by NURUL NAJMIN ABU BAKAR

THE Ministry of Finance (MOF) said Khazanah Nasional Berhad will not stop the effort to support and help start-ups and the venture capital (VC) ecosystem despite controversy over the Fashion Valet (FV) Sdn Bhd investment.

Its Minister Datuk Seri Amir Hamzah bin Azizan said the sovereign wealth fund will improve control mechanisms and acknowledge that several VC investments made by them are successful.

He gave an example of Khazanah’s investment in a local dairy company, Farm Fresh Bhd, which has delivered a return exceeding 13 times its initial value, amounting to over RM800 million.

“This FV issue will not affect Khazanah’s wishes to continue investing in startups.

“VC remains within Khazanah’s mandate and Khazanah will continue efforts to support the start-up and venture capital ecosystem while improving control mechanisms.

“Khazanah has provided a special fund through the Impact Fund with the purpose of investing to increase economic competitiveness and build the country’s resilience, while producing benefits and socioeconomic impact for the people, especially for start-up companies and venture capital,” he told the Dewan Rakyat during Question Time today.

Amir Hamzah was responding to an additional question from Syerleena Abdul Rashid (PH-Bukit Bendera), who inquired if Khazanah will stop investing in startups or adopt a new strategy following the Fashion Valet situation, and whether this will affect its interest in venture capital investments.

Khazanah and another govt investment company – Permodalan Nasional Berhad (PNB) invested RM27 million and RM20 million, respectively, into FV in 2018.

In 2023, both sold their share to a Bumiputera company, NXBT Partners for RM3.1 million.

MOF said the sale represents a responsible exit for Khazanah and PNB from FV to a strategic investor who could continue to assist Fashion Valet in addressing its financing needs holistically and reviving its business in a challenging industry environment.