In a move highlighting the push for transparency in public investments, Malaysian Prime Minister Datuk Seri Anwar Ibrahim has ordered an internal audit into Khazanah Nasional Berhad's substantial loss of RM43.9 million on its investment in the e-commerce platform FashionValet. The directive, announced today, aims to clarify the factors behind this significant financial shortfall and to reinforce governance standards across government-linked companies (GLCs).
Anwar’s decision comes amid increasing scrutiny of how public funds are managed in Malaysia’s investment landscape. In a brief statement on social media, the Prime Minister stressed his commitment to accountability, explaining that as Khazanah's chairman, he has instructed the fund to conduct a comprehensive internal audit. This audit is expected to delve into the details of the RM43.9 million loss and uncover any missteps or weaknesses in the investment process.
This recent call for internal examination also aligns with Anwar’s broader initiative to enhance governance practices within government-linked entities. The Prime Minister previously announced plans for the National Audit Department to assess around 2,000 GLCs, with the objective of ensuring these entities remain transparent, efficient, and aligned with their intended responsibilities.
The loss from Khazanah’s stake in FashionValet has drawn public attention as it underscores the potential risks tied to investments made by government-linked institutions. In 2018, both Khazanah and Permodalan Nasional Berhad (PNB) collectively invested RM47 million in FashionValet, with Khazanah’s contribution totaling RM27 million. The two entities eventually sold their shares for a minimal return of RM3.1 million, translating into a substantial financial loss.
In response to this development, Khazanah clarified its decision to divest, explaining that it chose to transfer its stake to a third party better positioned to drive FashionValet’s future growth. Meanwhile, PNB highlighted that although the divestment resulted in a loss of RM18.7 million, this figure represents a relatively small proportion of its RM337 billion in managed assets. In 2023 alone, PNB generated RM16.4 billion in investment income, suggesting that this isolated loss does not pose a major threat to its broader financial stability.
The Malaysian Anti-Corruption Commission (MACC) has also launched an investigation into the matter, adding another layer of oversight to the situation. Addressing concerns about his influence as Khazanah’s chairman, Anwar reassured the public that he would not interfere with the MACC’s ongoing probe. He emphasized his commitment to supporting a transparent process, stating that the MACC would have full autonomy to conduct its investigation without interference from his office.
This unfolding story reflects Anwar’s administration’s intensified focus on enhancing accountability among government-linked investment companies. By initiating this audit and cooperating with independent investigations, Anwar appears keen on reforming governance standards within these institutions, signaling a new chapter in public investment management.
Information Source: Malay Mail, FMT
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