The total payout to depositors for the year will be RM476.45 million.

LTAT attributed its decision to declare the higher dividend to the strong financial results for the 2022 financial year (FY22).

The fund returned a 72.8% increase in retained earnings post dividend, from RM289.15 million to RM499.64 million.

The dividend has been rising over the years — from 2% in 2018 to 2.5% in 2019, 3.5% in 2020 and 4.1% in 2021.

Going forward, LTAT seeks to grow its assets under management, which amounted to RM10.33 billion as of Dec 31, 2022, as well as to boost its solvency ratio beyond 100%.

Speaking to reporters later, defence minister Mohamad Hasan said he has advised the board to ensure that the fund was well-managed given the sacrifices made by the armed forces.

“There is enough talent and expertise within the ministry and the LTAT to ensure that,” he said.

Mohamad also expressed hope that the fund would be able to declare a dividend of the same quantum this year, if not higher.