Malaysian celebrity couple deny embezzlement over failed Fashion Valet venture

The charges follow an investigation into a US$10 million loss incurred by Malaysian sovereign wealth funds Khazanah Nasional Berhad and Permodalan Nasional Berhad (PNB) in their investment in Fashion Valet, a business operated by Vivy and Fadzarudin.

Initially popular with the public, the business aimed to build an online sales platform to take the country’s fashion retailers global, similar to China’s Shein or Temu. But it collapsed in 2022 after struggling through the Covid-19 pandemic, leading Khazanah Nasional and PNB to sell their stakes for just 3.1 million ringgit (US$710,000).

As outcry crescendoed after the state’s losses emerged, the founders apologised on Instagram in November, saying they were to blame and had expanded “too aggressively”.