Malaysian Prime Minister Anwar Ibrahim ordered the sovereign wealth fund Khazanah Nasional Berhad to carry out an internal audit to investigate issues related to 43.9 million ringgit ($10 million) in investment losses.
The aim is to ensure that all government-linked companies “fulfill the demands of their respective responsibilities and functions”, Anwar said in a post on X on Saturday.
The internal audit “does not exclude” the state-owned asset manager Permodalan Nasional Bhd and other parties involved, he said in a follow-up post.
Anwar’s directive comes days after the Finance Ministry said the two entities invested a total of 47 million ringgit in the Malaysian online fashion retailer FashionValet in 2018, and received an offer in late 2023 for their stakes. They eventually sold it for 3.1 million ringgit — taking a loss that matches the amount Anwar mentioned in his post.
The Malaysian Anti-Corruption Commission (MACC) said on Saturday it had opened an investigation into the investment losses.
“The public is urged to allow space for the investigation to proceed and to avoid speculation or engage in ‘public trials’ against the parties involved,” MACC chief Azam Baki said.
The Finance Ministry said this week that the investment by Khazanah and PNB in FashionValet was aimed at supporting local tech entrepreneurs and digital retail firms. The total loss from the sale is “very small” compared to the total income Khazanah and PNB generated that year, it added.
Khazanah in a statement Friday said FashionValet faced challenges exacerbated by Covid-19, and its divestment “represented a responsible exit” to transfer ownership to a party that could help guide the troubled company. NXBT Partners, which is “led by a seasoned Malaysian entrepreneur”, offered to buy existing shareholders’ stakes and inject capital into the firm, it said.
FashionValet’s co-founders, Fadzarudin Shah Anuar and Vivy Yusof, said on Friday that they took full responsibility over the company’s losses and would resign.
“We attempted to expand the business too aggressively, and did not sufficiently plan for a rainy day,” they said.