KUALA LUMPUR — Malaysian Prime Minister Anwar Ibrahim has ordered a comprehensive forensic investigation into Xeraya Capital Sdn Bhd, a wholly owned subsidiary of sovereign wealth fund Khazanah Nasional Bhd, after concerns were raised over governance and documentation involving past transactions.
Anwar, who also serves as chairman of Khazanah, announced the investigation after a Khazanah board meeting on Thursday, Aug. 20. The move comes after Xeraya’s board identified irregularities in documentation connected to earlier transactions and determined that the matters required further review.
The prime minister said Khazanah management had been instructed to conduct the investigation according to the highest standards of governance and due process, with external authorities to be involved where necessary.
What exactly is being investigated?
Authorities have not publicly disclosed the specific transactions, individuals or amounts involved.
That distinction is important: the investigation was triggered by governance concerns and irregularities in documentation, but current reports do not establish that criminal wrongdoing occurred.
According to reports from CNA, Reuters, The Edge Malaysia and other Malaysian outlets, Xeraya’s board had flagged the issues as part of a review of what Khazanah described as legacy matters requiring resolution. The board’s concerns reportedly surfaced in July, before the decision to initiate a broader forensic investigation.
Xeraya has said it takes the concerns seriously and has already begun proactive measures to review the matters raised and strengthen its oversight processes.
Why Xeraya matters
Xeraya may not be as well known to the public as Khazanah’s larger portfolio companies, but it plays a specialized role in Malaysia’s investment strategy.
Established in 2012, Xeraya was created as an investment vehicle focused on life sciences, including biotechnology, medical technology, pharmaceutical development, agritech and biorenewables. Its investments have included international companies and funds in the healthcare and biotechnology sectors.
Xeraya’s own portfolio information shows investments across medical technologies, pharmaceutical biotechnology and biorenewables/agritech.
The company has also remained active in international investments. In 2025, for example, Xeraya participated in a US$50 million Series C funding round for UK-based digital health company Congenica, according to The Edge.
A bigger governance test for Khazanah
The investigation puts renewed attention on governance at one of Malaysia’s most important state investment institutions.
Khazanah is the Malaysian government’s sovereign wealth fund and is ultimately owned by the Minister of Finance Incorporated. Its portfolio spans major strategic areas of the Malaysian economy, while its investment mandate also includes generating long-term returns and supporting national economic priorities.
The probe therefore carries significance beyond Xeraya itself: any findings could potentially affect how Khazanah reviews historical investments, strengthens internal controls and oversees its subsidiaries.
Anwar has stressed that the investigation must follow due process, with the possibility of involving external authorities if warranted.
No conclusion yet
For now, there is no publicly established finding of financial misconduct or criminal activity at Xeraya.
The forensic investigation is intended to determine what happened, whether governance procedures were breached and whether further action is necessary.
That means the most significant details—including which transactions are under scrutiny, whether money was lost and whether any individuals could face consequences—remain unanswered.
And that is the question now hanging over Khazanah: what will the forensic investigation uncover when investigators go back through Xeraya’s past transactions?
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