Doctor Loses RM300,000 in an Investment That Promised 10% Monthly Returns

A Malaysian doctor has lost RM300,000 after investing in an alleged project linked to a student welfare initiative that police say did not exist. The 38-year-old private sector doctor and her husband were introduced to an investment described as the “Kad Prihatin Siswa” project in early 2023. Their dealings with the man promoting the venture took place both in person and through WhatsApp, according to police.

Ampang Jaya police chief ACP Khairul Anuar Khalid said the project was presented as a sizeable initiative purportedly involving 20 universities and approximately 620,000 students.

Police said the investment agreement promised returns of 10 per cent every month for 12 months, after which the investor's original capital would supposedly be returned. The doctor was also registered as holding a 10 per cent stake in the company involved.

During 2023, she transferred a total of RM300,000 through five payments into a bank account belonging to the suspect. Yet the expected income never materialised.

Despite the apparent formalities surrounding the arrangement, police said the doctor received none of the promised profits or dividends. She and her husband repeatedly sought clarification, payment of the outstanding returns and a copy of the stamped investment agreement.

Instead of receiving the money, they were allegedly given repeated explanations and delays.

The victim eventually concluded that the investment was not what it had been represented to be and lodged a police report. Authorities said no arrest had been made at the time of the latest police statement, while investigations were continuing under Section 420 of the Penal Code for cheating.

For Malaysian investors, promises of a fixed 10 per cent return every month should trigger particularly rigorous scrutiny. At that rate, an investor is being promised returns far beyond what conventional low risk financial products would ordinarily be expected to deliver.

Documentation should not replace independent verification. Investors need to establish whether the company, project and investment activity genuinely exist, whether the people soliciting funds are authorised to do so and whether the promised returns make economic sense.