Imho, this may not be a scam. When you are saying the word "scam", you are making the people who already put money in this "investment" to defensive mode.

However, I still think you should aware of the risk that the company 'cabut lari'. We got many examples of that type of company in Malaysia. Ladang ikan keli, rumah burung layang2, ladang rumpai laut. Not saying these are scam but there are wolves who are using the successful business model to collect easy money.

Now, they are using fancier approach, crude oil investment. As I said, this may not be a scam but it raise a flag when they give 12% annual dividend.

If I am correct, this investment is risk free? A risk free with 12% dividend, greatest deal that can even beat ASB.

P/S: For those who want to know the business model of this group, it is like this:

You buy RM100k oil, this Group will hold the oil for you (cause 100k oil is not that pretty to keep at your house).

Then, the group will sell back to oil company (shell, petron, petronas) at an increased margin because the oil company is paying back in credit term.

I forget how they force the oil company to pay but for 100k oil they will pay 112k at the end of 12 months.

You can reinvest your capital to buy more oil or collect back your money.

Why risk free? Hell, you are selling the oil to the oil giants, what kind of risk we are talking about?

But the main concern is that does such arrangement exist? If I got money, this is a good way to burn some money. At least you have the status of an "oil investor" even if your being duped.

If Im not mistaken they are using the loophole of "there are not many oil supplier provide long term credit".

I myself is curious on why do the oil company wants to pay extra 12k for every 100k oil they buy.

I may be wrong on the numbers as I dont remember much but I clearly remember the "buy 100k oil, get back 100k + $$".

This method is not impossible, we do know that Giants Corp like credit term than cash term. But for a company that is not known, not backed by government, investing in Feedlot make more sense.