Wrath of Malaysians over Khazanah, PNB’s RM43.9m loss

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Wrath of Malaysians over Khazanah, PNB’s RM43.9m loss

KUALA LUMPUR, Oct 11, 2024: While the so-called Madani Unity Government (UG) has asked the two state-linked firms to explain their US$10.1 million (RM43.9 million) loss investing in a fashion e-commerce platform, Malaysians are hitting out at Fashion Valet founder’s low-lying hubby, as backlash against the couple intensifies.

And, the Malaysian Anti-Corruption Commission (MACC) is also probing Sovereign Wealth Fund (SWF) Khazanah Nasional Berhad and Permodalan Nasional Berhad (PNB) for the loss of public funds.

No News Is Bad News produces below two news reports on the loss:

 

2 state-linked firms must explain US$10.1 million loss investing in fashion e-commerce platform: Malaysia minister

Government-linked firms Khazanah Nasional and Permodalan Nasional Berhad sold their minority investments in FashionValet at the end of 2023 for only RM3.1 million, marking a significant loss from initial RM47 million investments in 2018.

A file photo of Malaysia's Communications Minister Fahmi Fadzil. (File Photo: Facebook/Fahmi Fadzil)

01 Nov 2024 02:58PM

KUALA LUMPUR: Two Malaysian government-linked firms - including its sovereign wealth fund - have been urged to address public concerns over their recent loss-making investments in FashionValet, which is the country’s first fashion e-commerce platform.

Khazanah Nasional and Permodalan Nasional Berhad (PNB) - an investment management firm - came under the spotlight after Malaysia’s finance ministry earlier this week said in a written parliamentary reply that both companies had recorded a loss of RM43.9 million (US$10.1 million) from the sale of their minority investments in the e-commerce platform. 

The two sold their collective stakes in FashionValet at the end of 2023 for RM3.1 million. This marks a significant loss - or about 93.4 per cent - from the initial RM47 million investments made in 2018, local media reported. 

On Thursday (Oct 31), Malaysia’s Communications Minister Fahmi Fadzil told local media that both Khazanah and PNB should explain the losses because it involves public money. 

“Since public money is involved, naturally people are asking questions. We are also starting to see content revealing what may have been going on … in the public interest, I believe they should issue a statement,” Mr Fahmi said. 

However, Mr Fahmi - who is also the Unity Government spokesman - added that the two firms should be given some time to issue a formal response. 

In 2018, Khazanah invested RM27 million while PNB invested RM20 million in FashionValet, owned by renowned fashion entrepreneur Vivy Yusof and her husband Fadzarudin Shah Anuar. 

"The total loss from the sale of FashionValet shares is negligible compared to Khazanah’s and PNB’s overall income for the relevant year," the finance ministry said in its written reply on Oct 28. 

Following reports that FashionValet had been sold in what was described as a “fire sale” to another local investment firm NXBT Partners, the finance ministry had defended Khazanah's initial investment into the company.

The ministry said earlier in September that the investment was in line with the sovereign wealth fund’s mandate at the time to promote local tech entrepreneurs and enable them to gain exposure in the growing e-commerce sector.

"At the same time, PNB’s investment thesis was focused on supporting fast-growing Bumiputera digital retail companies to develop into a regional retail platform for Malaysian brands." it added.

The finance ministry also said that the COVID-19 pandemic severely affected FashionValet’s business, and that the sale to NXBT Partners was a responsible exit for Khazanah and PNB.

An influencer and modest fashion icon with over 1.8 million followers, co-owner of FashionValet Ms Vivy Yusof is also known for her luxurious lifestyle. (File Photo: CNA/Aik Chen)

In 2022, amid rising competition and other business challenges, Ms Vivy and her husband shut down FashionValet’s e-commerce platform, pivoting instead to focus on their own in-house modest brands, Duck and Lilit. 

Ms Vivy is currently the creative director, while her husband Mr Fadza holds the position of chief executive officer. 

According to The Edge Malaysia, FashionValet has been recording losses for the past three consecutive years. In the financial year which ended on Dec 31, 2022, FashionValet incurred a loss-after-tax of RM34.51 million, which is three times the RM9.63 million loss recorded in 2021.

“There is too much that I want to share but for now, I will allow people to say what they want to say,” Ms Vivy posted on her social media on Oct 30, adding that she will issue a statement “soon”.

This is after netizens took to social media, questioning how the large amount of money invested was managed by her multi-million dollar e-commerce company. 

“This is where our money went … one business took all RM43 million funds and lived a super rich lifestyle,” said an X user @annunxia on Oct 29. 

“How can both PNB and Khazanah continue to invest (in FashionValet) although the company is continually recording losses? Who decided on the deal?” said another X user @Alturkistiano. 

An influencer and modest fashion icon with over 1.8 million followers, Ms Vivy is known for her luxurious lifestyle.

Malaysians hit out at FashionValet founder’s low-lying hubby as backlash against couple intensifies

By FocusM

 

Editor’s Note: Late yesterday (Nov 1) evening, Khazanah Nasional Bhd clarified its divestment in loss making FashionValet Sdn Bhd, contending that its decision to invest RM27 mil to acquire a 9% stake in the company in 2018 was anchored on the theme of offline-to-online e-commerce as well as a commitment to support Malaysian entrepreneurs and promising early-stage companies.

 

Back then, FashionValet was a promising home-grown e-commerce fashion platform with more than 400 brands and 15,000 products on its platform and expecting revenue growth of ~60% annually.

“We believe that the start-up ecosystem is a vital engine for innovation, economic growth and job creation in Malaysia,” justified the sovereign wealth fund.

“Despite the higher inherent investment risks and challenges with early-stage companies, Khazanah is fully dedicated to supporting local start-ups and will continue to promote their success and expansion.” 

HAVING made her the most despicable woman overnight for burning RM43.9 mil of taxpayers’ money via investment losses incurred by Khazanah Nasional Bhd and Permodalan Nasional Bhd (PNB), Malaysians are now training their guns on the husband of entrepreneur, influencer and founder of FashionValet Sdn Bhd (FV) Datin Vivy Sofina Yusof.

 

As the trolling on Vivy has yet to subside in the court of public opinion, netizens have seemingly begun to switch their attention to the 36-year-old Datuk Fadzarudin Shah Anuar whom they deemed as “the brain” behind the demise of the early e-commerce pioneer and Malaysian start-up poster-child.

“(Am) not a Vivy fan at all but people tend to give her husband; the actual CEO of this cursed company this whole time a pass,” lambasted Friend of Free Palestine(@friendsofadik) on the X platform.

So as the wife is left to front the entire ordeal on her own as “the face” of FV, the husband whom netizens believed “was calling the shots behind the curtain” has his reputation remained unscathed. Here’s a sample of what netizens think of Vivy’s hubby:

 

Not enough with debating who should be faulted in the business disaster, the trolling episode got extended to include parents and family members of the couple.

“Are you sure he’s (Fadzarudin) the one behind all this? How about Vivy’s dad? The couple is a nobody without Vivy’s dad running behind them and lobbying stuffs for them,” argued one commenter.

 

Aside from her own father, even Vivy’s father-in-law is unable to escape the radar of netizens who are profusely conducting a post-mortem on the ill-fated FV business – pending if the Malaysian Anti-Corruption Commission (MACC) sees it as valid to intervene.

This came about in a viral tweet by FWB et cætera (@BMVFM) who posed the question “is Fadzarudin’s father Datuk Seri Anuar Abd Aziz a scammer”, thus prompting the son to work behind the scene to avoid adverse publicity.

 

This was when a commenter revealed that Vivy’s sister Intan Safina Yusof was hauled to the Kuala Lumpur Sessions Court on July 23, 2020 over criminal breach of trust (CBT) involving RM200,000.

According to the charge sheet, Intan as one of the directors of Arena Abadi Sdn Bhd, had committed CBT by transferring the RM200,000 entrusted to her from the company’s account into her personal account.

 

This is despite an both Vivy and her husband having issued a statement that they would take “full responsibility for failure of the investment”.

“As the two people who were responsible for managing the company, the buck stops with us – and the fact is that we failed our investors,” the statement read. “We’re disappointed in ourselves and regretful that tit has come to this. We’re truly sorry.”

 

Well, another netizen hafiz #FreePalestine (@cygaraga) further exposed that a simple Google search about “Tn Hj Anuar GPLF” would answer questions surrounding the background of Fadzarudin’s father.

“Apple doesn’t fall far from the tree, does it?” asked the netizen. – Nov 2, 2024