KUALA LUMPUR (Nov 26): Lembaga Tabung Angkatan Tentera (LTAT) aims to maintain a consistent dividend payout of between 5% and 6% under its restructuring plan known as Project EARTH, the Dewan Rakyat was told on Wednesday (Nov 26).

Wrapping up the Budget 2026 committee-stage debate in the Dewan Rakyat, Deputy Defence Minister Adly Zahari said Project EARTH reflects the armed forces pension fund’s commitment to delivering stable, sustainable returns without depending on one-off gains such as asset disposals — a factor that previously contributed to high dividend payouts.

“Previously, high dividends sometimes came from selling assets. We do not want that. We do not want a situation where we sell assets, record large profits and distribute dividends of 10% or 11%.

“What we want is consistent returns driven by prudent management and long-term investment,” he said.

He was responding to opposition lawmaker Khlir Mohd Nor (PN-Ketereh), who earlier in the debate raised concerns over LTAT’s investment performance and dividend payouts.

Adly noted that while the dividend rate has remained stable, LTAT’s total dividend payouts have risen steadily, increasing from RM161 million in 2018 to RM220 million in 2019, RM310 million in 2020, RM379 million in 2021, RM476 million in 2022, RM485 million in 2023 and RM514 million in 2024.

To mitigate concentration risk, Adly said LTAT has diversified its investment portfolio, including reducing some shareholdings in its subsidiaries.

“We do not want all our funds in one basket because the risk is too high. By liquidating part of our shareholdings, we can diversify further, create more opportunities for returns and reduce exposure to losses.”

He added that these measures form part of LTAT’s Project EARTH initiative, which focuses on strengthening the fund’s fundamentals and restructuring its investments to ensure long-term sustainability.