Kuala Lumpur, 22 August 2025 – Khazanah Nasional Bhd has reaffirmed its unwavering commitment to fostering Malaysia’s venture capital (VC) landscape, while acknowledging the findings of the Public Accounts Committee (PAC) regarding its past investment in fashion-focused e-commerce platform FashionValet.
In a formal statement, the sovereign wealth fund highlighted that VC investments—despite being inherently high-risk—are vital for driving innovation, catalyzing start-ups, and bolstering the nation’s long‑term competitiveness. Khazanah emphasised that assessing the performance of such investments should be done at the portfolio level, rather than on a case-by-case basis.
Khazanah welcomed PAC’s recognition of its robust governance framework, which features multi-stage approval procedures, independent risk evaluations, and routine oversight by its Portfolio Management Committee and Investment Committee. The fund expressed appreciation for this endorsement, stating that it “ensures our investment decisions are conducted in line with the highest standards of governance.”
The statement also acknowledged that FashionValet’s strategy was adversely affected by unforeseen external shocks—namely, challenges in its omnichannel expansion, the impact of the COVID‑19 pandemic, and shifts in consumer behavior.
Further, Khazanah confirmed it would heed PAC’s recommendation to enhance communication around its VC strategy—particularly regarding its high‑risk nature and its role in nurturing innovation. “We shall strive to balance financial discipline with nation-building objectives, guided by strong governance and clear accountability. This will ensure sustainable long‑term value creation, while positively contributing to Malaysia’s socio‑economic development,” the fund stated.
