The RM43.9 million (US$9.79 million) investment loss by Khazanah Nasional and Permodalan Nasional Berhad has been widely criticised as it involved public funds, prompting an investigation by the Malaysian Anti-Corruption Commission (MACC).
The RM43.9 million investment loss by Khazanah Nasional and Permodalan Nasional Berhad has been widely criticised as it involved public funds, prompting an investigation by the Malaysia n Anti-Corruption Commission .KUALA LUMPUR: Malaysia ’s Khazanah Nasional will continue to support local start-ups despite the heat that it had received over what the public perceived to be its failed investment in fashion e-commerce platform FashionValet.
“Venture capital will remain in Khazanah’s mandate and Khazanah will continue efforts to support start-ups and the venture capital ecosystem, while improving the control mechanism,” Mr Amir said on Thursday. The pandemic had led to the eventual closure of its physical stores and a significant decline in demand for its premium clothing - the core of FashionValet’s product offering.
Lastly, Mr Amir said that funding challenges was another factor as FashionValet struggled with cash flow constraints. And although the firm had sought new capital, existing shareholders like Khazanah and PNB were unwilling to increase their investment due to the associated risks. The minister added that both Khazanah and PNB had acknowledged that FashionValet’s returns had fallen short of projections. However, the government plans to review the governance process to strengthen the management of government-linked companies in Malaysia.
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