1

What is the definition of Wakalah?

Wakalah means an act of one person (Muwakkil) who appoints another party (Wakil) as one’s representative to handle one’s affairs.

2

Does this mean the concepts of Wadiah Yad Dhamanah is used for savings and Wakalah for investment?

The concepts of Wadiah Yad Dhamanah and Wakalah can both be used for the purpose of savings and saving funds can be invested. 

3

Why are the Syariah contract for TH accounts changed to Wakalah?

Through Wakalah contract, depositors will have the opportunity to gain additional values and other benefits under the Wakalah contract, while continue to enjoy existing benefits.

4

Why does TH executes the contract change now?

TH always strive to improve and enhance its services by implementing and restructuring reforms and efforts.

5

Is this new contract one of TH’s latest efforts in restructuring?

Yes.

6

Will depositors need to carry out akad for Wakalah?

No.

7

Will existing depositors receive new account numbers?

No. All account numbers will remain the same.

8

Are depositors able to make withdrawals anytime?

Yes. Depositors will be able to make deposits and withdrawals as per current terms and conditions. 

9

Is there any limitations to deposits or withdrawals under the Wakalah concept?

There is no limit for deposits. However, cash withdrawals are still capped at RM10,000.00 as per current rules in force.

10

When the Wakalah contract takes effect, will there be any standard initial deposit amount for new TH depositors?

Minimum initial deposit amount remains at RM2.00.

11

Will the existing depositors need to fill up any new documents?

No.

12

Will it be necessary for the existing depositors to visit any TH counters to renew their contract for TH accounts?

No. 

13

Will there be any new documents to be filled up by existing depositors to register for the new contract? 

No. 

14

Will the Children’s accounts under one’s custody receive new account number?

No. 

15

Will the inactive accounts get new account numbers under this Wakalah contract?

No. 

16

How about all accounts under one’s custody, will any account registration/update needed under this Wakalah contract?

No. 

17

For depositors who have linked their TH accounts with BIMB, Maybank, CIMB or Bank Rakyat accounts; will they have to relink their accounts?

No. 

18

Will the depositors who have registered for Hajj need to reregister?

No. 

19

Will the dormant account holders get new account number under this Wakalah contract?

Yes. The depositors would have to open a new account.

20

What about the dormant accounts, will they need to be reregistered or updated to reactivate this new contract?

Yes. The depositors would have to open a new account.

21

How about children’s account holders whose age are already above 18 years, will they need to reregister or update their accounts under this new Wakalah contract? 

No. However, their authorised guardians need to change the status of the accounts from children’ accounts to adults’ accounts when the children reach 18 years of age.

22

Will the Wakalah contract affect inactive accounts?

Yes. All TH accounts will be based on Wakalah contract beginning December 31, 2019.

23

Will depositors be able to choose between Wakalah concept or Wadiah Yad-Dhamanah concept?

All TH accounts will be based on Wakalah contract beginning December 31, 2019.

24

Can depositors make nomination?

Yes. Depositors can make nominations and divisions will still be based on Syariah Laws. 

25

Will the deposit accounts still be 100% guaranteed the Government once the concept changes to Wakalah?

Yes. All depositors funds will still be guaranteed by the Government of Malaysia as per Tabung Haji Act 1995 (Akta Tabung Haji 1995).

26

Will the depositors funds still be safe once the new contract takes effect?

Yes. All depositors funds will still be guaranteed by the Government of Malaysia as per Tabung Haji Act 1995 (Akta Tabung Haji 1995).

27

Will depositors need to pay savings zakat with the implementation of Wakalah contract?

No. This is in line with the decision of the TH Syariah Advisory Committee, as TH pays zakat on behalf of their depositors.

28

What are the main characteristics of Wakalah that distinguish it from Wadiah Yad Dhamanah?

For Wakalah, the Depositor is the principle who assigns TH to manage the fund and pilgrimage related affairs of the Depositor in accordance to the Hajj Act 1995.

For Wadiah Yad Dhamanah, the Depositor deposits money into the TH account and allows TH to use the funds including for pilgrimage related affairs pursuant to the Hajj Act 1995.

29

What is the advantage of Wakalah over Wadiah Yad-Dhamanah?

Through the Wakalah contract, depositors have the opportunity to gain additional value and other benefits under the Wakalah contract on top of maintaining existing facilities.

30

What are the terms and conditions for a Wakalah-based TH account?

The new terms and conditions can be referred to at www.tabunghaji.gov.my/wakalah

31

With the change to Wakalah contracts, it seems TH is switching from a savings instrument to an investment instrument? Is that not contradicting with the original purpose of the formation of TH?

No. Wakalah has been widely used by Islamic financial institutions and non-bank savings institutions and does not conflict with TH's original goals.

32

Will there be any costs/fees incurred by the Depositors when switching to Wakalah?

Yes. Similar to the previous Wadiah Yad Dhamanah concept, the cost will be deducted from the profit generated, before the profit is distributed to the Depositors.

33

Will there be any costs/fees incurred by the Depositors when the concept is switched?

Yes. Similar to the previous Wadiah Yad Dhamanah concept, the cost will be deducted from the profit generated, before the profit is distributed to the Depositors.

34

Do the benefits (hibah) received before from the Wadiah Yad Dhamanah concept took into account TH management costs, as well as Hajj and Zakat costs?

Yes. Similar to the previous Wadiah Yad Dhamanah concept, the cost will be deducted from the profit generated, before the profit is distributed to the Depositors.

35

How is the return of the profit to the depositors under this Wakalah contract calculated?

Yes. Similar to the previous Wadiah Yad Dhamanah concept, the cost will be deducted from the profit generated, before the profit is distributed to the Depositors.

36

After the change to Wakalah concept, will the Depositors deposit be affected if the investment made by TH face losses?

The profits distributed are based on the financial performance of TH. 

37

Will the annual grant (hibah)/dividend/bonus be higher using Wakalah contracts?

The profits distributed are based on the financial performance of TH. 

38

Will TH be transparent about the details of the investment made to the depositor?

Yes. TH's financial performance have been made public on a quarterly basis since 2018.

39

Does TH deposits have any maturity period?

No.

40

What investments will TH make with the depositor funds under this new contract?

TH invests into Shariah-compliant assets and activities based on strategic asset allocations determined by the TH management.

41

Will this introduction of new contract means that TH will be more active/competitive in future investments?

TH is constantly striving to invest and operate towards sustainable growth.

42

What about the benefits (annual grants (hibah) or pilgrims/dividends/bonuses) that were gained before through the Wadiah Yad Dhamanah concept, do they need to be returned?

No.

43

Was the former contract of Wadiah Yad Dhamanah non-Shariah-compliant?

No. The previous contract complies with the requirements of Syarak.