MBI Group International Sdn Bhd, a company involved in multiple businesses, including real estate, has enriched many of its members over the past few years.

MBI operates an electronic share platform that rewards investors – or members – with dividends, recruitment commissions and “game redemption credits” (points). 

A staff member told The Malaysian Insight said that MBI Group has around 4.5 million members globally, with the majority from Asia.

One investor, Jonathan, said he invested US$1,000 (RM4,300) when he joined the MBI scheme about five years ago, adding US$2,000 gradually over the years.

The 37-year-old said he has since made almost US$30,000.

His businessman upline, who introduced him to the scheme, become a multimillionaire by investing US$100,000 and earning commissions by recruiting members.

“I have no worries about MBI. After all, I have made my money so many times over,” he told The Malaysian Insight.

He was asked to comment on the raids on MBI International’s headquarters in Ampang and its M Mall management office in Penang two days ago.

No worries over raids

The raids followed last week’s listing of MBI International and another MBI company, Mface International, in Bank Negara Malaysia’s (BNM) financial consumer alert list for conducting unlicensed financial activities.

MBI Group founder Tedy Teoh said yesterday his company respected the authorities’ right to investigate its affairs and would cooperate.

M Mall complex manager Teoh Jin Aik said it was a “routine check”. He said the authorities took some files but did not seize computers or freeze its bank accounts.

“There is no effect. Our system is working as usual. Members are not worried. Nobody is panicking and withdrawing investments,” he said.

A visit to M Mall yesterday showed mall employees working as usual. The many retail and food outlets were also open.

A kiosk operator selling snacks said everyone knew the authorities had gone to the management office but no one was particularly concerned.

“It is not a big deal. Retailers like me are not affected. We only rent the space from M Mall.

“We are also registered with SSM (Companies Commission of Malaysia), so it is business as usual for us,” he said.

M Mall is a popular shopping outlet on Jalan Datuk Keramat in George Town, Penang, for MBI members, who earn points by buying goods and services from retailers collaborating with the company.

Complex scheme, happy investors

Investors like Jonathan have no issues with MBI and are very happy with it.

Unlike conventional stock exchange, e-shares only go up with continuous demand, so investors are guaranteed of making money when they choose to sell or keep their shares for reinvestment.

Simon from Penang, who has been a MBI member for a few years, said the e-share platform uses a “split mechanism”.

“Let’s say an e-share is bought at US$2 and it goes up to US$4. Once the share’s value doubles, you get a bubble. So, the company splits to return the e-share value to US$2.

“But to prevent investors from losing money after the split, the company puts new e-shares into the market. Let’s say I started with 50 e-shares. After the split, the company gives me an additional 30 shares.

“I won’t be getting a full 50 shares because the company has something like a transaction charge. But investors who actively recruit members for MBI will earn enough commission to cover this transaction charge.”

He said the more times the “splits” happen, the more e-shares or profit the investors would accumulate. However, he was unable to explain where and how the profits were generated.

Simon said when he first joined the scheme in 2012, there were five to six splits a year, but fewer now because the e-share market had slowed a bit.

“You can sell your e-shares when you feel the price is right, withdraw your money or keep reinvesting.

“Investors don’t make a standard profit. How much you make depends on how you play with the e-shares.”

Simon said when splits happened, the company also gave out bonus points (previously known as Mcoin but now as O2O points) to investors who shop at MBI-affiliated businesses.

He started his MBI investment with just one account with US$1,000 but after topping up twice and reinvesting, he now has eight accounts and enough O2O points for many shopping trips and full-course family dinners.

Most of the money in the new accounts was from the profits made from the initial investment.

Good for business

Jonathan said apart from helping people make a little extra, he felt MBI was helping to stimulate the economy, giving business to retailers, restaurants and other entities that accept its O2O points as payment for goods and services.

A business owner with a restaurant in M Mall said if MBI was considered a money game operator like the rest, then it was the most established and stable one.

He said the company had many investors, including high-spending ones from China, who were in Penang a few weeks ago.

It was reported that MBI organised a shopping carnival at M Mall for some 24,000 investors from China.

The arrival of the Chinese nationals for the shopping outing saw hotels on Penang Island fully booked and city roads jammed up as the visitors were ferried to the mall in hundreds of buses.

“It won’t go down. If it does, many businesses will suffer,” the restaurateur said.

Multiple businesses

MBI itself also claims to be engaged in many different businesses through multiple subsidiaries.

On its website mbiv2u.com, MBI Group is described as “one of Southeast Asia’s fast-growing organisations” with “diversified businesses” and “network business in China, Hong Kong, Taiwan, Thailand, Indonesia, Singapore and other Asian countries”.

Its subsidiaries include MBI Holding, MBI Premier, M Mall, M Lux, M-Darts, Apple Blue Entertainment, Popcorn Entertainment, mface (social network), M Academy, MBI G9 Hotel, MBI Bird Nest, Asian Taste Seafood and Steamboat Restaurant, Aver Construction, Film Kingdom Group, Green One, GV Rewards, Gameview, H20 Biotech, One Publishing, On Connection, Soul Beauty, Red People and Zen Innovation.

In the Thai-Malaysian border town of Danok, MBI owns the Asian Cultural Village, M Hotel and M Leather. It is widely known that MBI owns a few hotels, apartments and other businesses in Thailand.

MBI International also has a mixed-housing development project in Padang Meha, Kulim, Kedah. The project is being handled by its subsidiary, ECK Development Sdn Bhd, according to mbidesaku.com.

ECK is developing a township on 100ha of freehold land near the Kulim Hi-Tech Park. The company is also setting aside 4.8ha for an Agro Park and 1.6ha for a convention centre.

The group said on its website that its vision is to become one of the largest conglomerates in Asean.

With that many subsidiaries and assets in Malaysia and overseas, Jonathan said it would be a surprise if MBI collapsed.

“How can it collapse when it has assets and businesses like hotels, restaurants and even a development project?

“Can you imagine the impact of such collapse on the economy? How many people are going to lose their jobs?” – May 31, 2017.