In July 2023, Malaysia's KWAP invested approximately US$47.7 million (around RM200 million) in Indonesian aquaculture startup eFishery, which offered digital solutions to modernize fish and shrimp farming [1, 2, 3]. The investment followed due diligence, including independent verification of audited financial statements by internationally accredited auditors [1, 2, 3].
Despite the rigorous checks, eFishery engaged in a well-planned fraud by manipulating its financial reports to deceive investors such as KWAP [1, 2, 3]. The startup was backed by a consortium of leading international institutional investors and technology funds, including Temasek, SoftBank, 42XFund, and Northstar. Prime Minister Datuk Seri Anwar Ibrahim noted these investors had internationally recognized governance and control processes [1].
Following the fraud's discovery, KWAP and other investors launched legal action and fund recovery efforts. They also initiated internal governance reviews and measures to strengthen investment controls [1, 2, 3]. KWAP completed a comprehensive review of its investment evaluation, approval, and monitoring processes related to eFishery. Its findings were submitted to KWAP’s board for detailed scrutiny [1, 2, 3].
KWAP reaffirmed its commitment to transparency, integrity, and accountability in managing civil servants’ retirement funds, with improvements implemented to reinforce safeguards for future investments, the prime minister added [1].
In 2025, eFishery co-founder Gibran Huzaifah was sentenced to nine years in prison by a court in Bandung, Indonesia, for his role in the fraud [1, 2, 3].
On July 15 and 16, 2026, Prime Minister Anwar Ibrahim issued a parliamentary reply outlining KWAP’s due diligence steps, the nature of the fraud, and the subsequent legal and governance actions taken [1, 2, 3].
