KUALA LUMPUR: Two government-linked Malaysian firms – together with the sovereign wealth fund – have been urged to deal with public considerations over their latest loss-making investments in FashionValet, which is the nation’s first style e-commerce platform.
Khazanah Nasional and Permodalan Nasional Berhad (PNB), an funding administration agency, got here into the highlight after Malaysia’s finance ministry earlier this week stated in a written parliamentary response that each firms had recorded a lack of RM43.9 million (US$10.1 million) from the sale of its minority stakes within the e-commerce platform.
The two bought their joint holdings in FashionValet on the finish of 2023 for RM3.1 million. This marks a big loss – amounting to about 93.4% – in comparison with the preliminary investments of RM47 million made in 2018, native media reported.
Malaysian Communications Minister Fahmi Fadzil informed native media on Thursday (31 October) that each Khazanah and PNB ought to clarify the losses as a result of it entails public cash.
“Since we’re speaking about public cash, it is pure for folks to ask questions. We are additionally beginning to see content material that reveals what could have occurred… within the public curiosity, I feel they need to make an announcement,” Fahmi stated.
However, Fahmi, who can be the spokesperson for the unity authorities, added that the 2 firms must be given time to offer a proper response.
In 2018, Khazanah invested RM27 million whereas PNB invested RM20 million in FashionValet, owned by famous fashion entrepreneur Vivy Yusof and her husband Fadzarudin Shah Anuar.
“The whole loss from the sale of FashionValet shares is negligible in comparison with the general revenue of Khazanah and PNB for the related yr,” the Finance Ministry stated in its written response on October 28.
Following stories that FashionValet had been bought in what was described as a “fireplace sale” to a different native funding agency NXBT Partners, the finance ministry had defended Khazanah’s preliminary funding within the firm.
The ministry had stated in early September that the funding was according to the sovereign wealth fund’s mandate to advertise native tech entrepreneurs and allow them to achieve publicity to the rising e-commerce sector.
“At the identical time, PNB’s funding thesis was targeted on supporting fast-growing Bumiputera digital retail firms to remodel them right into a regional retail platform for Malaysian manufacturers.” he added.
The finance ministry additionally stated that the COVID-19 pandemic had severely affected FashionValet’s enterprise and that the sale to NXBT Partners was a accountable exit for Khazanah and PNB.
