KUALA LUMPUR: Kuching member of Parliament Dr Kelvin Yii has raised concerns about questionable investment decisions and a lack of monitoring and accountability regarding the RM43.9 million loss incurred by Khazanah Nasional Bhd and Permodalan Nasional Bhd (PNB) in the e-commerce platform FashionValet (FV) Sdn Bhd.
During the debate on the 2025 Supply Bill in the Dewan Rakyat, Dr Yii said the matter was crucial not only due to the significant loss of public funds but also because it touched on the "elephant in the room" regarding governance and accountability in the management of government-linked companies (GLCs) and government-linked investment companies (GLICs).
He said that profit and loss should not be the sole criteria for evaluating investments.
Citing the example of Grab, which initially faced losses but ultimately succeeded due to its growth potential, he questioned how FV managed to secure such substantial funding from GLICs when other companies, like Grab, did not receive similar support.
"How was the RM40 million investment amount determined, and what was the process behind it?" he added.
Acknowledging that the investment aimed to empower Bumiputera businesses — a goal he fully supports, Dr Yii said that if funds were utilised effectively, they could benefit thousands of both Bumiputera and non-Bumiputera enterprises.
He said that many young startups felt compelled to seek funding abroad due to feeling undervalued in their own country.
"What selection process is in place to ensure that all Malaysians benefit from funding opportunities, rather than just those with connections to elite networks?" he queried.
He also highlighted the lack of monitoring and accountability surrounding the investment in FV.
"If I were investing a significant amount, I wouldn't let it sit and incur losses for years without oversight. What safeguards should be established to ensure effective management of profits and losses?"
Accountability was essential, Dr Yii said adding, "Heads must roll. There needs to be accountability in this matter. Shares were sold in 2023, yet no action has been taken. Investment companies like Temasek have faced losses, but someone took responsibility."
Meanwhile, as Dr Yii concluded his debate, Deputy Speaker Ramli Mohd Nor interjected; "Can I include my speech in your speech," to which he agreed.
"FV received an investment of more than RM40 million. Can we ask the minister through you (Dr Yii) if there was approval from the Finance Ministry for the GLCs and GLICs? As well as during the selling of the stake, did they obtain clearance from the Finance Ministry?
"This involves public money; over RM40 million was spent. I am sorry, but as a former investigator, it doesn't compute when it comes to governance," he said.