KUALA LUMPUR (Nov 16): The Defence Ministry has tabled an amendment to the Tabung Angkatan Tentera Act 1973 that will see the removal of Bank Negara Malaysia's (BNM) representation from the investment panel set up under the law.

Another amendment sought in the Tabung Angkatan Tentera (Amendment) Act 2015 is the introduction of a new section (Section 9A), which seeks to impose compulsory contribution on officers to the fund.

Under the new Section 9A, an officer will see 10% of his monthly salary being deducted.

The Bill was tabled for first reading in Parliament today by Deputy Defence Minister Datuk Mohd Johari Baharum.

He said the Bill will be tabled for a second reading at this sitting.

An amendment to Section 6 of the Tabung Angkatan Tentera Act 1973 seeks to exclude the governor or deputy governor of BNM from the investment panel of the armed forces fund.

The Tabung Angkatan Tentera (Amendment) Act 2015 will amend Section 6 of the Act by deleting the paragraph (b) which provides for the governor or deputy governor to be a member of the investment panel.

Following the amendment, the investment panel will consist of a chairman who shall be appointed by the defence minister on the advice of the Armed Forces Fund Board; the chief of the armed forces staff; the deputy secretary-general to the Treasury; and two other members with business or financial experience to be appointed by the minister.

This is not the first time a Bill has been tabled to exclude the central bank's representation in an investment panel of funds set up by the government.

Last year, the government had decided to withdraw the controversial Internal Revenue Board Bill to remove BNM's representative from its investment panel.

On April 6, the Finance Ministry had tabled an amendment to the Retirement Fund Act 2007 that sought to remove BNM's sole representative from the investment panel under the fund.

And in May, Deputy Finance Minister Datuk Chua Tee Yong had announced that BNM had requested to pull out its sole representative from the investment panel in the Social Security Organisation (Socso) and the Employees Provident Fund to avoid conflict of interest.