Anwar orders probe into Khazanah subsidiary Xeraya Capital over potential financial irregularities

Prime Minister Datuk Seri Anwar Ibrahim has ordered a thorough investigation into Xeraya Capital, a wholly owned subsidiary of Khazanah Nasional Bhd, to uncover any potential financial irregularities. The inquiry was prompted by concerns raised during a board meeting regarding the governance of the company, which was established in 2012.

Anwar, who serves as the chairman of Khazanah, made this announcement during his "Temu Anwar" session after inaugurating the 2026 International Himpunan Anak Muda Kebangsaan (Hamka) in Klang.

In a statement issued by Khazanah, Anwar stated that he had instructed the Khazanah management to conduct a forensic investigation using the highest standards of governance and due process. If necessary, external authorities may be brought in to assist with the investigation. During the board meeting, Khazanah highlighted legacy issues that required resolution, including those involving Xeraya Capital, which manages Khazanah's life sciences investments.

In July 2026, the Xeraya Board identified irregularities in documentation related to past transactions and decided to further review them. Anwar expressed satisfaction with the progress made by Khazanah and its management team, praising their proactive and meticulous approach to upholding high standards of governance. He emphasized that firm action against misconduct involving government-linked entities was necessary to ensure that any losses did not come at the expense of the people.

Anwar also addressed the recent developments concerning alleged mismanagement at the Federal Land Development Authority (Felda), particularly the sale of a hotel worth RM100 million at a price of RM160 million, which remains unresolved. He criticized certain politicians for intervening in Felda's management, highlighting the contrast between Felda's efficient management under previous chairmen, Taib Andak (1958-1971) and Raja Muhammad Alias (1979-2001), and its current challenges.

The Prime Minister vowed to continue his commitment to addressing any misconduct within his administration, expressing disgust with corruption.