KUALA LUMPUR: FashionValet Sdn Bhd was seen as a company with potential in the e-commerce space when Khazanah Nasional Bhd made its investment, says Finance Minister II Datuk Seri Amir Hamzah Azizan.
"The digital economy was an important core for Malaysia's development, right from the time of the Multimedia Super Corridor with emphasis on the development of the e-wallet and e-commerce sectors," he said during his winding-up speech on the Supply Bill 2025 in the Dewan Rakyat on Tuesday (Nov 12).
"Khazanah invested in FashionValet, which at the time was a fashion e-commerce platform with potential. Both Khazanah and Permodalan Nasional Bhd (PNB) were aware that investing in a start-up like that comes with high risk compared to normal investments," he said.
He said this was in line with the sovereign wealth fund and investment management company's mandate for strategic investments.
He said Khazanah should be given the room to complete its internal audit on the matter.
"its findings will be used to improve Khazanah's governance," he said.
Amir Hamzah said Khazanah has had successful investments, such as in dairy firm Farm Fresh.
Meanwhile, Datuk Mas Ermieyati Samsudin (PN-Masjid Tanah) asked if Khazanah had representatives in FashionValet's board.
The Public Accounts Committee chairman also informed the House that they would summon the company and Khazanah representatives in December.
Amir confirmed that Khazanah representatives are part of the FashionValet board due to the nature of its stake but PNB did not.
The MACC is also investigating the FashionValet case.
In a written Parliamentary reply last week, the Finance Ministry stated that Khazanah and PNB sold their shares in the e-commerce platform for RM3.1mil to NXBT Partners in 2023.
This contrasts with the RM47mil investment made by Khazanah and PNB in 2018, comprising RM27mil and RM20mil respectively.
FashionValet founders Datin Vivy Yusof and Fadzaruddin Shah Anuar have apologised for the losses and announced they would step down from their positions as chief executive officer and executive director respectively.
Vivy and Fadzaruddin are currently being questioned by the Malaysian Anti-Corruption Commission (MACC).
On Nov 6, MACC searched the house of Vivy and Fadzaruddin and froze several of their accounts with RM1.1mil in funds.
Among the items seized from the house were 11 handbags and a luxury watch, with a total worth of about RM200,000.
