‘When you’re building a business or joining a company, you have to be transparent. You can’t have two sets of information for two sets of people.’
– American businessman and author, Howard Schultz
FashionValet, once celebrated as a trailblazer in Malaysia’s fashion and e-commerce industry, now finds itself at the centre of a high-profile scandal.
The brand, co-founded in 2013 by husband-and-wife team of Datuk Fadzaruddin Shah Anuar and Datin Vivy Yusof, initially made waves for championing local designers and offering curated selections of international brands.
However, as financial challenges and recent controversies have surfaced, the company’s reputation has quickly shifted from an entrepreneurial success story to a cautionary tale of transparency and accountability.
FashionValet’s financial struggles had long been apparent to industry insiders, with losses reported from as early as 2012.
Despite this, Khazanah Nasional Berhad and Permodalan Nasional Berhad (PNB) — two of Malaysia’s largest government-linked investment corporations — chose to back FashionValet in 2018, with Khazanah investing RM27 million and PNB contributing RM20 million.
They viewed the platform as a promising venture that could support Bumiputera entrepreneurs and elevate Malaysia’s presence in the digital retail sector.
Unfortunately, these investments did not turn the company’s finances around; FashionValet’s losses reportedly grew from RM166,793 in 2012 to RM20.19 million by 2018, and financial difficulties continued in subsequent years.
The breaking point came early this month, when it was revealed that a staggering RM43.9 million (about US$10 million) in public funds had been lost in investments tied to FashionValet.
The Malaysian Anti-Corruption Commission (MACC) launched an investigation, and on November 4, the MACC conducted simultaneous raids on FashionValet’s offices, as well as those of Khazanah, PNB, and the Ministry of Finance.
MACC Chief Commissioner Tan Sri Azam Baki confirmed that statements would be taken from Vivy and Fadzaruddin.
A video posted on MACC’s TikTok account documenting the raids has since gone viral, garnering over 373,000 views.
At the same time, Prime Minister Datuk Seri Anwar Ibrahim has ordered Khazanah to conduct an internal audit on its RM43.9 million investment loss in FashionValet, citing this case as part of a broader government initiative to ensure accountability across the nearly 2,000 government-linked companies (GLCs) in Malaysia.
Anwar’s response reflects a strong commitment to transparency, particularly in cases involving public funds, and sends a clear message that even prominent business figures are not immune to scrutiny.
In response to the backlash, Vivy and Fadzaruddin announced on October 31 that they would step down from FashionValet’s management team, acknowledging the company’s financial setbacks and attributing them to ambitious expansion plans that did not adapt well to market dynamics.
Through an Instagram post, they expressed regret over the impact on investors and took responsibility for the losses.
The couple also addressed criticisms of their public lifestyle, explaining that they had aimed to project confidence in FashionValet’s brand.
Public reactions have been swift and vocal, especially on social media, where concerns about transparency in business dealings involving state funds have become a common topic.
The founders’ explanations, however, have not fully assuaged the public.
Their claims of projecting confidence through a lavish lifestyle have drawn criticisms from many who feel that such displays were inappropriate, particularly as the company faced ongoing losses.
In my opinion, the FashionValet scandal reveals the growing tension between image and substance in today’s entrepreneurial landscape.
For a brand so closely tied to national pride and public investment, there’s a significant duty to uphold ethical standards, not only in terms of financial practices but also in terms of the values projected to the public.
It’s essential to recognise that accountability goes beyond profit margins; it is about honoring the trust of those who believe in the brand’s potential—especially when that trust comes from public funds.
The media’s role here is critical.
Beyond just reporting the facts, it serves as a reminder to evaluate the kinds of business stories we celebrate.
Are we upholding the right values when we idolise brands based solely on appearances or ambitious growth promises?
For me, the FashionValet scandal serves as a call to support businesses that combine innovation with integrity.
Success should be measured not just by financial growth but by the commitment to principles that benefit the wider community.
As the investigation progresses, Malaysians are watching closely to see how FashionValet and its founders will respond.
This case has become a lightning rod for a larger conversation on corporate accountability, particularly in sectors where public funds are at stake.
It highlights the importance of rigorous checks and balances and should inspire deeper scrutiny of how public investments are managed in the future.
While FashionValet’s early success inspired many, this scandal serves as a reminder that trust, once broken, is difficult to restore.
The views expressed here are those of the writer and do not necessarily represent the views of the Sarawak Tribune.
