Malaysia PM orders probe into unit of sovereign wealth fund

Malaysia's Prime Minister Anwar Ibrahim has directed an investigation into Xeraya Capital, a subsidiary of the nation's sovereign wealth fund Khazanah Nasional, following the identification of governance irregularities by the company's board. The inquiry into Xeraya Capital, which manages Khazanah's life sciences investments, was announced at a Khazanah Board meeting on Thursday, August 20, as reported by Anwar during a Facebook livestream.

As the chairman of Khazanah, Anwar stated that the board had mandated a thorough investigation into potential governance breaches, specifically focusing on issues arising from previous transactions. According to state news agency Bernama, Khazanah had raised concerns over legacy issues involving Xeraya during the fund's third board meeting in 2026.

In July, Xeraya's board had detected irregularities in documentation related to past transactions that necessitated further scrutiny. In response to this disclosure, Anwar instructed Khazanah management to conduct a forensic investigation adhering to the highest standards of governance and due process, and to engage external authorities if needed.

Khazanah, a state-owned investment vehicle overseen by Malaysia's finance ministry, engages in investments across various sectors such as energy, healthcare, information technology, and real estate.