What makes durian farming a hot new investment option for Malaysians

China loves durians. Up until recently, it only allowed Thailand—which controls 90% durian exports—to send the frozen fruit over. Malaysia now has the permission to increase its durian export to China, and to expedite this process, agriculture management firms like Durian Capital Bhd, PJC Agro, and Plantations International are luring eager retail investors to put their money into durian farming. But the investment lock-in is at least 15-25 years

Durian has been a well-loved delicacy among Malaysians but the polarising fruit has also gained a lot of popularity in China

The demand for durian, especially the premium variety Musang King, soared to new heights, when China allowed whole frozen fruits to be exported from Malaysia in mid-2019

Suddenly, there’s a gold rush in durian farming to satiate the increasing demand from China. Enters durian investment products

The investment products promises lucrative returns, but planting and cultivating durian trees take time, hence there’s a long lock-up period of at least 15 years

It is a truth universally acknowledged that a 20-something in possession of a steady income must be in want of a… good long-term investment scheme. So when 29-year-old Malaysian, Luke*, recently invested RM10,000 (US$2,400) into a scheme that promises 10X returns with a lock-in period of 25 years, we shouldn’t have batted an eyelid. Except Luke invested in durian farming.

“I’m okay with the 25-year lock-in period. The interest/returns could be my retirement savings,” Luke said.
Perhaps, but since when did 20-somethings start investing in produce?

Due to rising inflation and low interest rates, younger investors hungry for returns—like Luke—have been increasingly looking at alternative investment opportunities in Malaysia.

AUTHOR

Ka Kay Lum

Based in Kuala Lumpur, Ka Kay covers investment activities, aka following the money, across Southeast Asia and in-depth stories on the often-overlooked Malaysian startup ecosystem. She was previously a regional writer for Nikkei-owned DealStreetAsia.

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