Saying ‘stupidity is free’, Umno Youth chief scorches Tony Pua for defending Khazanah over FashionValet’s multi-million ringgit losses

Saying ‘stupidity is free’, Umno Youth chief scorches Tony Pua for defending Khazanah over FashionValet’s multi-million ringgit losses



FashionValet used to be a promising homegrown e-commerce fashion platform with more than 400 brands and 15,000 products on its platform. — Picture from Facebook/FashionValet

Wednesday, 06 Nov 2024 11:38 AM MYT


KUALA LUMPUR, Nov 6 — Umno Youth chief Dr Akmal Salleh today lashed out at DAP’s Tony Pua for playing down the RM43 million loss incurred by sovereign wealth fund Khazanah Nasional and the country’s largest asset management company Permodalan Nasional Berhad (PNB) over FashionValet, the fashion e-commerce company they had jointly owned.

Taking to Facebook this morning, Dr Akmal questioned the wisdom of placing public funds into a company that has consistently posted losses for the last five years.


“In business, profit and loss are normal.

“But what’s extraordinary is putting a large amount of public funds into a company that has posted losses for five consecutive years,” he said.


He said it was equally “extraordinary” that Pua would defend the company’s financial track record, given the long-standing pattern of losses.


Dr Akmal also pointed out the contradiction in Pua’s defence, suggesting that it was difficult for the average Malaysian to access financial support for business ventures.

“Does he not know that the people down here have trouble even getting a loan of 10k to start a business?” he asked, highlighting the disparity between ordinary citizens’ access to funds and the substantial government backing given to a company like FashionValet.

He added: “Never mind, stupidity is free—just keep on with that stupidity.”

Dr Akmal also took a jab at Pua’s past background as a former “political secretary” to a former finance minister involved in a “hidden tunnel”, without naming anyone.

The Umno politician’s remarks follows Pua’s rejection of calls for a Royal Commission of Inquiry (RCI) into the management of FashionValet, pointing out that the company’s setbacks were a normal part of doing business.

In his November 5 statement, Pua remarked that “some joker” had even suggested a royal inquiry into the matter, a claim Pua dismissed as excessive and unfounded.

Dr Akmad had proposed the RCI into FashionValet last Sunday.

FashionValet, which was established in 2010 and backed by Khazanah through its investment arm CIMB Group, has faced significant financial difficulties in recent years.

In its last five years, the company has consistently posted losses, with critics arguing that its business model and management have not shown the ability to deliver sustainable profits despite the backing of public funds.

Khazanah and PNB have since divested their stake for RM3.1 million.

Dr Akmal’s statements reflect growing concerns about the handling of public funds in private enterprises and the lack of accountability for state-backed businesses.

There has been increasing pressure on the government to explain why public resources are being invested in such ventures when many Malaysians are struggling to access financial support to grow their own businesses.

Last week, Prime Minister Datuk Seri Anwar Ibrahim ordered Khazanah to conduct an internal audit over its investment in FashionValet, which incurred a loss of over RM43 million that the Malaysian Anti-Corruption Commission is also investigating.