KUALA LUMPUR: Khazanah Nasional Bhd will continue investing in start-ups, despite losses from its stake in online fashion retailer FashionValet Sdn Bhd, said Finance Minister II Datuk Seri Amir Hamzah Azizan.
He explained that the core vision of such investments remains unchanged, as venture capital in start-ups is integral to supporting the ecosystem and enhancing control mechanisms.
In addition, the minister highlighted that such investments help create job opportunities, stimulate the economy, and introduce advanced foreign technologies to Malaysia.
"The issue with FashionValet will not impact Khazanah's broader efforts to invest in start-ups.
"The vision remains aligned with Khazanah's mandate, and the company will continue supporting the start-up ecosystem and venture capital, while improving control mechanisms," he said.
His remarks came in response to a supplementary question from Syerleena Abdul Rashid (PH-Bukit Bendera) on whether Khazanah adopts a different approach to venture capital investments.
He further added that the objective of venture capital investments is growth, acknowledging the inherent risks but also the significant potential for high returns if successful.
"Aware of the risks and rewards associated with venture capital and private equity, both Khazanah and Permodalan Nasional Bhd agree that investments should be managed by evaluating the overall performance of the portfolio, rather than focusing solely on individual investments," he added.
In 2018, Khazanah and PNB invested RM27 million and RM20 million, respectively, for minority stakes in FashionValet.
The Ministry of Finance, in a written reply on Oct 28, stated that the two companies received RM3.1 million from the sale of their shares in FashionValet. - Bernama
