Malaysia PM orders probe into unit of sovereign wealth fund

KUALA LUMPUR: Malaysia's Prime Minister Anwar Ibrahim on Thursday (Aug 20) ordered an investigation into a subsidiary of sovereign wealth fund Khazanah Nasional after its board identified governance irregularities linked to past transactions.

The probe into Xeraya Capital, which manages Khazanah's life sciences investments, was decided at a Khazanah Board meeting on Thursday, Anwar said during a livestream on Facebook.

Anwar, who also chairs Khazanah, said the board had ordered a comprehensive investigation into potential governance breaches, including issues stemming from past transactions.

State news agency Bernama reported that Khazanah raised legacy issues involving Xeraya that required resolution during the fund's third board meeting of 2026.

Xeraya's board in July identified irregularities in documentation relating to past transactions that warranted further review, Bernama reported.

"Upon the Board being made aware, I instructed the Khazanah management to initiate a forensic investigation to the highest standards of governance and due process and, where necessary, to bring in external authorities," Anwar was quoted as saying by Bernama.

Khazanah, owned by Malaysia's finance ministry, invests in sectors including energy, healthcare, information technology and real estate.