KUALA LUMPUR: The appointment of the new senior leadership at the Armed Forces Fund Board (LTAT) should be accompanied by a complete overhaul of management practices, said economists.
They called for a corporate restructuring and transformation, and not just a rebranding effort.
Malaysian University of Science and Technology economic professor Geoffrey Williams said LTAT's small size and changes in investee companies present an opportunity for a full restructuring and potential merger with other entities like Retirement Fund Inc, National Trust Fund and Khazanah Nasional Bhd to become a new Malaysian superfund.
"There must also be a review of the viability of LTAT as an independent government-linked investment company."
Williams stressed the importance of restating LTAT's corporate aims and governance through new vision, mission and values.
A key aspect of this restructuring, according to Williams, should be the development of completely new corporate and investment strategies to maximise returns.
"Incorporating strong environmental, social and governance elements should be at the core of the new company. This must be credible, accountable and transparent, and involve new people as directors, senior managers, executive managers and independent advisers," he said.
Williams also emphasised the need for a comprehensive restructuring to address LTAT's past losses and enhance the organisation's viability under a new management.
He said the losses were largely attributed to past management practices.
"The privatisation of non-core assets such as the University of Nottingham Malaysia should be back on the agenda.
"Loss-making segments must be placed in a responsible privatisation programme rather than be shut down or cut which would cause job losses."
Nusantara Academy for Strategic Research senior fellow Dr Azmi Hassan stated the need for the new chairman and chief executive to swiftly implement a plan that reassures shareholders of LTAT's ability to recover and resume dividend payouts.
Azmi noted the necessity of aligning the restructuring efforts with the goals of the administration to avoid further setbacks or disagreements regarding LTAT's direction.
"The critical point is to establish a clear plan of action, whether through restructuring or a revised strategic plan, that has the support of the current administration. This is crucial for restoring confidence and ensuring LTAT's long-term viability."
LTAT announced last Friday the appointment of General Tan Sri Azizan Ariffin as chairman and Mohammad Ashraf Md Radzi as chief executive effective April 1.
According to LTAT, Azizan's extensive background in military affairs, diplomacy and leadership development will be instrumental in guiding LTAT towards its strategic objectives.
Their appointments follow the departure of former chairman General Tan Sri Raja Mohamed Affandi Raja Mohamed Noor on Feb 8 and former chief executive Datuk Ahmad Nazim Abd Rahman on Jan 31.