KUALA LUMPUR: The restructuring plan for Boustead Holdings Bhd could significantly benefit the Armed Forces Fund Board (LTAT), according to economists.
IDEAS Malaysia economist and assistant research manager Doris Liew emphasised the importance of diversification, aligning with the Public Accounts Committee's (PAC) recommendations for LTAT.
"I also commend the PAC for its proactive approach in following up on its March inquiry on LTAT and ensuring accountability among the parties involved in decision-making.
"The PAC has played an essential role in providing checks and balances to the governance of statutory bodies, contributing to greater transparency and accountability in the management of public funds.
"This vigilance is vital for safeguarding the interests of Malaysians and preventing potential mismanagement that could harm the country's economic stability," she told Business Times.
Dr Azmi Hassan, a senior fellow at the Nusantara Academy for Strategic Research, echoed concerns about halting the restructuring, noting it would negatively impact both Boustead Holdings and LTAT.
"I believe the reason they want to restructure LTAT is because they are in the red right now, and PAC made that finding."
He attributed the delay in LTAT's strategic plan implementation to a change in Malaysia's defence minister, from Datuk Seri Mohamad Hasan to Datuk Seri Mohamed Khaled Nordin.
Mindef and LTAT have been given a two-month deadline to report back to the PAC on the actions taken in response to the committee's recommendations.
Azmi said Mindef and LTAT should be able to act within two months if they are restructuring the original strategic plan, but more time would be necessary if a new plan is being developed.
"However, if LTAT decided to create a new restructuring plan, then two months is not enough."
Putra Business School's Master of Business Administration programme director Associate Professor Dr Ahmed Razman Abdul Latiff said whether LTAT chooses to revert to the original plan or develop a new one, the decision must be made collectively by the board of directors with the primary goal of acting in the organisation's best interest.