Malaysia's KWAP Loses RM200 million in eFishery fraud

The Retirement Fund Inc (KWAP), Malaysia's public pension fund, invested about RM200 million (US$47.7 million) in the Indonesian aquaculture start‑up eFishery in July 2023. Finance Minister Anwar Ibrahim later said the investment was a deliberate fraud after eFishery’s management manipulated its financial statements, despite KWAP’s standard due‑diligence and audit checks.

Anwar told Parliament that the decision was based on information available at the time, including verification by internationally accredited auditors, and that a consortium of investors – including Singapore’s Temasek, Japan’s SoftBank, Northstar Group and 42XFund – also suffered losses. The Prime Minister, also Finance Minister, reiterated that the investment process followed strict governance procedures.

Parliamentary committees are now seeking a full report on the approval, risk‑assessment and oversight of the investment. The Public Accounts Committee (PAC) said it will consider whether to open formal proceedings. KWAP has launched legal actions to recover the funds and is reviewing its investment governance framework to prevent future incidents.