KUALA LUMPUR, March 27 (Bernama) -- The Armed Forces Fund Board (LTAT) plans to reduce its strategic asset holdings from 56 per cent to 35 per cent under ‘Project Earth’ over the next three years to lower exposure while retaining control.
LTAT chief executive Mohammad Ashraf Md Radzi said strategic assets currently account for 56 per cent of the RM13.6 billion under management.
“Through this capital recovery, any transactions or monetisation will allow us to reclaim the capital invested in these companies in a structured manner – at their rightful value – and reinvest in other asset classes where we have gaps,” he said at the LTAT Dividend 2024 media briefing here today.
He noted that LTAT’s strategic assets include its wholly owned subsidiary, Boustead Holdings Bhd, a 54.9 per cent stake in Pharmaniaga Bhd, and a 22 per cent stake in Affin Bank Bhd.
Apart from strategic assets, LTAT's portfolio includes real estate (11.8 per cent), public equity (9.4 per cent), fixed income (9.3 per cent), private equity (7.8 per cent), and cash and money market instruments (5.8 per cent).
Last year, the Public Accounts Committee (PAC) called on LTAT to diversify its investments instead of focusing on Boustead Holdings Bhd.
Project Earth aims to optimise LTAT’s investment strategy while fostering the long-term growth of key companies. The initiative takes into account the need to nurture businesses with strong growth prospects and long-term benefits.
Mohammad Ashraf said the project was presented to the Cabinet on Dec 13, 2024.
“The three objectives are to improve operational efficiency and productivity, ensure each subsidiary remains competitive in its respective industry, and structure each operating company under the most optimal shareholding.
“This adjusted strategic plan under Project Earth focuses on these three objectives as guiding principles. We remain consistent in our goal of reducing exposure levels while creating a positive gap between our balance sheet investment costs and the actual value of our holdings,” he explained.
As Malaysia chairs ASEAN, LTAT aims to strengthen partnerships within ASEAN nations by leveraging Malaysia’s leadership role to foster economic cooperation, aligning with its broader strategy of balancing domestic priorities while capitalising on regional synergies.
“In farming and agriculture, for example, we have a majority-owned subsidiary operating in Indonesia doing a similar business.
“However, their clientele consists mainly of private sector companies rather than government sector. Whenever feasible, we aim to replicate our domestic market strategies in Indonesia,” he added.
-- BERNAMA
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