Prime Minister Datuk Seri Anwar Ibrahim, who also chairs Khazanah Nasional Bhd, ordered a comprehensive probe into Xeraya Capital, a wholly owned subsidiary, following governance concerns and possible financial irregularities uncovered in July 2026 [1, 2, 3, 4, 5, 6, 7].
Xeraya Capital, established in 2012, manages Khazanah’s life sciences investments with about US$500 million under management as of 2020 [1, 2, 3, 8, 5, 6, 7]. The investigation began after Xeraya’s own board found irregularities in documentation related to past transactions and initiated a review process [8, 5, 6, 7]. The board said it takes these concerns seriously and has moved to strengthen oversight [8].
Anwar emphasized governance as a matter of "morality, values and the future of the nation," and insisted the probe is not politically motivated [2]. He stated, "If there is any breach of governance, investigate it. That is what it means to be firm" [4]. He praised Khazanah’s current management for their proactive efforts and adherence to governance standards despite legacy issues [5, 7].
The prime minister ordered the investigation to follow proper legal channels with relevant authorities and courts to decide any prosecution or penalties if violations are confirmed [1, 2, 3]. He said, "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" [5].
During Khazanah's board meeting on August 20, 2026, members agreed to investigate all governance-related issues within Xeraya Capital [4, 5, 6, 7]. Anwar also referenced prior losses in government-linked entities like Tabung Haji and Felda to underscore the importance of accountability in protecting public funds [1, 2, 3, 5, 6, 7]. He said uncovering misconduct in government-linked companies is essential to prevent financial losses ultimately borne by the public [5, 6, 7].
Xeraya Capital focuses on global life sciences venture investments and had targeted US$400 million for its fourth fund in 2020 [8]. The inquiry into its governance and financial records will continue under the oversight of Khazanah and relevant authorities, with outcomes pending further review and possible legal action.
