Malaysian Armed Forces Lembaga Tabung Angkatan Tentera Declared 3.5 Percent Dividend

KUALA LUMPUR, May 11 - The Lembaga Tabung Angkatan Tentera (LTAT) has declared an increase in dividends to 3.5 per cent for the financial year ended 31 December 2020, compared to 2.5 per cent in 2019.

Senior Minister of Defence, Datuk Seri Ismail Sabri Yaakob said he was satisfied with the results achieved by LTAT for 2020.

"Especially because it was achieved despite the challenging economic environment following the COVID-19 pandemic, which caused economic turmoil and market volatility in 2020,

"LTAT was also affected by the lower dividends received from investment companies for the year," he said in a statement today.

Ismail Sabri said, despite the impact, LTAT was still able to declare an increase in dividends for 2020, following a higher net profit of RM229 million compared to RM92.8 million in 2019.

“I was informed that the main factor that contributed to the better LTAT results was due to the successful implementation of high impact initiatives through the LTAT Transformation Plan,

"This allows the Fund to record an increase in retained profit of RM287.5 million after dividend payments of RM310.7 million, compared to retained profit of RM63.5 million in 2019," he said.

He said the government was aware that the welfare of the front lines, especially members of the armed forces who were serving, should continue to be a priority.

“Therefore, we are pleased to support LTAT to ensure an increase in dividends for the year.

"The Ministry of Defence, on behalf of all members of the armed forces who benefit from the dividend payment, greatly appreciates the support given by the government," he explained.

At the same time, he said LTAT would continue to strengthen its prospects through an ongoing transformation plan, focusing on strengthening and rebalancing its investment portfolio while improving organizational structure, risk management, corporate governance practices and human resource development.

“The fund is now in the third year of this transformation journey, where 41 and 53 initiatives have been successfully implemented in 2019 and 2020 respectively,

“An additional 77 initiatives will be implemented in 2021, with the aim of strengthening the operations and financial performance of LTAT and its subsidiaries,

"I am also aware that the LTAT Strategic Asset Allocation Framework was approved by the Board in November 2020, with the aim of providing optimal long -term returns with the appropriate level of risk," the statement said.

He explained that during the year, LTAT had begun the process of restructuring its investment portfolio in stages, focusing on fixed income instruments as well as enhancing its public equity investments.

As at 31 December 2020, the total assets under LTAT's management stood at RM9.6 billion.