Note: The article has been amended for accuracy.
KUALA LUMPUR (Nov 25): Lembaga Tabung Angkatan Tentera’s exposure in Affin Bank Bhd (KL:AFFIN) will decline to around 9% of the armed forces fund board’s total assets by 2030.
The armed forces pension fund also known as LTAT expects its asset exposure to fall to 12% in flagship Boustead Holdings Bhd, 7% in Boustead Plantations Bhd, and 3% in Kumpulan Irat, Defence Minister Datuk Seri Mohamed Khaled Nordin told the Dewan Rakyat.
Khaled said collaboration with strategic partners and the sale of shares and strategic assets will allow LTAT to raise funds for lower-risk, fixed-income investments.
“This will provide greater assurance of sustainable and stable returns for contributors,” he added.
Affin Bank, one of the country’s smallest lenders, currently make up about 10% of LTAT’s total assets as of 2025. LTAT currently owns 22% of Affin Bank after the fund and Boustead sold nearly 27% of their stakes to the Sarawak government to help reduce debt.
The diversifications are part of a plan dubbed Project Earth that involves LTAT cutting its ownership in assets deemed strategic to 35% of its total holdings. As of July 2025, LTAT’s strategic asset exposure stood at 57.8%.
Khaled was responding to Datuk Khlir Mohd Nor (Perikatan Nasional-Ketereh), who inquired about strategic measures to ensure LTAT can deliver dividends comparable to strong-performing years like 2017 and earlier.
Apart from trimming strategic asset holdings, LTAT is taking steps to reduce the loans of subsidiaries such as Boustead Plantations, freeing up funds to improve investment performance.
Additionally, Boustead, Pharmaniaga Bhd (KL:PHARMA), and Boustead Plantations are undergoing operational recovery under Project Earth that was approved by LTAT on Aug 9, 2024, and subsequently presented to the Cabinet on Dec 13, 2024.
Currently, LTAT is reviewing its framework for allocating strategic assets, which is under the Ministry of Finance's review for final approval before full implementation, Khaled added.
LTAT’s financial position has been under scrutiny, as the Public Accounts Committee in November 2024 raised concerns over the fund’s stability and the suspension of its previous restructuring plan, Project Moonshot.
The bipartisan parliamentary committee at that time warned that Boustead’s cash flow crisis and multiple financial challenges could erode up to 50% of LTAT’s funds, putting nearly RM5 billion of contributors’ money at risk.
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