with the aim of small but safe returns and returning all profits to members.
For example, we already have a TASIS 50 Shariah-compliant index that is a list of 50 major BSE stocks that are shariah complian( i.e. don't have a business in alcohol, gambling e.t.c.). Member contributions can go into that. In the case of Malaysia, it also includes returns on interest-free loans that are given out to customers but at present we don't have that available here. But possibly the fund itself could invest overseas in such vehicles. The Maylaysian Haji fund for example purchased property in the UK as part of its investment portfolio.
I think its a great idea if its put in place but the Haj fund management has to be transparent and be like a publicly listed company and under the purview of the RTI. Transparency should be built into the system from the ground up including into the selection of the Fund managers. The best outcome would be that even poor people could fund their own Haj trip without any subsidy by the govt. or other richer Hajis.
In financial terms, its basically a non-profit non-banking, savings and investment fund operated under Govt. oversight by independant fund managers. Since its a non-banking entity, the RBI view does not apply to this concept.
Some more info on the Tabung Haji investment scheme
Malaysia's TABUNG HAJI $9 Billion Hajj-Fund
How Malaysiaâ€™s Tabung Haji could provide Haj financing a Shariah-compliant model | ArabNews
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