Malaysia’s public sector pension fund, the Retirement Fund (Incorporated) or KWAP, has confirmed it suffered financial losses after investing nearly RM200 million in the Indonesian aquaculture startup eFishery. Prime Minister Anwar Ibrahim disclosed in a written parliamentary reply that the investment, made in July 2023, was the result of a deliberate and well-planned fraud. The startup’s management allegedly manipulated financial statements to deceive investors, including KWAP and other international institutional partners.
The investment was part of a broader funding round that included reputable global investors such as Temasek, SoftBank, 42XFund, and Northstar. According to the Ministry of Finance, KWAP’s decision to invest followed a rigorous governance process. This included internal assessments, independent due diligence, and the verification of financial reports by certified international auditors. Despite these safeguards, the sophisticated nature of the manipulation allowed the startup to mislead its backers.
In response to the discovery, the consortium of investors has taken decisive action. This includes lodging official reports with relevant authorities, initiating legal proceedings to recover the funds, and conducting a comprehensive internal review of investment protocols. KWAP has also presented its findings to its board to ensure accountability and has moved to strengthen its internal controls to better protect the retirement savings of civil servants.
While the loss is significant, the government maintains that KWAP’s investment framework remains robust. The focus for the fund now shifts toward the ongoing recovery efforts and the implementation of tighter monitoring processes. The Public Accounts Committee is currently considering whether to conduct its own formal proceedings to further investigate the circumstances surrounding the failed investment.