Malaysian Prime Minister Datuk Seri Anwar Ibrahim has moved to quell concerns regarding Retirement Fund Inc's (KWAP) investment in Indonesian aquaculture technology startup eFishery, framing the financial setback as a manageable risk within the fund's broader successful portfolio.
The Prime Minister highlighted that KWAP generated RM12.9 billion in profits, arguing that this substantial return puts the losses from the eFishery stake into perspective.
By emphasizing the fund's overall profitability, Anwar aims to reassure stakeholders and the public that the national retirement fund's venture capital strategy remains sound despite individual underperforming assets.
The defense comes as scrutiny intensifies on state-linked investments in high-growth but volatile technology sectors.
KWAP, which manages the retirement savings of Malaysian civil servants, has faced questions about its exposure to private equity and venture capital deals that carry higher risk profiles compared to traditional fixed-income instruments.
This intervention underscores the government's willingness to publicly support KWAP's investment decisions, even when they result in short-term losses.