25/03/2026

BIZ & FINANCE WEDNESDAY | MAR 25, 2026

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LTAT to gradually tap foreign markets to enhance returns

Kelington secures breakthrough semiconductor contract in India worth US$105m

KUALA LUMPUR: The Armed Forces Fund Board (LTAT) plans to gradually expand its investment footprint overseas as part of efforts to enhance portfolio returns, with a small deployment expected as early as this year. LTAT chief executive Mohammad Ashraf Md Radzi said the fund targets to allocate up to 20% of its overall portfolio to overseas investments under its strategic asset allocation, although the initial step would involve a relatively small deployment. For a start, LTAT plans to work with external fund managers to manage its overseas investments to ensure a cautious and structured approach. “Any deployment abroad would be carefully structured and assessed, particularly in light of prevailing geopolitical uncertainties that could affect global market fundamentals. Naturally, we have a few foreign markets that offer much better returns. But in the current scenario, there is geopolitical uncertainty. So, that will shift market fundamentals. So, we just need to tread carefully,” Mohammad Ashraf told Bernama. Sectors such as technology are among the segments LTAT is looking to tap into as part of

o Armed Forces Fund Board aims to allocate up to 20% of overall portfolio for overseas investments, with a small deployment initially, says CEO

PETALING JAYA: Integrated engineering solutions provider Kelington Group Bhd, through wholly owned subsidiary Kelington Engineering (S) Pte Ltd, has accepted a letter of award (LoA) worth US$105 million (RM413.7 million) to deliver a turnkey solution for a gas distribution system pro ject for a semiconductor wafer fabrication facility in Gujarat, India. The LoA was awarded by a leading semiconductor manufacturer in India and involves the delivery of a comprehensive gas distribution system as part of the project’s mission-critical infrastructure. Semiconductor fabrication processes require a continuous and highly controlled supply of ultra-high-purity gases to ensure precision, yield and operational reliability. Works will begin immediately and are scheduled for completion by July 2028. Kelington CEO Lim Seng Chuan said the project is India’s first pure-play semi conductor foundry, backed by strong government capital funding and support, including commitments to ensure reliable infrastructure, such as power and water supply. “These factors provide a strong foun dation for the successful execution and delivery of the project. “This marks a significant milestone and a breakthrough for the group as we secure our first major contract in India’s semiconductor sector, positioning the group at an early stage of a high-growth market with strong long-term opportunities,“ he said. Lim said this contract award reinforces confidence in the group’s ability to deliver highly specialised and mission-critical infrastructure, built on its proven track record across established semiconductor hubs in China, Singapore, Malaysia and Europe. “We are confident of replicating our execution capabilities in India and will work closely with our client and project partners to ensure the successful and timely delivery of the facility.” Kelington earlier secured a purchase order for the supply of gas distribution system gas purifiers, worth US$10.4 million, for the same facility, which brings the total contract wins to US$115.4 million for the facility. The group has also secured three letters of intent amounting to US$17 million for additional scope at the same facility, with final terms and conditions currently being formalised, further expanding the group’s potential participation in the development. “These additional pipeline opportunities reflect our client’s confidence in our technical capabilities and execution track record. “We are encouraged by the expanding scope of our involvement and remain focused on converting these opportunities into firm contracts as the project progresses,“ Lim said. Year to date, the group has secured new contracts worth a total of about RM555 million. Together with its outstanding order book of RM1.4 billion as of Dec 31, 2025, this provides strong earnings visibility in the coming years.

Mohammad Ashraf says LTAT plans to work with external fund managers to manage its overseas investments to ensure a cautious and structured approach. – BERNAMAPIC

its overseas investment strategy. On the timeline, Mohammad Ashraf said the fund hopes to begin the process if it obtains the necessary approvals from regulators, including Bank Negara Malaysia and the Ministry of Finance. “We will continue dis cussions with the regulators while also monitoring market conditions.” The domestic investments remain viable, he said, although

attractive returns with manageable risks. “So naturally, if AI or tech-based segments offer decent returns, with comfortable proba bilities, then we will definitely consider.” He said LTAT continues to monitor global market risks, including potential triggers for a financial crisis, and that the fund’s risk management framework remains critical in navigating market volatility, ensuring the sustainability of dividend payments for contributors through the buildup of reserves.

6.6%, present challenges for LTAT in achieving its targeted minimum dividend payout of 5%. He noted that LTAT maintains a disciplined cost structure, with expenditure capped at about 1% of assets under management, resulting in a blended return on investment target of around 6%. Mohammad Ashraf said LTAT

is open to artificial intelligence (AI) or technology-based segments if they offer

the returns available in the Malaysian market, with a benchmark performance of about

Malaysia must emerge as credible alternative as investors reassess risks, says Tengku Zafrul

KUALA LUMPUR: Malaysia must position itself as a credible and compelling alternative as global investors reassess risks amid the crisis in West Asia, said Malaysian Investment Development Authority chairman Tengku Datuk Seri Zafrul Abdul Aziz ( pic ). In a Facebook post yesterday, he said the US-Iran conflict is contributing to higher energy prices, increased logistics costs and renewed inflationary pressures. However, Tengku Zafrul said history shows that periods of disruption reorder the global economy, with capital shifting, supply chains realigning and investors reassessing risk – creating strategic openings that Malaysia must be ready to seize. “Investors, sovereign wealth funds, and multinational firms are inherently cautious, and naturally gravitate towards jurisdictions that offer stability, policy clarity, and institutional credibility. In a more uncertain world, these qualities become even more valuable. “Malaysia is well positioned in this regard, being politically stable, strategically located at the heart of Asean, deeply integrated into global trade networks, and capable of bridging regions through its strengths in Islamic finance, a trusted halal ecosystem, and long-standing ties with both East Asia and the Gulf,” he said. He said one area of clear opportunity lies in Gulf capital, noting that sovereign wealth funds in the region collectively managing

“If investors are reassessing risk, Malaysia must present itself as a credible and compelling alternative. If capital is seeking new destinations, we must offer a strong pipeline of bankable, execution-ready projects. If the world is becoming more frag mented, Malaysia must stand out as a place where stability, con nectivity, and credibility con verge,” he said. He noted that this would

about US$5 trillion (RM19.7 trillion). Amid current regional uncertainty, a portion of this capital is likely to seek diver sification for both risk manage ment and strategic allocation. “Malaysia is well placed to attract a share of these flows. As a Muslim-majority country with longstanding economic and cultural ties to the region, we are a familiar and credible partner,” Tengku Zafrul said. He added that the sectors of interest align with national

require discipline and focus, with efficient approvals, coordinated investor facilitation and prioritisation of strategic sectors. He said Malaysia must work harder to promote and position itself as a safe haven for global capital. “Additionally, we must ensure that the benefits of investment are widely felt, through job creation, infrastructure development, and greater economic resilience for our people. All these must continue to be complemented by disciplined economic and fiscal reforms. “Malaysia’s opportunity does not lie in the crisis itself, but in our ability and capacity to respond to a changing world. That is the essence of economic statecraft, not merely to withstand external shocks and survive, but to navigate them with clarity, purpose and resolve.” – Bernama

priorities, including data centres, renewable energy, power and grid infrastructure, logistics, industrial parks, healthcare, food security, halal goods and services, as well as advanced manufacturing. Additionally, he said as Malaysia and the Gulf Cooperation Council commenced free trade agreement (FTA) negotiations in May 2025, the timing could not have been more opportune. “This FTA is significant not only from a trade perspective, but as a signal of deepening institutional alignment and long term economic partnership supporting sustained investment mobilisation.” Tengku Zafrul emphasised that while Malaysia cannot control the course of global events, it can determine how it responds to them.