KUALA LUMPUR: Khazanah Nasional Bhd has reiterated its commitment to supporting Malaysia’s entrepreneurial and venture capital (VC) ecosystem while acknowledging the Public Accounts Committee’s (PAC) findings on its past investment in FashionValet.

The sovereign wealth fund, in a statement, said VC investments, though inherently high-risk, are essential to driving innovation, nurturing start-ups and strengthening the country’s long-term competitiveness.

It added that the success of such investments should be assessed on a portfolio basis rather than individually.

Khazanah said it welcomed the PAC’s recognition of its internal governance framework, which includes multi-stage approvals, independent risk reviews and regular oversight by its Portfolio Management Committee and Investment Committee.

“Khazanah would like to record our appreciation to the members of the PAC for their acknowledgment and recognition of our rigorous internal processes, which ensure that our investment decisions are conducted in line with the highest standards of governance.

“As mentioned by the PAC, 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 behaviour,” it said.

Khazanah also said it would take into account the PAC’s recommendation to enhance communication of its VC strategy, its high-risk nature, and its role in driving innovation.

“Khazanah shall strive to balance financial discipline with nation-building objectives, guided by strong governance and clear accountability.

“This will ensure sustainable long-term value creation, while positively contributing to Malaysia’s socio-economic development,” it said.