Malaysia PM Orders Probe Into Sovereign Wealth Fund Unit Over Governance Issues

Malaysia's Prime Minister Anwar Ibrahim has ordered a thorough investigation into Xeraya Capital, a subsidiary of the state-owned sovereign wealth fund Khazanah Nasional. The directive comes after Xeraya's board identified governance irregularities connected to past transactions.

Anwar, who also chairs Khazanah, announced the decision during a Facebook livestream on Thursday, August 20, 2026. He stated that the Khazanah Board had mandated a comprehensive probe into potential breaches of governance. The investigation will adhere to the highest standards of governance and due process, with external authorities to be involved if necessary.

Xeraya Capital is responsible for managing Khazanah's investments within the life sciences sector. State news agency Bernama reported that Khazanah's board flagged legacy issues concerning Xeraya during the fund's third board meeting of 2026, necessitating a resolution. The irregularities in documentation related to past transactions were identified by Xeraya's board in July, prompting the need for further review.

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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.