In a statement today, LTAT unveiled its Strategic Plan 2023 – 2025, with hopes of becoming a sustainable provident fund in the near future.
Under the plan, the fund seeks to branch out its focus and grow its assets under management (AUM) to RM15 billion, from its current value of RM9.3 billion.
It also targets to achieve a consistent 5% return for its members while recouping the RM3.3 billion investment cost in troubled Boustead-related businesses.
Defence minister Mohamad Hasan said the new plan will put LTAT in an advantageous position to navigate challenges and safeguard the welfare of its members.
“With the launch of the LTAT Strategic Plan 2023-2025 providing clarity for its way forward, LTAT will now be in a better position to withstand headwinds and protect the social well-being of its members, catalysing the transformation into a sustainable provident fund,” he said.
Following the plan’s implementation, LTAT hopes to relist Boustead Holdings Bhd, after privatising it in a RM703.2 million – equivalent to 85.5 sen per share – transaction in June.
LTAT is a government-established organisation which is responsible for overseeing pension funds for members and veterans of the armed forces in Malaysia. It is a major shareholder in several listed companies – Affin Bank Bhd, Boustead Heavy Industries Corp Bhd (BHIC), Boustead Plantations Bhd and Pharmaniaga Bhd.
Recent mishaps
Two of its subsidiaries have been involved in unfortunate situations recently.
In August last year, a forensic audit report concerning the delayed delivery of navy frigates under the RM9 billion littoral combat ship project was published publicly on Parliament’s website.
The report was prepared for BHIC, a major shareholder of Boustead Naval Shipyard Sdn Bhd (BNS), which is the defence ministry contractor to build the frigates.
Soon after the release of the Public Accounts Committee’s report, former BNS managing director Ahmad Ramli Nor faced charges of three counts of criminal breach of trust, involving an amount of RM21.08 million.
Another of Boustead’s subsidiaries, Pharmaniaga, slipped into Bursa Malaysia’s Practice Note 17 status on Feb 27 this year after booking provisions of RM552.3 million for unsold Covid-19 vaccines, which resulted in negative equity on its balance sheet.
In June, the pharmaceutical group unveiled a strategic plan to chart a path towards a “resilient recovery” across its business segments.
As of noon, BHIC’s share price was up 1.5 sen or 4.5% at 34.5 sen, giving it a market capitalisation of RM85.72 million.
Meanwhile, Pharmaniaga’s share price was up 0.5 sen or 1.3% at 39 sen, giving it a market capitalisation of RM510.98 million.