KUALA LUMPUR: The less than stellar returns of the Armed Forces Superannuation Fund Board’s (LTAT) investments over a three-year-period since 2015 was due to the uncertain condition of the local stock market, says the Defence Ministry.
Defence Minister Mohamad Sabu said that the declaring of dividends of LTAT each year is tied to the profits it managed to generate that year, with a large part of that return generated from dividends from companies it invested in as well as share-selling activities.
“LTAT also generates returns from other investments such as sale of property, interest on deposit, monthly rental from buildings and land, and other activities.
“These returns are distributed to contributors in dividends that are credited into their accounts.
“Over the past three years from 2015, 2016 and 2017, LTAT’s returns from investment in companies and sale were jeopardised due to the uncertainty of performances in the local stock market.
“The board of directors and management of LTAT will identify new investments that are profitable and review the investments from time to time to ensure LTAT’s investments are safe and bring opportunity (for returns).
“I myself have made efforts to take steps to restructure the administration of LTAT so that it becomes better and more efficient.
“We will ensure that LTAT is at a better level in the future. The declaration of profit would be made in February next year,” he said during Minister’s Question Time at the Dewan Rakyat on Monday.
He was answering a question from Ahmad Amzad Mohamed @ Hashim (Pas-Kuala Teerengganu) who wanted to know the factors behind the decrease in LTAT’s net profit and drop in dividend over a three-year period.
Mohamad promised that the government will continue to give a six percent bonus in cash and unit trust to members of the military through LTAT.
He said that this long-term investment is for the wellbeing of military members when they retire.
“LTAT is among the best if managed correctly professionally and properly. What is good we continue, those who steal, we will arrest.”
