FAQ

 

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1. What is East West One Planter’s Scheme (EWOPS)?

EWOPS is an oil palm plantation investment scheme, approved under the Malaysian Companies Act 1965. EWOPS allows investors to reap fixed monthly returns paid on a quarterly basis, with the investment capital payback upon expiry of the term of Planter’s Agreement.

2. Who is East West One Consortium Berhad (EWOCB)?

EWOCB is a company incorporated on 29th July 2004, who engages in the oil palm plantation business, particularly the development and subsequent management of oil palm plantations. EWOCB manages EWOPS as approved under the Malaysian Companies Act 1965.

3. How much is a unit of investment?

There are 4 categories of investments each with different selling price. They are Premier Category (RM58,888), Gold Category (RM28,888), Silver Category (RM10,000) and Bronze Category (RM5,000).

4. How do investors invest?

Investors can invest via online transfer, credit card (surcharges apply), and cheque deposit. Each investment needs to be supported with the following documents and forms:
  • Photocopy of investor(s) I/C or passport
  • Photocopy of beneficiary I/C or birth certificate
  • Stamp duty deposit slip (RM20 per application/ investment)
  • Photocopy of investor(s) savings passbook or bank’s statement
  • 2 sets of signed Agreements
  • 1 set of signed Application form

5. Can I have a joint investment, if so, how is the quarterly net return being paid?

Yes. Investors can have a joint investment with another person. The maximum number of investors are two investors per investment. The quarterly net return is paid to one account only, regardless of whether it’s a joint bank account or individual bank account. Depending on the joint investors’ decision stated in the application form, the net returns can be made payable to an individual bank account (Principal Applicant Only) or a joint bank account (Both Applicants Name).

6. What is the minimum age to invest in EWOP?

The investor has to be at least 18years old (after his/her 18th years old birthday) and above to be eligible.

7. What are the maximum blocks that investors can invest with EWOPS?

There are no investments limitations, investors can invest as many as they like depend on the blocks’ availability.

8. Will investors be getting the land title?

Investors will not be entitled to any share of land as they are only investing in a share of interest of the scheme. However, they will receive the Planter’s Agreement and Certificate in return for their investment, which entitle them to a specified fixed return and the return of capital upon the expiry of agreement period.

9. What returns can investors expect from their investments?

Investors can enjoy fixed annual returns based on the different category of investment, as follow:

Investment (RM) Annual return (%)
Premier (58,888) 1st 5 years-8%
6th year-10%
7th year-14%
8th year-16%
Gold (28,888) 8% annually for 6 years
Silver (10,000) 1st 5 years-8%
6th year- 9%
7th year- 11%
8th year-12%
Bronze (5,000) 8% annually for 8 years

10. What happens after the maturity period of the four investment schemes?

Investors will receive their 100% invested capital, after EWO has received investor’s original agreement and certificate upon maturity.

11. When and how do investors receive their dividends?

TMF Trustee will pay the dividends to the investor’s bank account directly, on a quarterly basis, which will be every end of March, June, September and December. Investors will also receive quarterly net return statements from the Management Company. For more details, please refer to Clause 14.10 of the Prospectus.

12. Can investor choose to accumulate all the dividends to increase their capital, thus
      increasing the net return of investment?

Investors will receive their dividends every quarterly and they are not entitled to accumulate all the dividends to increase their capital fund.

13. Is there any receipt to acknowledge the investor(s) investment in EWOPS?

After the date of full payment by investor, the Management Company will issue a Planter’s Certificate to the investor within 60 days, evidencing their investment in EWOPS.

14. What is the risk profile that investors will be exposed to when investing in EWOPS?

The risk is almost negligible because the returns are fixed, as stated in the net yield schedule attached in the agreement.

15. Can I withdraw from this scheme before the maturity date?

You may transfer your Planter’s Block(s) to another person or sell back to the Management Company after the 12months from the commencement date of Planter’s agreement, with the following documents/ fee incurred:

  1. Transfer to another person
    • Transfer form and Transferee’s undertaking form (can be found in the agreement)
    • Original agreement and certificate
    • RM20 (Stamp duty), RM15 (Payment of prospectus), RM100 (Transfer fee)- all to be banked into MBB 5601 0211 1371 (East West One Consortium Bhd)
    • Existing investor to request in writing pertaining to the transfer of investment
    • Photocopy of transferee(s) I/C or Passport and bankbook.
  2. Sell back to the Management Company
    • Repurchase form (can be obtained from EWOCB office)
    • Original agreement and certificate
    • Existing investor to request in writing pertaining to the repurchase of investment by the Management Company

The actual repurchase consideration will depend on the length of period lapsed between the 1st Anniversary of the commencement date of Planter’s Agreement and the date of repurchase. For more details, please refer to Clause 5.2 of the Prospectus.

16. What would happen to the Monthly Net Returns paid during the transition period of
      the transfer?

The trustee will only pay the fixed quarterly returns to the investors whose names were registered in record at the time of payment. No pro rata payment between transferor and transferee will be entertained.

17. What happens if the Management Company winds up?

EWOPS shall continue to exist for as long as there shall be a valid Planter’s Agreement, Planter’s Blocks and Planter’s Certificate. However, the Trustee can appoint another management company.

18. What are the differences of EWOPS compared with unit trust?

EWOPS is an investment with fixed annual return based on the investment category, and a 100% return of capital fund upon maturity of the invested scheme. As for unit trust, investors can choose their preferred mutual fund based on their risk tolerance (higher risk and return with higher investment in equity investment, and vice versa). Thus, risks often associated with the unit trust industry included market risk, interest rate risk, credit risk, investment manager risk, country risk and currency risk or foreign exchange. The investors may not be able to get the full investment capital back at the end. EWOPS and unit trust are both collective investment schemes that gather the savings of large number of investors. Although EWOPS is exposed to business risks, most notably inherent risks associated with the oil palm industry, these risks are mitigated through effective resource management, close supervision of oil palm plantation and effective cost control policy.

19. Why invest in EWOPS?

EWOPS is approved by Malaysian Companies Act 1965, under investment scheme. This scheme offers low risk in view of stringent vetting by the Companies Commission of Malaysia to safeguard the interest of investors. Moreover, fixed monthly returns are paid every quarterly by the trustee, with fixed medium term investment period, at a fixed net return based on the investment category. EWOPS also offered full capital payback at the expiry of investment period by the Trustee.

20. How many investment blocks will be offered for public subscription?

There are 7,567 blocks in total for public subscription with the following distribution of block availabilities (update of availability as of Feb 2014):

Premier Investment - 2,781 blocks (784 blocks)
Gold Investment - 344 blocks (200 blocks)
Silver Investment - 4,269 blocks (2013 blocks)
Bronze Investment - 173 blocks (0 blocks)

21. Can foreigners invest in this scheme and what is the currency involved?

As long as they have local bank account that operates in Malaysia. It is fine if they have foreign bank account, provided that they open the account in Malaysia. Pertaining to currency, all schemes are invested in Ringgit Malaysia (RM).

22. Who guarantees the capital and the monthly net returns?

EWO has appointed TMF Trustees Malaysia Berhad as the Trustee who acts as trustee for the benefit of the Planters to which the Trust Deed relates. Trust Deed protects the interests and rights of all Planters, and also sets out the duties and responsibilities of the Trustee. TMF Trustees will be responsible to ensure all terms and conditions stated in the agreement are adhered to.

23. Where is the location of EWO’s plantation and how many acres?

We have 15,725 acres of land for the plantation investment scheme and it is located in Ranau Sabah.

24. Why did EWOCB select Sabah for developing oil palm plantation?

Sabah has the vastness of land for a steady plantation sector, its agronomic factors, in particular, good soil and even rainfall are most suitable for oil palm cultivation. Sabah’s excellent growing condition is well-documented in the statistics of the Malaysian Palm Oil Board (MPOB)- the authority on oil palm in Malaysia-as the highest yielding area for the crop’s cultivation.

25. Is the scheme a "Ponzi Scheme"? Where and how the company raise its funds to pay
      investors upon maturity?

No, EWOPS is not a “Ponzi Scheme”. Company will start harvesting in the 5th year to pay investors upon maturity. As stated in Clause 15.1 in our prospectus, the Management Company undertakes with the Trustee to remit to the Reserve Fund Account, e.g. Premier Investment, “At the beginning of the 6th year of the Premier Category Planter’s Block, the Management Company undertakes to remit the sum equivalent to the Monthly Net Return and a further sum equivalent to ten per cent (10%) of the Subscription Fee to the Trustee to be remitted into the Reserve Fund Trust Account”, 20% at the beginning of 7th year and 70% at the beginning of 8th Year.

26. What happen if the Management Company calls for early termination of the scheme?

The Management Company is unable to initiate any early termination of the scheme without convening a meeting of planters for a ¾ majority in value for adopting a resolution in favour of such proposal.

27. Under clause 12 of the Planter's Agreement ie "CONSEQUENCE UPON TERMINATION",
      why is it that Planter(s) must pay back the Monthly Net Return together with an 8% per
      annum interest thereon as debts due and owing by the Planter(s) to the management
      company?

As refer to the Planter's Agreement under Clause 12, this is subject to any instances referred to in Clause 11.2(a), (b), (c) and (d).

28. Did the company take up insurance coverage on the plantation? What are the scope of
      the insurance coverage?

Yes, company has taken up insurance coverage of key risks for the physical assets of the Plantation, in line with the industry practice. The Plantation Management Companies will insure the Plantation only upon the planting of the oil palms against damage caused to the trees arising from events such as disease and fire.

29. What is Force Majeure under Clause 17 of the Planter's Agreement? Can the company
      elaborate further on this Clause?

It is the same as an Act of God, where a chance occurrence beyond the control of the Management Company has occurred, thus resulted in delaying the fulfilment/termination of the terms stated in the agreement.