This article first appeared in The Edge Malaysia Weekly on December 30, 2024 - January 12, 2025
In Corporate Malaysia, it is rare that CEOs resign when their plans to improve an entity are thwarted by a lack of political will.
It’s even rarer that the CEO makes the departure public and provides the real reason for leaving. After a change of the guard, what now for LTAT?
Chairman
Following the resignation of Tan Sri Raja Mohamed Affandi Raja Mohamed Noor, LTAT appointed former defence forces chief Tan Sri Azizan Ariffin as its chairman, effective April 1, 2024.
Azizan has said little since his appointment. But when announcing the appointment, LTAT said his extensive background in military affairs, diplomacy and leadership development would be instrumental in guiding the fund towards its strategic objectives and enhancing its role in supporting the welfare of armed forces personnel and their families.
Azizan served the Malaysian Armed Forces for 40 years and was also the air force chief.
CEO
Mohammad Ashraf assumed his role as CEO of LTAT on April 1, having served as its chief financial officer (CFO) since March 2020.
He was instrumental in many of LTAT’s policies and had worked alongside Datuk Ahmad Nazim Abd Rahman prior to the former CEO’s sudden departure. Mohammad Ashraf’s rapport with Defence Minister Datuk Seri Mohamed Khaled Nordin is said to be good, and he could be heading LTAT for the long term, spearheading the restructuring and transformation of the group which has more than RM11 billion in assets under management.
Truth be told, there are not many who would take on Mohammad Ashraf’s role, given what appears to be regular political interference, constant spotlight on the CEO and scrutiny over every deal.
Mohammad Ashraf, who is known as a determined, hard-working individual, was an accountant with Ernst & Young before leaving for UBS Investment Bank.
His experience in capital markets followed stints at Prokhas Sdn Bhd, an advisory firm wholly owned by the Ministry of Finance, and publicly traded construction outfit Ahmad Zaki Resources Bhd (KL:AZRB), where he was head of corporate finance and later, CFO.
Mohammad Ashraf has brought in his own team to help steer LTAT and its flagship, the Boustead group. In August, Haizad Rizal joined LTAT as CFO from pension fund Kumpulan Wang Persaraan (Diperbadankan) or KWAP. In October, Ahmad Farouk Mohamed took over as chief investment officer, having left Malaysian Industrial Development Finance Bhd.
Recently, LTAT sold 6.87% in Affin Bank to SG Assetfin Holdings Sdn Bhd, a unit of the Sarawak state government, following the state’s acquisition of a 20.08% stake from Boustead Holdings in November. The two blocks of shares in Affin Bank were sold for RM1.78 billion. The Sarawak government had acquired a 4.81% stake in Affin Bank from LTAT in April 2023 for RM221.74 million, or RM1.97 per share.
LTAT now has 22.01% interest in Affin Bank, the Sarawak government has 31.25%, while Boustead Holdings has exited the financial services group.
There is likely to be more happening at Affin Bank with cash-rich Sarawak holding the reins.
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