The Malaysian Insight

THE government will continue to issue unit trusts to Armed Forces Fund Board (LTAT) depositors on top of annual dividends, Defence Minister Mohamad Sabu said.

He said this would assist depositors, who members of the armed forces, to build savings that would cover their expenses upon retirement.

“The unit trust is credited into their accounts so they will gain some profit from the units after they retire from service. If we just withdraw cash to pay depositors, any amount of cash would not be enough.

“We will continue with this practice. It is the best way to protect the interests of LTAT depositors,” he told the Dewan Rakyat during question time this morning.

Mohamad was taking questions from Ahmad Amzad Mohamed @ Hashim (PAS-Kuala Terengganu), who had asked about the special bonus given to depositors in form of Affin-Hwang unit trusts.

Amzad said the value of the units was falling and asked if the government would consider giving cash instead.

Abdullah Sani Abdul Hamid (PKR-Kapar) also asked the government why LTAT was paying depositors in two forms.

Earlier in his question, Amzad had also asked Mohamad to explain why LTAT’s nett profits and 6% dividend paid to depositors were falling three years in a row.

Mohamad said LTAT dividend depended on the profits from the fund’s yearly investments, real estate and stock sales, rental collection and fixed deposit interests.

“From 2015 to 2017, LTAT revenue was affected by stock market instability. We will ensure that we make new investments that will deliver profits.

“I will see to the restructuring of LTAT to ensure it is more efficient,” he said, adding that LTAT was still among the best managed funds around.

“We will maintain the good practices (at LTAT) while we go after whoever that steals.”

Mohamad said the latest LTAT dividend will be announced in February. – December 11, 2018.