For the past two weeks, Malaysian social media has been abuzz with anger over the significant losses incurred by Khazanah Nasional and Permodalan Nasional Berhad (PNB) after investing in FashionValet—a company touted as an e-commerce star in Malaysia, co-founded by entrepreneurial couple Vivy Sofinas Yusof and Fadzarudin Shah Anuar.
Curiously, the uproar began only recently, despite FashionValet's reported firesale back in September. A bit late to the party, perhaps? Regardless, the outrage is legitimate. How did decision-makers approve a multimillion-dollar investment into a company that, for five straight years, has operated in the red?
As expected, not everyone on the FashionValet board took this criticism kindly. Aireen Omar, one of the directors and a former AirAsia CEO, brushed off public grievances with a dismissive and defensive tone.
“There is no such thing as scandal or fraud or siphoning of money. Not at all!” she declared, adding, “I mean, I sit on the board, and I look at the numbers, and definitely, there’s no such thing, lah!” She went so far as to tell the public to "get a life."
This reasoning may work on another planet, but it doesn't hold up here. Fraud may or may not be part of the story—the Malaysian Anti-Corruption Commission (MACC) is investigating—but whether funds were "siphoned" isn’t the only question. It’s about the cashout: How much were the founders paying themselves through salaries, bonuses, and benefits during those years of consistent losses?
Aliff Ahmad, founder of Scrut, was among the first to flag the irregularities at FashionValet, as early as 2019. His subsequent scrutiny in 2020 added fuel to a broader public sentiment: frustration with how the well-connected often seem immune to accountability, even when public funds are at stake.
"Look at this—RM2.2 million written off for web development! Check the note below: the auditor reported they couldn’t get confirmation from either party.
All four certified auditors agreed, meaning the company paid RM2.2 million, but the work wasn’t completed, and they terminated the contract without any documentation. RM2.2 million just vanished like that?!!
In my opinion, this is clearly a cash-out. Here’s why:
1. Isn’t Fashion Valet a tech startup that has had a website since before 2016? Why would they suddenly need a new one?
2. RM2.2 million to develop or upgrade a site like FV’s is ridiculously overpriced. By the way, I’m the director of a software house and IT firm, so I know the going rates.
3. FV’s website only uses a Magento template.
4. If we assume it was simply a bad decision, that would mean the management is incredibly incompetent. What kind of tech startup gets conned like this?
5. And what kind of entrepreneur makes such a foolish decision?" - Aliff Ahmad.
So perhaps Aireen Omar has all the answers?
The company’s losses are only part of the story. The lavish lifestyles, luxurious designer handbags, and displays of wealth have grated on the nerves of everyday Malaysians facing a harsh economic reality. For most of u plebians, FashionValet’s image clashes with the struggle to make ends meet, a struggle we have to endure without access to PNB or Khazanah’s backing.
Malaysians want transparency. Show us the pitch deck that convinced Khazanah and PNB to back FashionValet. Was it the couple’s business acumen, or were other "connections" at play?
The truth is, most Malaysians do “have a life”—a life filled with bills, mortgage payments, and sometimes multiple jobs just to get by. It's just we don't have a cable to back us.
Ahmad Mustakim is a content creator under the Newswav Creator programme, where you get to express yourself, be a citizen journalist, and at the same time monetize your content & reach millions of users on Newswav. Log in to creator.newswav.com and become a Newswav Creator now!
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