LTAT denies selling its land in Batu Kawan, says asset disposal plan to diversify investments and reduce reliance on Bousted-Affin

KUALA LUMPUR, Dec 6 — The Armed Forces Fund Board (LTAT) has clarified that the restructuring plan referred to in Parliament yesterday has not been cancelled, but has instead been refined to address current challenges and emerging opportunities, aligning with the latest market conditions.

LTAT, in a statement today, explained that this updated restructuring plan demonstrates the responsiveness and sensitivity of both LTAT and the Ministry of Defence in tackling financial stability issues, managing liabilities, and diversifying investments. The plan also aims to build a competitive and sustainable portfolio which benefits all stakeholders.

According to LTAT, the asset disposal initiative is a strategic move, not a short-term solution, designed to reduce excessive dependence on investments in Boustead-Affin. This aligns with recommendations from the Public Accounts Committee (PAC), which urged LTAT to diversify its portfolio.

“The governance and transparent asset disposal process in each LTAT group entity is to ensure optimal value generation, which will be reinvested into high-performing and sustainable assets, to enhance LTAT’s financial resilience and ensure the welfare of LTAT contributors in the long term. All transactions will be conducted with the highest levels of transparency and integrity,” the statement added.

LTAT further emphasised that all transactions are aligned with the country’s strategic interests, as outlined in the MADANI Economy Framework.

It also denied the claims that it sold land in Batu Kawan, as neither it nor its subsidiaries own any land in Batu Kawan, calling the statement false and misleading.

Regarding the transaction with Eco World Development Group Bhd (EcoWorld), LTAT explained that Boustead Properties (BProp) invited 19 companies, including government-linked companies (GLCs) and private entities, to participate in the Request for Proposal (RFP) process.

Out of the 10 companies which expressed interest, only EcoWorld, a Bumiputera-majority-owned company, submitted a proposal, following a rigorous and transparent tender process.

“EcoWorld, through its joint venture Mutiara Balau Sdn Bhd (MBSB), in which BProp is a minority shareholder, was selected after a comprehensive evaluation,” the statement added.

LTAT added that the disposal of the Semenyih land to MBSB is intended to spur suburban development, increase value, and support the goals of the MADANI economy. Proceeds from the sale will fund Boustead Plantation Bhd’s oil palm replanting programme, ensuring land restoration and enhanced operational efficiency.

“This strategy bolsters long-term sustainability, and aligns with national priorities for economic growth by optimising land use,” LTAT said, adding that its corporate transactions with GLCs also contribute to advancing strategic sectors such as semiconductors and renewable energy, which play a pivotal role in Malaysia’s economic progress.

LTAT further highlighted that its new restructuring plan aims to reduce asset concentration in Boustead-Affin investments to 35 per cent, a shift from the previous target of 50 per cent. This adjustment provides a more sustainable and diversified approach to addressing LTAT’s portfolio challenges, in line with the recommendations of the Public Accounts Committee (PAC).

Yesterday, PAC member, Dr Halimah Ali, voiced concerns over several issues related to LTAT.

She claimed that more than 10 months had passed since the discontinuation of the LTAT Strategic Plan 2023-2025, yet no alternative plan has been announced.

Speaking during a briefing session on the PAC Report on LTAT in the Dewan Rakyat, Dr Halimah noted that several asset sale transactions were reportedly carried out, but were not publicly disclosed by Boustead. — Bernama