Kuala lumpur: Khazanah Nasional Bhd has welcomed the findings and recommendations of the Public Accounts Committee (PAC) on its past investment in FashionValet and the broader approach to domestic venture capital (VC) investments, as part of its overall mandate and mission in advancing Malaysia.

According to BERNAMA News Agency, Khazanah had explained its domestic VC strategy in its sessions with the PAC, including the high-risk nature of investments such as FashionValet. The sovereign wealth fund provided a comprehensive overview of its overall investment governance framework, which includes a multi-stage approval approach as well as an independent risk and transaction review.

The PAC noted that FashionValet’s business strategy was impacted by unforeseen external shocks, particularly its omnichannel strategy, as well as by the COVID-19 pandemic and shifts in consumer behavior. Khazanah acknowledged the PAC’s assessment and lessons learned, including its recommendation to enhance public communication on Khazanah’s VC strategy, its high-risk nature, and its role in driving innovation.

Khazanah expressed appreciation to the members of the PAC for their acknowledgement and recognition of the rigorous internal processes, which ensure that its investment decisions are conducted in line with the highest standards of governance. The fund reiterated its commitment to supporting Malaysia’s entrepreneurial and VC ecosystem, emphasizing that VC investments, though inherently high-risk, are essential to driving innovation, nurturing startups, and ultimately strengthening the nation’s long-term competitiveness.

Khazanah also embraced the guidance from the PAC and welcomed the opportunity to continuously refine and enhance its processes. Among other measures, Khazanah holds a monthly Portfolio Management Committee (PMC) meeting to review issues such as risk management, portfolio company updates, and post-mortem reviews of all investments, in addition to regular Investment Committee (IC) meetings.

The fund reaffirmed its aim to balance financial discipline with nation-building objectives, guided by strong governance and clear accountability. This approach is intended to ensure sustainable long-term value creation while positively contributing to Malaysia’s socio-economic development. In 2018, Khazanah invested RM27 million in minority stakes in FashionValet.