Malay unity means little if public institutions headed by Malays are poorly managed, according to political analyst Ahmad Zaharuddin Sani Ahmad Sabri of Global Asia Consulting.
He said the Malay community ultimately bears the consequences when there is a lack of accountability in agencies and institutions such as Lembaga Tabung Haji (TH) and the Armed Forces Fund Board (LTAT).
Zaharuddin said political control also “means little” without competent management, proper scrutiny and accountability, particularly when such institutions are often led by political appointees who may not have the necessary professional qualifications.
“The bottom line is that Malay interests are not necessarily safeguarded by political dominance,” he told FMT.
Malay unity and institutional accountability
“Malay unity” has become a key rallying cry for the Barisan Nasional-Perikatan Nasional alliance, but Zaharuddin noted that the financial problems involving TH, LTAT and 1Malaysia Development Bhd (1MDB) had barely been raised during the recent Johor and Negeri Sembilan elections.
He pointed out that Malay individuals had been entrusted with managing TH, LTAT and 1MDB.
“Unfortunately, each and every one of them has been weakened by poor decisions and failures accumulated over years,” he said.
Zaharuddin noted that government-owned Urusharta Jamaah (UJSB) eventually had to acquire TH’s underperforming assets worth RM9.7 billion for RM19.9 billion, resulting in an effective RM10.2 billion rescue of TH’s balance sheet.
The government also approved an outlay of RM17.8 billion to cover the expected shortfall in UJSB’s sukuk obligations, ultimately shifting the financial burden from TH to taxpayers.
Financial failures carry a cost
Zaharuddin said similar concerns had emerged at LTAT, where financial problems involving its main investment arm, Boustead Holdings Bhd, could result in the loss of billions of ringgit belonging to armed forces personnel.
He said 1MDB presented an even larger burden, with the government having paid RM42.5 billion in principal and interest, while another RM8.9 billion remained outstanding.
“These failures do not stay inside the institutions. The cost eventually returns to the rakyat,” he said.
Zaharuddin said every ringgit spent rescuing a public fund or repaying debts arising from past failures was money that could otherwise have been used for healthcare, education and food security.
He said this made poor governance a bread-and-butter issue rather than an abstract debate over financial management.
With another election approaching, Zaharuddin said the more meaningful test of leadership was whether public institutions were professionally managed, losses were confronted early and those responsible were held accountable.
TH findings raise further questions
The royal commission of inquiry into the TH problem found that the pilgrimage fund faced a serious financial crisis in 2017 after paying high hibah and using “creative accounting” that obscured its true financial position.
Veteran journalist A Kadir Jasin said the findings were unsurprising when viewed alongside 1MDB and other scandals under the former Barisan Nasional government.
He added that the findings should have angered Malays, but questioned whether such anger would last, saying Malays were “easily pacified”.
Meanwhile, former ACCA Malaysia advisory committee president Khalid Ahmad described the practices uncovered at TH as a “massive and diabolical Ponzi scheme”.
He said the breach was particularly serious because TH carried an Islamic amanah to safeguard the savings of Muslims hoping to perform the haj.
