KUALA LUMPUR: Khazanah Nasional Bhd has a representative on the board of FashionValet Sdn Bhd due to its holding exceeding the threshold that requires board representation, said Datuk Seri Dr Amir Hamzah Azizan.
The Finance Minister II added that, on the other hand, Permodalan Nasional Bhd does not have a representative on the board.
He was responding to a question from Datuk Mas Ermieyati Samsudin (PN-Masjid Tanah) during the winding-up of the 2025 Budget debate in the Dewan Rakyat.
Amir said FashionValet managed to secure investment from Khazanah as it was at the time a promising e-commerce platform.
"The digital economy has long been a cornerstone of Malaysia's development, starting with the establishment of the Multimedia Super Corridor.
"This sector includes sub-sectors like e-commerce, digital wallets, and various digital platforms.
"In line with the government's priority on technology sectors, Khazanah invested in FashionValet, which at the time was a promising e-commerce platform for fashion.
"Both Khazanah and PNB understand that startup investments inherently carry higher risks than typical investments but align with their mandate to support strategic ventures," he said.
He assured that the government remains diligent in the use of public funds and will continue to enforce strong governance and oversight.
"Given that MACC is still investigating this case and Khazanah's internal audit is ongoing, Khazanah should be given space to complete these processes.
"The final findings will be used to improve Khazanah's governance practices," he said.
Amir said it is also important for Khazanah to continue supporting the local ecosystem and venture capital investments in line with the Madani Economy framework.
He said Khazanah has made other significant investments which recorded a significant amount of profit.
"It's also essential to consider investment returns from a broader perspective.
"Khazanah has made other early-stage investments that are yielding positive returns, such as its investment in local dairy company Farm Fresh Bhd, part of Khazanah's venture capital in the agriculture sector.
"Through the Farm Fresh investment, Khazanah has achieved a 13-fold return amounting to RM800 million," he said.
Last year, Khazanah and PNB sold their stakes in FashionValet for RM3.1 million, following a combined investment of RM47 million made in 2018.
The Finance Ministry confirmed the sale in a written reply to Parliament on Oct 29, in response to a question from Yeo Bee Yin (PH-Puchong) regarding Khazanah and PNB's total investment in FashionValet, including losses due to devaluation and share disposal.