What is INTEREST SCHEME?

There are numerous interest scheme being offered to public to participate for the past few years. It heats up when investors are looking to various instruments to grow their money after the 2008 global financial crisis. But, before we participate in those scheme, are we really fully understand what is Interest Scheme?

Interest Scheme is a way of doing business in Malaysia. Interest Scheme involves the pooling of financial contribution from the public in exchange for an interest in a particular scheme. Such interest includes the usage of the facilities and services provided under the scheme or profit or returns, depending on the nature of the scheme.

Rules and Regulations

Promoter of an interest scheme must register the scheme with SSM before it can be offered to the public. The sale of interest is governed by the provision of Division 5 of Part IV of the Companies Act. The promoter of an interest scheme is also required to comply with the Policy Guidelines and Requirements issued by SSM from time to time.

'Interest' is defined under section 84 of the Companies Act as:

A right to participate or interest in any:

• profits, assets or realization of a business;
• common enterprise with expectation of profits, rent or interest;
• time sharing scheme; and
• investment contract.

How to identify an Interest Scheme?

• You will be required to make payment to participate in the scheme
• You are not a shareholder of the company
• You are not involved in the day-to-day management of the scheme
• You have interest in the business or the scheme offered

AND any one of the following criteria:

• You have interest in the profit, asset and realization of a business or a scheme in Malaysia or elsewhere
• You are promised that you will procure returns from the payment you made
• You acquire the rights/interest in a property which includes the right to use the facilities on the property for a period of more than 12 months
• You have the right to occupy any property for 2 or more times during the tenure of the time-sharing scheme

There are various types of Interest Scheme which offers:

1. membership subscriptions of more than 12 months by Gold Clubs, Recreational Clubs and Fitness Clubs
2. participate in time-sharing scheme
3. invest in plantation and aquaculture scheme for commercial purposes (etc. Sharefarming)
4. invest in Breeding of Livestock for commercial purposes (etc. swiftlets, catfish)
5. invest in business whereby the investors are not involved in day-to-day management
6. purchase burial plots, urns and columbaria by Memorial Park
7. purchase undivided interest in greebelt land where by purchasers are let to expect profit from the sale of the appreciated value of the land (Land Banking Scheme)

Click here for FULL list of registered scheme in Malaysia
Click here for FULL list of TERMINATED scheme in Malaysia

Source: Suruhanjaya Syarikat Malaysia (SSM)

Broad-Ban in Malaysia?

Forget about the old fixed line internet connections anymore. We have the on-the-go broadband services, which provide almost unlimited boundaries for internet lover to surf anytime anywhere. However, you may not know a very unpleasant scenario is happening in Malaysia (at least I found out now).

Although I comment about TM's monopoly status in fixed line internet connection previously, I still prefer Streamyx for its unlimited surfing, lower monthly charges, and stable connectivity. Most importantly, more than one people can online at the same time, without extra fees. Whereas, broadband cannot.

Don't know #1

Recently, I moved to a new area, and hopes to subscribe for Streamyx (fixed line internet service provided by TM). However, I was shock to found out that I cannot subscribe for Streamyx, because my area was under Maxis territory. Wow… Sounds like I am living in the battle-field, where Maxis won the game!!!


The reason given was that my area's telephone line is bought over by Maxis, and Streamyx needs the telephone line to connect. Since this was the only fixed line internet service you can find in Malaysia, and again thanks to TM's monopoly status, I have no choice, but to look for broadband service.


Don't know #2

Then, I subscribe for a broadband service, but, the connection is slow (running at below 100kbps during peak hours). Can you imagine how slow 100kbps is? It's like opening a single website until you felt asleep. So, I went to another service provider to en-quire  theirs. Thanks for his honesty, he told me that if you are staying near the mountain, and in an apartment unit above 5 storey, you can't expect to get a good connection.


Conclusions… Broad-Ban

Are we living in a business friendly society, in the expense of public's freedom of choice? 
First, Maxis is wrong by conquering certain areas, which undermine the choice of citizen there. 
Second, why TM agreed to let go some of its assets?


Finance Malaysia thinks that Rakyat should be given to freedom to choose for their preferred service. Business owners should cares about the difficulties faced by Rakyat. And, government should monitor the latest development which could affect the welfare of Rakyat. Internet services are very important our daily lives now. Oh my dear Malaysians.


*The telecommunication company is expanding its territory now. Would your area be the next battle-field?