BOGOR, West Java (April 29): The Malaysian government is committed to ensuring that investments made by the Armed Forces Fund Board (LTAT) in domestic and international companies yield consistent and robust returns, according to Defence Minister Datuk Seri Mohamed Khaled Nordin.

He said among the investments were those in companies with the potential to produce more products in Indonesia, such as pharmaceutical factory PT Errita Pharma in Bandung, which currently produces 118 products, similar to Pharmaniaga Bhd in Malaysia, which produces 380 types of medicines.

“We need to increase sales, distribution, and margins. Challenges such as loans from financial institutions need to be addressed as well.

“We can reasonably expect better returns for LTAT...with companies like PT Errita Pharma, which is 100% owned by Pharmaniaga,” he told reporters after visiting Pharmaniaga's subsidiary, PT Millennium Pharmacon International Tbk (MPI), here on Monday.

The minister said this when asked about Pharmaniaga's business developments and the positive impact on LTAT in terms of finance and dividend payments to its 123,380 contributors, consisting of military personnel.

LTAT holds a 57% stake in Pharmaniaga through Boustead Holdings. Pharmaniaga, in turn, holds a 73% stake in MPI.

The visit to pharmaceutical products, dietary supplements, and medical devices distribution company MPI was Mohamed Khaled's first agenda during his inaugural official visit to Indonesia since assuming the defence minister’s post.

He was accompanied by Malaysia's Ambassador to Indonesia Datuk Syed Md Hasrin Tengku Hussin, Defence Ministry secretary general Datuk Seri Isham Ishak, Defense Attaché Brig Gen Azrin Iskandar Zulkaply, Assistant Defense Attaché Commander Nor Izam Baharuddin, and Pharmaniaga executive director Zulkifli Jafar.

Mohamed Khaled is scheduled to meet with Defence Minister Prabowo Subianto, who is also the president elect of Indonesia, on Tuesday. 

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