[3] Prior to the establishment of Lembaga Tabung Haji, there was no Islamic financial institution that provided services to the Muslim in Malaysia to save for hajj expenses.

The idea to set up the Prospective Hajj Pilgrims Savings Corporation (Perbadanan Wang Simpanan Bakal-bakal Haji (PWSBH)) was triggered by a proposal made by the renowned Malay economist, the Royal Professor YM Ungku Abdul Aziz in December 1959 to the Federal Government of Malaya.

Beginning 30 September 1963, PWSBH created history by opening counters to collect deposits from prospective hajj pilgrims in the country.

Their main objective then was to ensure that their savings were secure and free of usury to enable them to fulfill the fifth Five Pillars of Islam and to attain a Mabrur Hajj.

The confidence displayed by the prospective pilgrims drove PWSBH to continue upgrading its services to ensure that it fulfilled the ‘fardu kifayah’ (religious duty of collective obligation).