Malaysian pension fund KWAP invested US$47.7 million (RM194.35 million) in Indonesian aquaculture startup eFishery before investigators uncovered manipulated financial statements. Prime Minister Anwar Ibrahim described the investment as a “premeditated fraud.” KWAP and other investors have filed lawsuits, reviewed oversight procedures, and begun work to recover the invested funds.

KUALA LUMPUR, thekabarnews.com—Prime Minister Datuk Seri Anwar Ibrahim said eFishery, an Indonesian aquaculture technology startup involved in a major financial scandal, had deceived Malaysia’s civil-service pension fund into investing almost RM200 million.

In a written reply in Parliament on July 15, Anwar said Retirement Fund Inc. (KWAP) invested US$47.7 million (RM194.35 million) in eFishery’s US$200 million Series D funding round in 2023.

He said the investment decision was in line with KWAP’s evaluation and governance procedures. Part of the process was based on financial statements audited by internationally recognized certified auditors, and the investor consortium also carried out independent due diligence.

“The eFishery investment was nevertheless a planned fraud, and there was manipulation of financial reports by the management of eFishery,” Anwar told The Edge Malaysia.

Anwar stated that KWAP was not the only institution affected by the situation. Other investors in eFishery are Singapore’s Temasek, Japan’s SoftBank, 42XFund, and Northstar.

The Prime Minister explained the situation when replying to a question from Subang MP Wong Chen about what accountability measures the authorities had taken against KWAP’s board, investment panel, and senior management over the approval and supervision of the investment.

Anwar said KWAP, as part of the consortium, had taken legal action and recovery efforts. He did not reveal how much of KWAP’s investment remains salvageable.

KWAP has also conducted a complete review of its evaluation, approval, and monitoring processes. The fund reported its findings to its board and subsequently implemented measures under its governance and accountability framework.

“KWAP remains committed to managing civil servants’ retirement funds transparently, ethically and accountably,” Anwar said, referring to improvements. Anwar stated that the fund had made improvements to tighten safeguards for future investments. The fund has made improvements to tighten safeguards for future investments.

eFishery has been mired in controversy regarding its financial reporting irregularities. The Bandung-based startup, once valued at over US$1 billion, attracted major global investors with technology designed to support fish and shrimp farmers.

On 29 April 2026, the Bandung District Court sentenced Gibran Huzaifah, the founder and former chief executive of eFishery, to nine years in prison for embezzlement, and money laundering related to inflated company accounts. The Bandung District Court sentenced Gibran Huzaifah to nine years’ imprisonment on 29 April 2026.

Judges found him guilty of embezzlement and money laundering related to inflated company accounts. The court also imposed a fine of Rp1 billion on them, the court ruling reported.

The case has heightened the importance of financial reporting, auditor verification, and investor due diligence across Southeast Asia’s startup sector. The immediate priorities for KWAP are to pursue recovery efforts, and bolster safeguards for future private-market investments.