LTAT declares highest dividend in eight years at 5.35pc, payout exceeds RM524m

KUALA LUMPUR, March 12 — Lembaga Tabung Angkatan Tentera (LTAT), the pension fund for Malaysia’s armed forces personnel, has announced a dividend of 5.35 per cent for the financial year ended December 31, 2025 — its highest payout in eight years.

The distribution totals RM524.74 million, the largest dividend payment by the fund since 2017, according to a statement issued today, reported The Edge.

The dividend, which represents more than 96 per cent of LTAT’s net profit, 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 said.

LTAT said it will undergo a long-term transformation under GEMPUR30, its strategic roadmap for 2026 to 2030 aimed at strengthening its role as a sustainable and forward-looking provident fund.

The strategy includes continued optimisation and rebalancing of LTAT’s investment portfolio, including selective divestments and reinvestments to redeploy capital into sectors with stronger long-term growth potential.

Through its investment arm Boustead Holdings Bhd, LTAT plans to place greater emphasis on two key sectors — defence-related industries and real estate development — in line with Malaysia’s National Defence Industry Policy and the Ministry of Defence’s strategic priorities.

In 2025, LTAT recorded total investment income of RM749.49 million, while distributable profit stood at RM541.56 million.

The fund also reported that its combined reserves expanded by 29.1 per cent year-on-year to RM1.31 billion, compared with RM1.01 billion in 2024.

Chief executive officer Mohammad Ashraf Md Radz said the improved performance demonstrates the fund’s stronger financial position and ability to sustain dividend payouts for contributors.

“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.

The fund is also planning to increase its exposure to sectors considered strategically important to Malaysia’s economic and national security interests, including the defence ecosystem, real estate and pharmaceutical industries, which LTAT said are expected to generate long-term value.

Mohammad Ashraf said the pharmaceutical sector has emerged as a priority area, particularly in ensuring the sustainability and security of Malaysia’s medicine supply chain.

He added that Pharmaniaga Bhd in which LTAT has a combined direct and indirect stake of 43.9 per cent, has shown encouraging signs of recovery and is on track to exit its Practice Note 17 financially distressed status in the near term.

LTAT has a direct 8.7 per cent shareholding in Pharmaniaga, while its subsidiary Boustead Holdings remains the pharmaceutical group’s largest shareholder with a 35.2 per cent stake.

LTAT manages retirement savings for members of Malaysia’s armed forces and plays a strategic role in the country’s government-linked investment ecosystem.

Officials present at 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.