TH gains profit from purchase of TRX land - PM Najib

Perdana Menteri Datuk Seri Najib Tun Razak expressed regret today that certain quarters have politicised the issue of Tun Razak Exchange (TRX) land which was bought by Tabung Haji (TH) from 1Malaysia Development Berhad (1MDB).

This is because, the purchase of the 0.631-hectare plot of land at RM188.8 million, made in December 2015, was actually a smart and worthwhile investment.

“The land was purchased at a price of RM1,800 per square foot.

“But when I asked Datuk Johan Abdullah (TH Group managing director and chief executive officer) how much it is worth now, he said there are buyers who would pay for a price of RM2,200 per square foot. We can already see the profit,” he said.

Najib said this in his keynote address when launching the TH Foundation at the Kompleks TH Kelana Jaya here today.

The Prime Minister stressed that the returns from this investment, as well as other initiatives taken by the fund, will eventually be enjoyed by TH depositors, in line with its focus on the welfare and interests of Malaysian pilgrims.

One of the significant successes of TH was in maintaining the haj fee for Malaysian haj pilgrims at RM9,980 since 2009.

In fact, he said TH had also managed to provide subsidy of RM160 million for the pilgrims this year, hence enabling each pilgrim to receive subsidy of almost RM8,000.

"The RM8,000 subsidy received by each pilgrim is just a little short from the fee of RM9,980 that they have to pay. Now, where in the world can you get that price (to perform haj)?," he said.

Meanwhile, speaking at a press conference later, Johan said TH will not sell its TRX land despite receiving a very high offer for it.

He said the decision was based on TH's expectations of its high value-added potential over the long term.

"From the start, the land was bought based on commercial (consideration) and we've made an evaluation of its value in the long term.

"We've received a very high offer (for the land), but we don't want to sell it as we believe in the long-term value creation of that investment," said Johan.

Currently, he added, TH was in discussion with several architecture firms on the development plan to be carried out on the land.