It isn’t easy running a business. And for Langkawi waterpark owner, Mr. Fu (符), it’s even harder when your investors have turned against you.
Yesterday (6th November), a group of investors claimed they had been scammed of RM43 million after receiving nothing from investing in a waterpark in Langkawi. Well, the waterpark owner recently came forward to deny the claims and clarify what had actually happened.
The victims recently held a press conference through DAP’s Public Services and Complaints Department. Reportedly, there are actually 500 investors, yet only 312 people deigned to report the issue. The investors had allegedly invested roughly RM30,000 to RM5 million each, totaling into an amount of RM60 to RM70 million.
Supposedly, the company claimed the investors would be able to obtain a total investment and capital return of up to RM200 million in five to six years. And according to their signed contracts, the investors would profit from the proceeds of the park’s admission tickets. But, notably enough, there was no dividend policy included.
One of the investors added the group had supposedly discovered that the investment had not been approved, nor had it obtained a Certificate Of Completion And Compliance (CCC) from the local government. They also claimed the waterpark company missed submitting a financial report in July 2022 and has been ignoring their inquiries.
After hearing about the complaints, waterpark owner Mr. Fu was allegedly left bewildered. “If I were a fraudster,” he reportedly told China Press. “I would have run away (a) long (time) ago. How could I continue to operate?” Mr. Fu emphasized that the waterpark in Langkawi is currently still operating and has not ‘vanished’, nor was it a scam.
In fact, he felt it unfair that it had been reported to the police by investors. Allegedly, they have simply been facing problems in their business. He cited problems such as a slower visitor flow since the epidemic, and that their electricity had been cut off by Tenaga Nasional Bhd (TNB) over unpaid electricity bills.
They were supposedly able to resume operations after friends helped pay off the pending bills, but as of now, the park is allegedly yet to make a profit. “I didn’t say that I won’t give you a return. It’s just that I haven’t made a profit yet. If you look at my account, you will see for yourselves that there is no money at all,” he said.
Mr. Fu added that there are weaknesses in their marketing, management and cash flow aspects but he believes he will be able to deliver returns to the investors by next year. He also claimed that they are working on stabilizing and improving the profitability of the park.
“I openly discussed (this) with investors and asked them to come up with effective solutions, but they just complained, which will not make the business better,” he told China Press. Mr. Fu added he had presented several solutions to the investors, such as joining the management team, and giving them cash coupons but was apparently rejected.
However, Mr. Fu is fairly confident he is in the clear as the police had declared the matter a civil case and not a criminal one. This was after he had been summoned to record a statement and had submitted all relevant documents. “If I was making money but not paying investors back, then I should be scolded, but that’s not the case,” he said firmly.
Still, Mr. Fu has encouraged his investors to contact him any time regarding issues with the waterpark. He also criticised relevant parties for getting involved without looking properly into the matter.
Well, for now, we wish Mr. Fu and his investors the best. Hopefully, business at the waterpark will pick up soon for all their sakes.
Watch the press conference here:
Sources: China Press (1)(2), Oriental Daily, YouTube
