KUALA LUMPUR, March 6 — The Armed Forces Fund Board (LTAT) has been recommended to review and restructure its investment strategy by diversifying investments and not focusing solely on investments in subsidiary companies, so as to reduce investment risks and income dependence.
According to the Auditor-General’s Report (LKAN) on the financial statements of Federal agencies for 2022, tabled in Parliament today, it has also been advised to enhance investment management governance by improving investment policies so prolonged loss-making stocks can be addressed.
LTAT also needs to ensure the declaration of dividends is based on real profits to avoid compromising the ability to pay eligible contributors in the future.
The report said its income in 2022 amounted to RM0.653 billion, recording an increase of RM0.139 billion or 27 per cent compared to 2021 at RM0.514 billion.
“LTAT’s net profit also increased by RM0.050 billion (13.1 per cent) to RM0.433 billion in 2022 compared to 2021, which was RM0.383 billion. LTAT made a 2022 dividend payment to contributors totalling RM0.476 billion (five per cent) using net profit and accumulated profits,” said the report.
However, LTAT’s reserves recorded negative balances for three consecutive years: RM0.376 billion in 2020, RM0.285 billion in 2021, and RM0.338 billion in 2022.
As of December 31, 2022, there are still 41 old stock portfolios that have not been addressed with unrealised losses totalling RM0.662 billion contributing to the remaining negative reserves.
— Bernama
