Qualampur: Khazana Nasil BHD has welcomed the findings and recommendations of the previous investment of its (Khazanah) in the Fashionwell and a comprehensive approach (VC) investment (treasury) conclusions and recommendations, which are as part of their overall mandate and mission in advancing Malaysia.
Khazana explained his domestic VC strategy in his sessions with PAC, including high risk nature of investment such as fashionwells.
“In addition, we provided a comprehensive observation of our overall investment governance structure, including a multi-step approval approach as well as an independent risk and review of transactions,” it is said in a statement today.
“As mentioned by PAC, the fashionwell’s commercial strategy was influenced by the unpredictable external shocks, especially its omnipresent strategy, as well as a change in Kovid -19 epidemic and consumer behavior. Still, we accept the evaluation and lesson of the PAC, the recommendation to increase its recommendation on the VC strategy of Khazan.
This recorded the members of the PAC for their acceptance and recognition of rigorous internal processes, which ensure that the investment decisions of the treasury are in line with the highest standards of governance.
Sovereign Wealth Fund said it is committed to supporting Malaysia entrepreneur and VC ecosystem. “VC investment, although naturally high-risk, is required to run innovation, nurture innovation, and eventually to strengthen the country’s long-term competition. Given the risk of VC investments, the success of a given VC investment program requires a portfolio approach to evaluate the success of a given VC investment program,” it said.
Regarding internal processes, Khazan appreciated the guidance from the PAC and welcomed the opportunity “to continuously refine and enhance our procedures.”
“Among other people, Khazanah holds a monthly portfolio management committee meeting (PMC) meeting, which reviews the issues, but at the top of our regular investment committee (IC) meetings, the risk management, portfolio company updates and are not limited to post mortem reviews of all our investments,” said this.
Khazana reiterated that he would try to balance financial discipline with the objectives of nation-building, directed by strong governance and clear accountability. “This permanent long-term value will ensure creation, while Malaysia’s positive contribution to the socio-economic development,” it said.
In 2018, Khazana invested RM27 million at a minority stakes at Fashionwell. – Bernma
