LTAT Declares 5.35% Dividend for FY2025, Highest Payout in Eight Years
KUALA LUMPUR — The Armed Forces Fund Board (LTAT) has announced a dividend payout of 5.35 per cent for the financial year ended December 31, 2025, marking the highest dividend declared by the military pension fund in eight years.
The distribution amounts to RM524.74 million, making it the largest dividend payment by LTAT since 2017. The fund said the payout represents more than 96 per cent of its net profit for the year.
The dividend will be credited to contributors’ accounts the following day.
According to LTAT, the improved dividend performance reflects the fund’s continued efforts to strengthen its financial position while enhancing the management and sustainability of contributors’ retirement savings.
The fund also revealed that it will undertake a long-term transformation initiative under its strategic roadmap known as GEMPUR30, which will guide its development from 2026 to 2030.
The roadmap is designed to reinforce LTAT’s role as a sustainable and resilient provident fund capable of adapting to evolving economic conditions.
Under this strategy, LTAT will continue optimising and rebalancing its investment portfolio, including selective divestments and reinvestments aimed at channelling capital into sectors with stronger long-term growth prospects.
Through its investment arm Boustead Holdings Bhd, LTAT plans to prioritise investments in two key areas: defence-related industries and real estate development.
This focus aligns with Malaysia’s National Defence Industry Policy and the strategic priorities set by the Ministry of Defence.
For the 2025 financial year, 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 increased significantly by 29.1 per cent year-on-year to RM1.31 billion compared with RM1.01 billion in 2024.
LTAT chief executive officer Mohammad Ashraf Md Radzi said the improved results demonstrate the fund’s stronger financial position and its ability to maintain consistent dividend distributions for contributors.
He noted that the fund’s steady year-on-year progress reflects its readiness to move into the next phase of institutional growth.
In addition to defence and real estate investments, LTAT is also planning to expand its exposure to several sectors considered strategically important to Malaysia’s economic and national security interests.
These sectors include the pharmaceutical industry, which LTAT believes plays a crucial role in ensuring the long-term resilience of Malaysia’s medicine supply chain.
Mohammad Ashraf said Pharmaniaga Bhd, in which LTAT holds a combined direct and indirect stake of 43.9 per cent, has shown encouraging signs of recovery.
He added that the company is expected to exit its Practice Note 17 (PN17) financially distressed status in the near future.
LTAT currently holds a direct stake of 8.7 per cent in Pharmaniaga, while its subsidiary Boustead Holdings remains the pharmaceutical group’s largest shareholder with a 35.2 per cent stake.
As the retirement savings fund for members of the Malaysian Armed Forces, LTAT plays a key role in managing military personnel’s pension funds while also contributing to Malaysia’s broader government-linked investment ecosystem.
-wilayah.com.my
