Learn more about Golden Agro Growers Scheme
Golden Agro Grower Scheme (GAGS) is an oil palm investment interest scheme, wholly owned, managed and operated by Golden Agro Plantation (Mukah) Berhad. The scheme is a regulated investment product in Malaysia and it was approved by Suruhanjaya Syarikat Malaysia (SSM) on 12 May 2012.
The plantation land is located in Mukah, Sarawak and the total land size is 10,443 acres.
To make it affordable for the general public to invest, every acre is divided into four plots i.e each plot is ¼ acre. From the 10,443 acres, GAGS has formed a total of 41,772 Grower’s Plots. From the total plots, only 70%, or 29,240 Grower’s Plots, are available for sale to the public and the remaining 30% of the plots or 12,532 plots will be held by the management company.
Principal features of the Scheme
The scheme offers investors the opportunity to participate in the oil palm industry without having to worry about the hassle of plantation management. With a starting investment level of just RM 8,000 per plot, members of the public can now own ¼ acre of oil palm plantation and are entitled to receive the following Net Profits:
Planting Phase (12 Nov 2012 to 11 Nov 2017)
- A Guaranteed Net Profit of 7% per annum of the Grower’s Fee, payable at 3.5% every six months;
- The 7% guaranteed return is guaranteed by cash deposits held in a Growers’ Fee Trust Account maintained by a license Trustee. The returns are calculated on daily-rest basis and will be credited directly into investor’s bank account on a semi-annual basis (3.5% respectively on the 12th of May and 12th of November).
Harvesting Phase (12 Nov 2017 to 11 Nov 2032)
- The primary objective of the investment is for investors to be able to enjoy the profits of a fully planted and matured oil palm plantation. From year 2018 onwards, all our oil palm trees will be yielding fruits and investors will enjoy a proportion of the net profit of the plantation based on the number of plots that they have invested in.
- The Net Profit for a Grower’s plot during Harvesting Phase in any year shall be calculated as follows:
- Net Profit (E) = (A-B) – D
A – FFB Sales (RM)
B – Cost of production
C – Gross Profit (Note: A-B=C)
D – Annual Management Fee (5% X C)
E – Net Profit (Note: C-D=E)
If the plantation generates an annual Net Profit of RM50,000,000, an investor who has invested 10 plots will receive the following returns:
10/41,772* X RM50,000,000 = RM11,969.70
*Note: Total number of plots of under GAGS is 41,772 plots (10,443 acres X 4 = 41,772 plots)
Capital AppreciationPrior to maturity in 2032, an Independent Valuer will be appointed to value the plantation. The plantation will be sold based on the valuation and the proceeds from the sale (after deduction the cost related to the sale of plantation) will be divided equally and distributed back to investors based on the number of plots held as at 2032.
Investors will stand to gain from a potential capital appreciation from the sale of the plantation as the value of plantation land is expected to appreciate over time.
The plots are transferable after 12 months from the date of investment. Investors are able to transfer their rights to a willing buyer by simply filling up a transfer form and paying a nominal administration fee.
Alternatively, Investors can liquidate their holdings by selling the plots back to the Management Company via our repurchase program after the year 2018.
Annual Management Fee
No annual management fee will be imposed during the Planting Phase.
During the Harvest Phase, an annual management fee amounting to 5% of Gross Profit will be charged. This management fee is essentially a performance-tied incentive for our key management team. In the event that no gross profit is achieved, no management fee will be imposed.
Our investors are entitled to obtain a profit-a-prendre interest in the Growers’ plot(s) whereby they shall be entitled to receive the Net profit annually in accordance to the terms and conditions spelt out the Trust Deed, Grower’s Management Agreement and the rule.
The team behind GAGS believe it is essential that all our investors know that their investments are safe with us. Transparency is key –The rights of all our Growers are clearly spelt out in both the Trust Deed and the Growers Management Agreement that is signed with the Management Company.
There are several key features built into the scheme to ensure that our investors’ interests are safeguarded at all times. Firstly, GAGS is an interest scheme that is fully approved, endorsed and regulated by the SSM (Companies Commission of Malaysia). – click here for approval letter. As part of our responsibility to our growers, we publish an updated scheme prospectus bi-annually that will provide the latest up-to-date information on our scheme and our plantation, including the latest financials and the progress report on the development of the estate.
A professional Trustee company that is licensed and regulated by Bank Negara has been appointed to safeguard the interest of the investors. The trustee is governed by the 1949 Trust Companies Act and their exact roles and responsibilities are clearly spelt out our Prospectus.
An external financial auditor is appointed to audit the financials of the company every year and the financial results are fully disclosed and reported in our Prospectus on a bi-annual basis.
In addition, an independent Plantation Auditor has been appointed to audit the operations of the plantation. An independent plantation audit will be conducted twice a year and the report will be submitted to the trustee, regulator and investors before 12 May and 12 Nov every year.
Golden Agro Growers Scheme Investor's Protection Structure
Investors’ interest are protected by the appointment of a Trustee licensed by Bank Negara, an independent Financial Auditor, an independent Plantation Auditor and a Solicitor.