KUALA LUMPUR (Nov 12): Finance Minister II Datuk Seri Amir Hamzah Azizan said on Tuesday that Khazanah Nasional Bhd and Permodalan Nasional Bhd (PNB) had invested in FashionValet because the e-commerce platform was seen as "a company with potential" at the time.

In his winding-up speech on Budget 2025 at the Dewan Rakyat, Amir said that the entry of both government-linked investment companies (GLICs) aligned with calls by the government then to support the development of e-wallets and e-commerce.

"Thus, Khazanah and PNB invested in FashionValet, which at the time, was a fashion e-commerce platform with potential," he said.

Both Khazanah and PNB were well aware of the high risks associated with start-up investments compared to traditional investments, acknowledged Amir, who stressed that this move aligned with the GLICs’ mandate to support strategic ventures.

He urged all parties to consider investment returns from a broader perspective, noting that it is crucial for GLICs to continue supporting the local ecosystem and venture capital investments in line with the Madani Economy framework.

As an example, Amir noted that Khazanah has made other early-stage investments yielding positive returns, such as its investment in local dairy company Farm Fresh Bhd (KL:FFB), which has generated a 13-fold return amounting to RM800 million.

The government remains committed to the responsible use of public funds, Amir said. Strong governance and oversight will continue, he added.

The minister also asked for the Malaysian Anti-Corruption Commission (MACC) and internal auditors to be given space to complete their investigations.

The final findings will be used to strengthen governance practices, he added.

Responding to a query from Datuk Mas Ermieyati Samsudin (Perikatan Nasional-Masjid Tanah), Amir confirmed that Khazanah had representatives on FashionValet's board due to its shareholding structure, whereas PNB did not have any board representation.

It was recently reported that Khazanah and PNB had invested in loss-making FashionValet in 2018 and incurred significant losses upon exiting as shareholders in 2023.

In a written parliamentary reply published on Oct 29, the Ministry of Finance disclosed that Khazanah invested RM27 million in FashionValet in 2018, while PNB invested RM20 million. Both companies exited in 2023, selling their combined stakes to NXBT Partners Sdn Bhd for just RM3.1 million.

The founding couple of FashionValet have since been summoned by the MACC for investigation, and several of their personal and company bank accounts, valued at approximately RM1.1 million, have been frozen.

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