Durian Capital Launches Malaysia’s First Licenced Durian Investment Scheme

Alex Cheong Pui Yin

12th November 2021 - 3 min read

Homegrown agriculture management company Durian Capital Bhd has launched its Durian Capital Investment Scheme, allowing Malaysians to invest in the Musang King durian market. It is Malaysia’s first durian investment scheme to be licensed under the Interest Scheme Act 2016 by the Companies Commission of Malaysia (SSM).

Under this scheme, Durian Capital has dedicated 200 acres for the cultivation of Musang King durians, and interested individuals can invest in it with a minimum amount of RM10,000 per unit. They can do so via an online platform hosted on Durian Capital’s website, with prospectuses and semi-annual reports sent to them for regular updates.

In terms of returns, the Durian Capital Investment Scheme is expected to offer a projected return on investment (ROI) of 7x, as well as approximately 14% of annualised returns (compounded). It is also looking to provide a 3% interim yield between Year 1 to Year 4, and 30% revenue share between Year 5 to Year 15.

The company further reassured potential investors that the Durian Capital Investment Scheme will be assisted by an experienced agriculture team, who are – in turn – supported by technical advisors from Universiti Putra Malaysia (UPM). They will also leverage on best practices in durian cultivation and modern agri-technologies to optimise the yield of the Musang King produce, including drone surveillance and data analytics.

Durian Capital said that the launch of this scheme is timely as global demand for durians is projected to remain robust in the near future, up to US$30 billion by 2025. This growth will be supported by the strong market demand in China, where the fruit is growing in popularity. In fact, durians have replaced cherries as the top fruit category imported by China in terms of value in 2019. Musang King is expected to continue its reign as a premium durian product as it becomes more accessible to international markets.

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The chief executive officer of Durian Capital, Afiq Johar said that moving forward, the company aims to play a role in strengthening financial literacy and resilience among Malaysians. “We hope that our Durian Investment Scheme can democratise agriculture investing and offer an inclusive and attractive product that will help Malaysians prepare for a better future,” he shared.

Meanwhile, the managing direct of Durian Capital, Dr Vijay Pillai expressed his gratitude to SSM for providing companies with alternative financing opportunities to grow. “We hope that being licensed under the Interest Scheme Act 2016 will help strengthen investor confidence in our offering as it ensures governance, transparency, and clear investor protection. We hope that our Durian Investment Scheme will be a success and spur the growth and advancement of Malaysia’s agriculture sector,” he said.

(Source: Durian Capital)

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Alex Cheong Pui Yin

Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

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