By TNS News Team
KUALA LUMPUR, Nov 3 – Prime Minister Datuk Seri Anwar Ibrahim has ordered Khazanah Nasional Berhad to conduct an internal audit after its RM43.9 million loss in an investment tied to FashionValet Sdn Bhd.
This directive underscores the government’s commitment to transparency and accountability within government-linked companies (GLCs) to prevent similar setbacks.
Announcing the decision on X (formerly Twitter), Anwar, who is also Chairman of Khazanah Nasional, stressed the need for stronger oversight within the sovereign fund.
“As Chairman, I have directed Khazanah Nasional Berhad to carry out an internal audit to investigate the issues related to recent investment losses amounting to RM43.9 million,” he stated.
This audit is part of Anwar’s broader initiative to strengthen governance across Malaysia’s GLCs. Recently, he also instructed the National Audit Department (JAN) to audit 2,000 GLCs, aiming to enhance corporate governance, ensure accountability, and confirm that these entities fulfill their mandates.
FashionValet, founded in 2010 by entrepreneur couple Vivy Yusof and Fadzaruddin Shah Anuar, sought to bring Southeast Asian fashion to a global audience. Despite early optimism, the investment struggled to yield returns due to economic pressures, intense market competition, and operational challenges in the rapidly evolving e-commerce landscape.
In 2018, Khazanah Nasional and Permodalan Nasional Berhad (PNB) invested a combined RM47 million in FashionValet, with Khazanah contributing RM27 million. By late 2023, both entities divested their stakes for just RM3.1 million, resulting in a significant financial loss.
As Malaysia’s sovereign wealth fund, Khazanah maintains a diverse portfolio across sectors like technology, healthcare, and telecommunications.
This audit will examine its decision-making processes and risk management, aiming to establish a model of governance for other GLCs.
Anwar’s directive indicates a potential shift in the oversight of public investments. The results of the audit, especially in high-profile cases like FashionValet, are expected to set new standards for accountability within GLCs.
His commitment reinforces the government’s focus on financial responsibility and transparency, essential to sustaining public trust and building a resilient economy.
- TNS News