Pilgrimage fund Lembaga Tabung Haji (TH) said today it recorded a RM1.06 billion cumulative revenue from all its investments in the oil and gas sector, amid claims that it may have lost RM700 million from the move.
TH said its diversified investments in various sectors have enabled it to cover the increasing costs of Haj operations and subsidy for Malaysian pilgrims every year since 2000, which is expected to rise to around RM200 million this year.
“TH is a long term investor in the oil and gas industry. TH first made investment in this sector in 2001 and has recorded a respectable cumulative RM1.06 billion income from all our investments therein,” TH said in a statement here.
The company however did not specify the amount of profit from its investments into the industry.
“Many of our investments have been made in strong and performing local Bumiputera-owned companies that provide critical services to our national petroleum companies, which help reduces our country’s reliant on foreign oil and gas companies.
“We see the sector as an industry of national strategic importance. A short or medium term marked-to-market unrealised loss does not and will not change our appetite and our commitment in the said sector,” it said.
TH said it is normal in any investment portfolio for a small number of investments to not perform well at a certain period since they are subjected to the market’s volatility, while insisting that the majority of its investments resulted in positive returns.
“It is therefore erroneous to judge the success of an investment company without looking at the overall picture of both profitable and non-profitable investments. Every investment has some amount of risks which no one can eliminate completely.
“Our investment approach is based on ‘foresight perspective’ instead of having the benefit of hindsight like some critics,” it said.
Yesterday, PKR MP Rafizi Ramli had accused TH of risking its depositors’ funds with risky investments into the oil and gas industry.
The Pandan MP estimated that TH had made a loss of RM700 million from depreciating stocks in four oil and gas firms: Perisai Petroleum Berhad, TH Heavy Engineering Berhad, Alam Maritim Berhad, and Reach Energy Berhad.
Last week, Minister in the Prime Minister’s Department Datuk Seri Jamil Khir Baharom admited RM500 million in savings had been withdrawn by TH depositors throughout last year as they were influenced by various allegations hurled by the Opposition against the agency.
Source : @ Malay Mail Online