Good loan, bad loan

Becomes

Rich dad, poor dad

Where is their plantation?

Where can see the projected returns?

Most wealth are created from property investment....

It accelerates wealth accumulation...can work less

2% of population has more than RM1mil wealth....without property investment: probably only 0.2%

Take the proven path...forget the musang path

Q1. Why dont the musang king durian planter issue company "stock" instead of "investment per tree scheme"

Q2 How the hell a musang king tree worth RM10k each? Why not sell them for RM1k per tree at 90% discount? Win-Win

Time sharing, plot sharing or business sharing business is generally impractical.

If it is profitable, you should take a business loan and operates it as whole to have sole control in operation.

Some details you need to obtain from them:

Since you said they already acquired and cleared the land and started planting,

1. The location of their plantation
2. The land title
3. Visual inspection of the said land to confirm that it is indeed cleared and started planting
4. How to identify which one is your tree and say if you invested in 10 trees, 5 of them died (which is quite common in durian plantation), how are they going to compensate you?
5. How to know how many durians on 'your' tree, or do they count by average (total number of durians divided by number of trees) and how to calculate profit
6. How to know whether their costing is genuine?

Just a few enquiries to sort out to help you make your decision. This deal sounds good but too vague and many grey area to me. I 100% won't go into such business that offering such vague deals.

People nowadays ... the more you ask them to be careful .. the more they want to invest because they think " make money must be brave!" Ha ha

Hi, many thanks to your suggestions!

1. The location of their plantation
- location is in pahang, but i don't have the exact location.

2. The land title
- they lease the land from the government for 60 years i think. There is a clause in the SnP that they will refund in case the land is reclaimed by government.

3. Visual inspection of the said land to confirm that it is indeed cleared and started planting
- I have been shown plenty of photos of cleared land and plantation is on-going.

4. How to identify which one is your tree and say if you invested in 10 trees, 5 of them died (which is quite common in durian plantation), how are they going to compensate you?
- the company will hold a portion of the trees (not selling everything), so in case there are trees that died, they can compensate trees with similar age. The other option is they will compensate the amount the investor paid if the trees died within 10th year, if it happened after 11th year, then the company will compensate double the amount invested. But it is not clear where they get the money and how soon they pay. Is there some sort of insurance that exists for plantation?

5. How to know how many durians on 'your' tree, or do they count by average (total number of durians divided by number of trees) and how to calculate profit
- they will count by average.

6. How to know whether their costing is genuine?
- this is another part that is vague. I asked the question but the answer that I got is they are still developing the methodology.

Hi All,

I was introduced to a musang king investment scheme by a friend.

The scheme was offered by a company called eco starland (webpage here), but they do not put up the details of the scheme on their webpage.

The deal is:
you pay around RM 10k+ per tree for ownership of the tree for 40 years. The company will take care of the trees for you, after fruiting and selling the durian (you can choose to sell the durian to the company), minus the expenses, the profit is split between the company and owner. The projected profit is quite high, with full return of capital in year 7 after investment. As of now, they have acquired and cleared the land, currently planting in progress. The targeted market for the durian is to export to China, which has high demand of durian. There will be Sales and Purchase Agreement should one decided to invest.

After doing some due diligence, I think it is less likely to be a scam because there is some credibility to the management team:
1. The CEO Yirin is also involved in other businesses. One of it is Dynaplast, which although less established, but is a supporting evidence of credibility.
2. The CFO Mr Tong is quite an established farmer and he was featured in Malaysian Agriculture magazine (Issue 12). He is also the owner of Tong Seng Nursery/ Durio Farm.
3. The CFA Mr Wee is the son of Wee Chong Beng (the person who registered Durian Raja Kunyit D197 (Musang King) at the Ministry of Agriculture on 1993).

Please point out if you feel that my due diligence is insufficient/ flawed.

What makes the investment to have higher risk is:
1. The company is young (not listed) and this should be their first investment project.
2. There is no clear information on how the company is going to report profit and expenses yet, they could be reporting false numbers.
3. There is no compensation in the event of force majeure.
4. Although the company will compensate in the event of disease, but it is an unknown if they have any funding to make the compensation (say, entire plantation is wiped out by the disease).
5. Of course, it can still be a scam...

Please let me know if you think it is a viable investment, any risk that I missed out, any more due diligence that can be done, etc.

In the end I didn't invest. Like everyone said, the risk is too high.