THE Armed Forces Fund Board (LTAT) which manages the retirement savings for Malaysia’s armed forces personnel, has declared a 5.35 per cent dividend for the financial year ended 31 December 2025, marking its highest distribution in eight years.
The total payout amounts to RM524.74 million, the largest dividend disbursed by the fund since 2017, representing more than 96 per cent of LTAT’s net profit. The dividend will be credited to contributors’ accounts tomorrow.
“The strong performance reflects LTAT’s continued efforts to strengthen its financial position and build greater resilience in managing contributors’ savings,” the fund stated.
LTAT outlined plans for a long-term transformation under its strategic roadmap, GEMPUR30, spanning 2026 to 2030, aimed at reinforcing its role as a sustainable and forward-looking provident fund.
The strategy includes continued optimisation and rebalancing of the fund’s investment portfolio, incorporating selective divestments and reinvestments into sectors with higher long-term growth potential.
Through its investment arm Boustead Holdings Bhd, LTAT plans to emphasise defence-related industries and real estate development, aligning with Malaysia’s National Defence Industry Policy and the strategic priorities of the Ministry of Defence.
In 2025, LTAT reported total investment income of RM749.49 million, with distributable profit reaching RM541.56 million. Its combined reserves rose 29.1 per cent year-on-year to RM1.31 billion, up from RM1.01 billion in 2024.
Chief executive officer Mohammad Ashraf Md Radz said the results demonstrate the fund’s strengthened financial position and ability to maintain dividend payments.
“We are encouraged by the sustained year-on-year performance and are confident of the fund’s sustainability. The results announced today showcase that the fund is stable and ready for its next phase of institutional growth,” he said.
LTAT also plans to increase investments in sectors deemed strategically important to Malaysia’s economy and national security, including defence, real estate, and pharmaceuticals.
Mohammad Ashraf highlighted the pharmaceutical sector as a priority to safeguard the country’s medicine supply chain, noting that Pharmaniaga Bhd, in which LTAT holds a combined 43.9 per cent stake, is on track to exit its financially distressed status under Practice Note 17.
LTAT has a direct 8.7 per cent shareholding in Pharmaniaga, while Boustead Holdings remains the largest shareholder with 35.2 per cent.
Officials attending the dividend announcement included Defence Minister Datuk Seri Mohamed Khaled Nordin, Chief of Armed Forces General Datuk Malek Razak Sulaiman, Defence Ministry secretary-general Datuk Lokman Hakim Ali, and LTAT chairman General (R) Tan Sri Azizan Ariffin.
The fund continues to play a strategic role in Malaysia’s government-linked investment ecosystem while securing the retirement savings of armed forces personnel. – March 12, 2026
