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Khazanah Nasional Berhad has welcomed the findings and recommendations from the Public Accounts Committee (PAC) regarding its past investment in FashionValet and its broader domestic venture capital (VC) strategy.
The sovereign wealth fund, in a statement, emphasized that these investments are part of its mission to support Malaysia’s growth and innovation.
During its sessions with the PAC, Khazanah explained that VC investments, like FashionValet, are inherently high-risk.
They also shared details about their investment governance framework, which includes:
- A multi-stage approval process
- Independent risk and transaction reviews
- Monthly Portfolio Management Committee meetings to assess risks, company updates, and post-investment reviews
Khazanah expressed gratitude to the PAC for recognizing its internal processes and commitment to high standards of governance.
Regarding FashionValet, Khazanah noted that the company’s strategy was affected by unexpected challenges, including:
- The COVID-19 pandemic
- Changes in consumer behavior
- Difficulties with its omnichannel retail approach
Despite these setbacks, Khazanah acknowledged the PAC’s assessment and agreed with the recommendation to improve public communication about its VC strategy and the risks involved.
They reaffirmed their commitment to supporting Malaysia’s startup and VC ecosystem, stating that while VC investments carry risk, they are crucial for driving innovation and long-term national competitiveness.
Khazanah also emphasized that the success of VC programs should be evaluated across the entire portfolio, not just individual investments.
They pledged to continue refining their processes and balancing financial discipline with nation-building goals, all while maintaining strong governance and accountability.
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