The Armed Forces Fund Board (LTAT) will be paying 12 per cent dividend and bonus for the financial year ended Dec 31, 2016 (FY16), involving a sum of RM685.5 million.

Defence Minister Datuk Seri Hishammuddin Hussein said payout comprised of 6 per cent dividend and 6 per cent special bonus in the form of unit trusts for active members.

He said the rate declared was higher than the average yearly dividend and bonus of 11.3 per cent since LTAT's was set up 44 years ago.

The dividends and bonuses to contributing members will be credited into their accounts starting tomorrow, he said in a statement today.

He said the LTAT's unaudited total profit rose 5.8 per cent to RM811 million in FY16 from RM766.8 million in FY15.

For the year under review, the fund's total assets increased 2.2 per cent to RM9.5 billion from RM9.3 billion in the previous year, while members' contribution stood at RM8.6 billion compared with RM9.1 billion previously.

On LTAT's performance, Hishammuddin said the fund had provided various payouts, incentives and contributions to its members.

He said these included payouts amounted to RM15.9 million to 1,952 contributors who were eligible to buy a house or land under the Housing Withdrawal Scheme.

The fund, through Perbadanan Perwira Niaga Malaysia, provides consumers goods below market prices to help members of the armed forces cope with the rising cost of living, involving subsidies amounted to RM10.6 million, he said. - BERNAMA