East West Horizon Plantation Bhd has launched the East West Horizon Planter’s Scheme, promising a minimum average return of 76% over eight years.

The oil palm plantation interest scheme promises investors an average annual return of between 9.5% and 11% in the first eight years, depending on the size of their investment.

There are four investment categories. The Sapphire category, which is RM20,000 per block, promises an average annual return of 9.5%, while the Ruby category is RM60,000 per block, with an average annual return of 10%.

The Emerald category is RM120,000 per block, with an average annual return of 10.5%, while the Diamond category is RM180,000 per block, with an average annual return of 11%.

The scheme matures after eight years. The returns are paid into investors’ bank accounts on a quarterly basis by the appointed trustee during the tenure of the investment. Capital is fully repaid to the investor upon maturity of the scheme’s tenure.

According to its press release, the scheme is located in Sabah, which offers “favourable agronomic factors for oil palm cultivation. In particular, good soil and suitable weather (both rainfall and sunshine)”.

Progress is ahead projections with 7,500 acres planted so far. The professionals who are managing East West One Planter’s Scheme (EWOPS), launched in 2011, will manage this scheme. They collectively have more than 100 years’ experience in the oil palm industry.

The remaining blocks under EWOPS are expected to be fully sold by end-2015. EWOPS is managed by East West One Consortium Bhd, which comes under the East West One Group (EWOG) umbrella.

When asked whether the promised returns will be given if there is a lower yield, EWOG chief corporate officer Kenneth Chai says, “Absolutely. Those are contractual returns and we have to honour it. If you look at EWOPS, we have an unblemished track record in paying back the quantity returns.”

EWOPS investors have received 15 consecutive quarterly payouts since the launch of the scheme in May 2012. Chai said the new scheme was launched because EWOPS had performed well, with 98% of the blocks already sold.

TMF Trustees Malaysia Bhd has been appointed trustees of the new scheme. The scheme and accounts will be audited on a half-yearly basis to ensure transparency.