# LTAT and Boustead Holdings: The Armed Forces Fund and Its Corporate Arm

> The Armed Forces Fund Board (LTAT) is the retirement fund for members of the Malaysian Armed Forces, and Boustead Holdings is the conglomerate it wholly owns and is now rebalancing under the Project Earth plan.

- Category: companies
- Language: en
- Status: published
- Updated: 2026-07-28
- Canonical: https://negaraku.md/en/companies/ltat-and-boustead

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Every Malaysian soldier and sailor sets aside a portion of their salary in one and the same place — and that money, for years, hinged on the fate of a debt-laden conglomerate. This is the story of LTAT and Boustead Holdings.

## What is LTAT and whom does it protect?

The Armed Forces Fund Board (Lembaga Tabung Angkatan Tentera, LTAT) is a statutory body established under the **Armed Forces Fund Act 1973 (Act 101)**. It functions as the retirement fund for members of the Malaysian Armed Forces (MAF) — the equivalent of the EPF but dedicated to service personnel.

For mandatory contributors (Other Ranks personnel), **10% of the monthly salary** is deducted as a contribution, and the government tops it up by **15%** — meaning 25% of the salary is credited each month. Voluntary contributors, meanwhile, may contribute between **RM25 and RM2,000** a month.

Returns to contributors have stayed stable in recent years. For financial year 2023, LTAT declared a **5%** dividend totalling **RM485.08 million** to 123,380 contributors. For financial year 2025, the dividend rose to **5.35%** (RM524.74 million) — its highest payout since 2017.

| Snapshot | Details |
| --- | --- |
| Established under | Armed Forces Fund Act 1973 (Act 101) |
| Type | Statutory body / retirement fund |
| Mandatory contributors | 10% salary + 15% government |
| Voluntary contributors | RM25–RM2,000 a month |
| FY2023 dividend | 5% (RM485.08 million, 123,380 contributors) |
| FY2025 dividend | 5.35% (RM524.74 million) |
| Chief Executive Officer | Mohammad Ashraf Md Radzi |
| Chairman | General (Rtd) Tan Sri Azizan Ariffin |

## How did Boustead become LTAT's corporate arm?

A large share of contributors' savings is invested not in bonds or listed equities, but in **Boustead Holdings Berhad** — a conglomerate spanning plantations, pharmaceuticals, heavy defence industry, property and trading.

When Boustead's performance deteriorated, LTAT decided to take over the company entirely. Through a voluntary takeover offer for the remaining 40.58% of shares at **85.5 sen** (valued at RM703.2 million), LTAT's holding rose to about **97.63%**. As a result, Boustead Holdings was **delisted from the Main Market of Bursa Malaysia on 28 June 2023**, in line with Paragraph 16.07(a) of the Listing Requirements.

The consolidation also involved the group's subsidiaries. Boustead Plantations was taken over entirely at **RM1.55 per share** — about **RM1.11 billion** to buy the remaining 32% — raising the LTAT and Boustead holding from 68% to 100%.

| Key strategic holdings | Estimated holding |
| --- | --- |
| Boustead Holdings Bhd | ~100% |
| Pharmaniaga Bhd (pharmaceuticals) | ~54.9% |
| Boustead Plantations Bhd (plantations) | 100% (delisted) |
| Affin Bank Bhd (banking) | ~22% |

## Why does LTAT need to be rebalanced?

The problem was not merely one weak company, but the structure of the fund itself. LTAT was overexposed to strategic assets that delivered low returns — estimated at only around **2.9%** — compared with its far smaller fixed-income exposure.

The earlier recovery plan, **Project Moonshot**, has been suspended since 2023, leaving the Boustead group with a debt burden of about **RM3.4 billion**. The Public Accounts Committee (PAC) in November 2024 warned that further delay could force LTAT to dispose of assets, with Boustead's financial troubles potentially eroding up to half of LTAT's funds — about **RM5 billion** of contributors' money out of total assets of around **RM11.5 billion**.

In its place, LTAT introduced **Project Earth** — approved by the board on **9 August 2024** and reported to the Cabinet on **13 December 2024**. Its target: to reduce strategic-asset holdings from around **56%** to **35%** within three years, while raising the fixed-income allocation to 20%–25%. According to Chief Executive Officer Mohammad Ashraf Md Radzi, the fund manages assets of about **RM13.6 billion** and aims to avoid a "fire sale" by monetising assets in stages — including the possible re-listing of units such as Boustead Plantations once their finances recover.

## What comes next

Project Earth is still in the early stages of implementation, and its success depends on LTAT's ability to monetise assets without harming contributor value. Things to watch: the annual dividend rate (an indicator of the fund's health), progress in reducing strategic holdings towards 35%, the resolution of the Boustead group's debt, and any re-listing of subsidiaries. For official information, refer to LTAT's annual reports and Ministry of Defence announcements.

## Sources

- Boustead To Be Removed From Bursa Malaysia's List June 28 — https://www.bernama.com/en/news.php?id=2200619 (Bernama)
- LTAT Contribution — https://jhev.gov.my/en/assistance-for-veteran/ltat-contribution (Jabatan Hal Ehwal Veteran (JHEV))
- Govt plans 'Project Earth' to overhaul LTAT, restructure Boustead — https://theedgemalaysia.com/node/745683 (The Edge Malaysia)
- LTAT aims to reduce strategic asset holdings to 35% under Project Earth, says CEO — https://theedgemalaysia.com/node/746684 (The Edge Malaysia)
- LTAT to pare strategic assets to 35% of holdings in three years, says CEO — https://theedgemalaysia.com/node/749514 (The Edge Malaysia)
- LTAT declares 5% dividend for 2023, total payout at RM485m — https://theedgemalaysia.com/node/706930 (The Edge Malaysia)
- LTAT declares highest dividend in eight years at 5.35pc, payout exceeds RM524m — https://www.malaymail.com/news/malaysia/2026/03/12/ltat-declares-highest-dividend-in-eight-years-at-535pc-payout-exceeds-rm524m/212315 (Malay Mail)
- Deals Of 2024: Best Privatisation — Boustead Plantations' privatisation a boon for minorities — https://theedgemalaysia.com/node/739361 (The Edge Malaysia)

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