Fahmi urges Khazanah to explain RM43.9mil losses after selling FashionValet stakes

KUALA LUMPUR: Khazanah Nasional Berhad and Fashion Valet should promptly address public concerns regarding their recent transaction, says Communications Minister Fahmi Fadzil.

Describing the issue as significant and of public interest, Fahmi said the public should be given an explanation soon.

“We are monitoring the issue closely. Although I haven’t yet received a full report on the specifics, many questions are circulating, and people are seeking clarity,” he said when met at the Madani Deepavali Open House on Thursday (Oct 31).

He said the issue surfaced following a written Parliamentary reply published recently, highlighting that it involves public funds.

In recent days, the matter has sparked significant social media attention.

“To be fair to all parties, including Khazanah and Fashion Valet, we should allow them a little time to provide an official response. However, given the level of public interest, they should issue a statement soon,” said Fahmi.

On Tuesday (Oct 29), the Finance Ministry said that Khazanah Nasional Bhd and Permodalan Nasional Bhd (PNB) have sold their collective stakes in Malaysia’s first fashion e-commerce platform, Fashion Valet Sdn Bhd (FashionValet), for RM3.1mil.

This sale marks a significant loss compared to their initial RM47mil investment.

In a written parliamentary reply, the Finance Ministry revealed that Khazanah had invested RM27mil and PNB RM20mil in 2018 to acquire minority stakes in FashionValet.

Also read: Khazanah, PNB secure RM3.1mil from FashionValet share sale

According to the Finance Ministry, in late 2023, a Bumiputera firm, NXBT Partners, offered to acquire Khazanah and PNB’s stakes and inject the necessary capital into the company.

Despite the RM3.1mil sale, the Finance Ministry described the losses as “minimal” in comparison to the overall earnings of Khazanah and PNB for the year.

It was previously reported that Khazanah had said that it regularly invests and divests assets based on its portfolio allocation strategy and investment horizon.

However, Khazanah did not share with the online portal if it had disposed of its stake in FashionValet or the percentage it had paid RM27mil for.