KUALA LUMPUR: The Armed Forces Fund Board (LTAT) has declared a 5.35% dividend for the financial year ended Dec 31 2025, its highest payout in eight years, underpinned by stronger investment income and continued progress in its institutional transformation.

The dividend was announced at an event officiated by Defence Minister Mohamed Khaled Nordin today, who said the fund’s performance demonstrates resilience despite persistent global economic volatility.

He said LTAT’s ability to deliver improved returns reflected sound management of the savings entrusted by members of the Malaysian Armed Forces.

“In a global environment marked by economic uncertainty, LTAT has still managed to record encouraging achievements and announce a better dividend than the previous year,” Khaled said. “For the Ministry of Defence, ensuring that the savings of armed forces personnel are managed responsibly and generate sustainable returns remains a key priority.”

LTAT chief executive Mohammad Ashraf Md Radzi said the fund recorded investment income of RM749.5 million in 2025, with distributable income amounting to RM541.5 million.

The fund strengthened its financial position, with reserves rising to RM1.3 billion, up from RM1 billion a year earlier.

Ashraf said the improvement reflected LTAT’s continued emphasis on disciplined investment strategies, stronger governance practices and the implementation of a multi-year transformation agenda aimed at strengthening long-term sustainability.

“LTAT remains committed to ensuring that every ringgit saved by members of the armed forces is managed with integrity so that it continues to grow and provide financial security for them and their families after service,” he said during the dividend announcement ceremony today.

Despite global economic headwinds in 2025, including geopolitical tensions, inflationary pressures and volatile financial markets, the fund maintained a stable performance through prudent portfolio management.

LTAT is now entering the next phase of its strategic transformation by implementing its new five-year plan, GEMPUR30, which will run from 2026 to 2030.

The plan aims to strengthen LTAT’s investment portfolio while enhancing the performance of key companies within its ecosystem.

Under the strategy, LTAT will focus on strategic sectors through its investment platform, including defence-related industries and property development initiatives that support the needs of military personnel.

Through its group structure, particularly via Boustead Holdings Bhd, the fund intends to expand its role in strengthening the national defence industry ecosystem while also supporting the development of housing projects for members of the armed forces.

The pharmaceutical sector has also been identified as a priority area, with LTAT working to restore the financial strength of its healthcare-related assets.

Ashraf said the performance of Pharmaniaga Bhd has shown encouraging momentum in its recovery, with the company now on track to exit the financially distressed PN17 category in the near future.

LTAT owns Boustead, which historically has been the largest shareholder of Pharmaniaga. Boustead has held around 47% of Pharmaniaga, while LTAT holds a direct stake of 7–9%, giving the LTAT group a combined major shareholding.

Pharmaniaga has long been the concessionaire for the logistics and distribution of medicines to Malaysian public hospitals, aligning with LTAT’s broader government-linked investment portfolio.

Beyond financial returns, LTAT said it is also focusing on initiatives to improve the welfare and financial preparedness of armed forces personnel.

In 2025, the fund implemented financial literacy programmes that reached more than 50,000 military personnel, aimed at helping them manage their finances more effectively and plan for long-term financial security.

Engagement initiatives such as Larian Wira LTAT (a night run) and Jelajah Wira (an engagement platform) drew strong participation, attracting more than 18,000 participants, including over 8,500 members of the armed forces.

At the same time, LTAT and its group companies channelled nearly RM3.2 million towards community and welfare programmes, including flood assistance, education initiatives and support for military families.

The fund said these initiatives reflect its broader commitment to safeguarding the well-being of armed forces personnel, beyond simply delivering investment returns.
Looking ahead, LTAT said it will continue strengthening its investment strategy to ensure sustainable long-term returns for contributors.