Malaysia has launched an investigation into its public sector pension fund's investment in Indonesian aquaculture technology startup eFishery after the company's fraud case attracted cross-border attention (20/07).

The investigation involves Retirement Fund (Incorporated), or Kumpulan Wang Persaraan (KWAP), which invested pension funds in the startup.

The investigation follows the conviction of eFishery founder and former Chief Executive Officer Gibran Huzaifah in Indonesia for embezzlement and money laundering.

Malaysia Orders Full Investigation Into KWAP's Investment

During a Dewan Negara session on Monday (20/07), Malaysian Prime Minister and Finance Minister Anwar Ibrahim said the preliminary report had not found indications of corruption or fraud within KWAP.

However, he said the entire investment process must still be investigated by the Malaysian Anti-Corruption Commission (MACC).

Anwar said he had met with KWAP's management and instructed them to provide full cooperation throughout the investigation.

"I have met with the management of KWAP to emphasize that they must provide full cooperation. Even based on the preliminary report, I do not believe there are such elements. However, I want to stress that we must not compromise on fraud or corruption."

He added that MACC should examine how the investment process was carried out, including decisions made by the investment panel and approved by the board of directors.

The statement was made in response to questions from Malaysian senators regarding the government's strategy to protect national pension funds while maintaining investment returns.

MACC Forms Special Team as KWAP Seeks Investment Recovery

MACC announced on Saturday (18/07) that it had established a special investigation team to examine KWAP's investment losses in eFishery. The team was formed on Friday (17/07) to conduct a comprehensive review.

MACC Chief Commissioner Abdul Halim Aman said the investigation would be carried out fairly, transparently, and impartially under the law.

He also asked the public not to speculate about the investigation to avoid confusion and protect the integrity of the process.

KWAP confirmed that it invested 163.4 million Malaysian ringgit in eFishery, equal to around Rp717.65 billion. The investment represented a 2.51 percent ownership stake in the company.

KWAP said it was only a minority shareholder. Most of eFishery's shares were owned by other investors, including several global institutional investors that were also affected by the alleged misconduct.

The pension fund said it continues to pursue every available option to maximize the recovery of its investment.

KWAP Reviews Investment Process Following Financial Manipulation Case

KWAP said the eFishery case involved deliberate financial manipulation and misrepresentation of the company's financial statements.

The institution stated that Gibran Huzaifah was sentenced to nine years in prison by the Bandung District Court on 29 April 2026 after being found guilty of embezzlement and money laundering.

After discovering the irregularities, KWAP conducted an internal review of its investment process.

The review covered investment procedures, post-investment monitoring systems, and information available during its period of share ownership.

KWAP also said it had taken follow-up actions under its internal governance and accountability framework while continuing efforts to recover the investment.

The institution stated that it had strengthened its private market investment strategy by improving portfolio diversification, investing with experienced investment managers and strategic partners, strengthening post-investment monitoring, and increasing oversight of material developments in portfolio companies.

Although the investment was worth hundreds of billions of rupiah, KWAP said its exposure to eFishery represented only a small portion of its overall portfolio.

Based on its unaudited financial results as of 31 December 2025, KWAP recorded gross investment income of 8.33 billion Malaysian ringgit and managed total assets of 195.26 billion Malaysian ringgit.

eFishery Case Affects Global Investors

According to the source article, the eFishery case began after an internal investigation by the company's board found alleged inflation of revenue and profit over several years.

Bloomberg, as cited by The Business Times, reported that the startup recorded losses totaling hundreds of millions of US dollars between 2018 and 2024.

The case later developed into an alleged fraud worth around US$300 million, leading to the collapse of one of Southeast Asia's best-known startups.

In a written parliamentary reply dated 15 July 2026, Malaysia's Ministry of Finance stated that KWAP was a victim of an orchestrated fraud involving eFishery.

KWAP said other major shareholders, including international institutional investors, were also affected.

The source article stated that eFishery had previously received funding from Temasek Holdings, SoftBank Group, and 42XFund.

PHOTO: EFISHERY

This article was created with AI assistance.

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