Swiftlet House Investment 6% Return But Only 0.1% Investors Ultimately "Gone Without a Trace"

The swiftlet house investment plan's returns did not match the promises made. Vouchers were exchanged for products priced several times above the market rate. The promised over 6% return turned out to be only 0.1%, leaving investors with little to show for their investment.

Unable to find a resolution, investors held a press conference on Thursday, calling for more victims to come together and discuss the next steps.

Investor He Guosong stated that he first learned about the swiftlet house investment project in 2010 through a newspaper and contacted an agent for more details.

He said the information provided by the agent showed that the directors of the investment plan's trust units and management company were reputable companies and individuals, which convinced him to participate in the investment plan.

He stated that each unit of the investment plan cost RM10,000, and the company also promised an 8% return in the first 6 years. This return was provided as vouchers, allowing investors to redeem products from the company, while from the seventh year onwards, a 6.4% return was promised in cash.

He Guosong held a press conference today with several investors, accompanied by DAP Lian He Yuan State Assemblyman Yew Jia Hao, to explain the situation.

He pointed out that no anomalies were detected in the company for the first 6 years of investment. It was in the seventh year when investors realized they only received a 0.1% return instead of the promised 6.4% after which the issue with the company became apparent.

He said that upon further checks, they discovered that the trust unit was changed without notifying investors. They were unable to contact any company officials, and the firm responsible for product redemption had already closed.

He stated that after discovering the issue, investors began to file complaints with various bodies, including the Company Commission of Malaysia (SSM), Securities Commission Malaysia (SC), and kept requesting the new trust company to hold an annual meeting to inform investors of the situation.

He Guosong indicated that the trust company only held the meeting on December 31, 2024, during which investors were informed that the management company's earlier claim of having investments in 24 swiftlet houses was false. In reality, only 2 swiftlet houses were under the company's name.

He said that during the meeting, the trust company proposed to sell these two swiftlet houses. After settling all debts, the remaining funds would be returned to investors. However, this motion was rejected by the attending investors.

He also mentioned that he invested RM40,000 in this investment plan and also introduced friends and relatives, bringing the total amount to approximately RM100,000.

Another investor, Zeng Zhihui, stated that although investors started to file complaints and request meetings after discovering issues in 2017, it wasn't until December 31, 2024, due to bureaucratic delays and the pandemic, that the new trust company held a meeting.

He pointed out that according to their understanding, this investment case involved nearly 3,000 investors, so the amount of money returned to investors after selling the swiftlet houses and clearing debts would be very little.

When asked whether investors could indeed use the 8% return vouchers to exchange for products in the first 6 years, Zeng Zhihui confirmed having done so. However, he believed the products were priced several times higher than the market price.

He cited an example where a can of powder exchanged using vouchers cost several hundred ringgit, and 250 grams of swiftlet saliva cost over RM10,000.

Lin Junrong, the National Secretary of the Socialist Youth League, who accompanied the victims at the press conference, hopes today's press conference will find more investors to consolidate everyone's efforts to discuss the next steps.

"This includes complaints to the relevant authorities and potentially taking legal action. However, some decisions depend on investors reaching a consensus."

Therefore, he calls on those who participated in this swiftlet house investment project to contact 012-9302383 or himself at 016-2753589 to coordinate the next steps for investors.

Meanwhile, DAP Lian He Yuan State Assemblyman Yew Jia Hao stated that he would write to the relevant agencies, including the Company Commission and Securities Commission Malaysia, as well as Bank Negara, hoping they will provide solutions for the victims.

He said that as this involves a public crowdfunding project, all financial-related institutions should provide clear explanations and directions.

"They are the regulatory bodies and must provide clear instructions and directions so that investors know what to do next."

Attending the press conference were another victim, Laji, Yew Jia Hao's assistant Wang Junqiang and Zhang Bingquan.