Government spokesperson Fahmi Fadzil said today Khazanah Nasional Berhad and FashionValet should promptly address public concerns regarding their loss-making transaction.

Speaking to reporters at the Madani Deepavali Open House, the communications minister noted the high level of interest in the issue due to the use of public funds.

“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 today.

The Finance Ministry in a written parliamentary reply dated Oct 28 stated that Khazanah and PNB’s share value in FashionValet had dropped by almost RM44 million when the business was sold in 2023, compared to how much they spent in 2018.

It was also stated that Khazanah pumped in RM27 million and PNB RM20 million to acquire a minority stake in the local fashion brand in 2018 - as part of a gambit to boost bumiputera businesses in the e-commerce sector.

However, the ministry said FashionValet was subsequently hit with financial troubles during the Covid-19 pandemic, despite the same period being a major boon for many local e-commerce businesses.

“To be fair to all parties, including Khazanah and FashionValet, 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," Fahmi said today.

According to the Finance Ministry, a bumiputera company - NXBT Partners - had offered to buy out Khazanah and PNB’s stake in FashionValet and inject much-needed capital into the company by the end of 2023.

The two were paid RM3.1 million from the sale - which it described as a “responsible exit” from the business.

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