Malaysia Armed Forces Fund Prepares First Private Credit Investment Strategy

Malaysia’s Armed Forces Fund Board, or LTAT, is preparing its first move into private credit as it seeks defensive investments with high-single-digit returns.

LTAT managed more than MYR13bn (USD3.29bn) at the end of 2025.

Chief investment officer Ahmad Farouk said the Malaysia private credit strategy remains at the governance and manager-selection stage, with the pension fund prioritising capital preservation.

Farouk said institutional investors should support SMEs that struggle to secure bank financing while maintaining prudent lending standards.