LTAT remains key Affin Bank shareholder despite Sarawak govt stake acquisition

KUCHING: The Armed Forces Fund Board (LTAT) remains a key shareholder in Affin Bank, despite the Sarawak government acquiring part of its stake in the bank.

Deputy Defence Minister Adly Zahari said that as an institution responsible for managing the retirement funds of armed forces personnel, the Sarawak government’s acquisition of a portion of LTAT’s stake in Affin Bank is a strategic move to ensure the growth and protection of LTAT contributors’ funds.

He assured that this strategic decision is expected to generate positive returns in the form of competitive and sustainable dividends for LTAT contributors.

“I would also like to emphasise that this move is a reinvestment strategy aimed at optimising LTAT’s portfolio and ensuring long-term value creation for its contributors.

“The strategy will also create opportunities for LTAT to invest in portfolios with higher potential returns, strengthening its financial position and maximising benefits for our contributors.

“Moving forward, LTAT is committed to reinforcing its investment portfolio to guarantee consistent growth and stability of the fund, ensuring contributors’ savings grow securely,” he said.

He said this in his address during the signing ceremony of the Share and Purchase Agreement between the Sarawak government, LTAT, and Boustead Holdings Berhad here, today (Sept 27).

In addition, Adly said that this move opens up opportunities for LTAT to restructure its investment portfolio more effectively, in line with the goals and strategies outlined in LTAT’s Strategic Asset Allocation (SAA) framework.

Through this restructuring, he asserted that LTAT can optimise its growth potential and minimise risks, further strengthening its fund position in the face of dynamic market challenges.

“By transferring part of its stake to a shareholder with strong financial capabilities, we are confident that this strategic move will significantly enhance the value of Affin Bank through business growth and long-term profit improvement.

“As a retirement fund manager, LTAT must prioritise asset diversification and manage its investments with a focus on stability and sustained returns,” he added.

Adly also expressed optimism about the strategic opportunities that lie ahead, stating that the agreement is expected to bring significant benefits to the retirement savings of the Malaysian Armed Forces personnel under LTAT.

Through this strategic investment collaboration, he is confident that the retirement funds of armed forces personnel will be managed more effectively and efficiently, ensuring better and more stable returns.

“This not only enhances financial stability post-retirement but also provides assurance for a brighter future ahead,” he said.