This article first appeared in Forum, The Edge Malaysia Weekly on March 31, 2025 - April 6, 2025

Just when the chapter on MBI was about to be reduced to a page in the history books of investment scams in Malaysia, the investigation into the money trail of one of the longest-running pyramid schemes in the country came back to life.

It restarted two weeks ago with the police summoning two lawyers in Penang who had handled transactions related to MBI and seizing documents. The special team from Bukit Aman carted away files related to MBI, its land and share transactions involving founder Tedy Teow Wooi Huat and his family members.

Last week, the investigation led to corporate personalities in Kuala Lumpur who had started their businesses in Kedah. By the end of the week, newspapers were flush with reports of lawyers, property developers with the titles of “Datuk” and “Tan Sri” and architects being called in by Bukit Aman to investigate their transactions in relation to MBI.

So far, the police have yet to come up with an official statement on their investigations.

MBI, a pyramid scheme that masqueraded as a digital coin trading platform, had started in Penang in 2012. Teow operated through a slew of private companies into which investors had channelled their money.

Among the private companies were the likes of MFace International Sdn Bhd and MBI Marketing Sdn Bhd. Together, MFace International and MBI Marketing collected a total of RM1.6 billion between 2012 and 2018.

By early 2017, an enormous amount of money was flowing into Teow’s private companies. And it was no coincidence that he was the biggest purchaser of property in Penang and the Klang Valley. Wherever he went, property developers knocked at his door offering their projects.

Until today, nobody can put a finger on how much money was collected by Teow through his MBI scheme.

When the authorities, led by Bank Negara Malaysia, raided MBI’s offices in Penang and Kuala Lumpur in 2017, the amount discovered was only RM177 million. Which means a large amount of money that went into the various companies under the MBI scheme remains unaccounted for.

This is why the police are investigating MBI’s money trail. The question is, why is Bukit Aman on the money trail now, some seven years after MBI collapsed? Why didn’t they go after Teow and his associates when MBI collapsed in 2018 and Teow was still running his scheme from Danok, Thailand, between 2019 and 2022?

This was before Teow was arrested by the Thai police and extradited to China in August 2024, after a two-year court battle.

One reason attributed to the police probe is the impending visit of China’s President Xi Jinping, which is likely to happen next month. This is on account of the fact that investors from China were among the biggest victims in the MBI scam.

The end of MBI started in 2017 when Bank Negara coordinated a raid on the company’s premises. A year later, Teow, a director of his companies and his son, Ee Meng, were fined a total of RM20 million for running a digital coin scheme without Bank Negara’s approval.

After that, Teow disappeared from the local scene and moved his MBI operations to Danok where he was still a free man until the Thai police arrested him in 2022.

Meanwhile, investors from China protested in Kuala Lumpur in 2019 and two years later filed a civil suit against Teow and his sons to recover RM170 million. According to reports, investors from China had put millions of ringgit into the scheme and the civil suit only involved a small group of them.

While investors from China claim that they had poured billions into the MBI scheme, it’s hard to fathom how such a huge amount of money got past the scrutiny of Bank Negara. This is because by 2017, the 1Malaysia Development Bhd (1MDB) scandal was already a stain on Bank Negara’s track record.

Following the 1MDB scandal, the central bank tightened the screws on suspicious transactions involving big inflows of money. So how did MBI’s millions or even billions of ringgit get past Bank Negara?

Coming back to the police investigation, the probe has extended to individuals in the corporate world and property development. They are mostly from Penang and Kedah.

Even before MBI collapsed in 2018, its money was in some property developments and listed companies. Among the listed companies then were Atta Global Group Bhd and Heng Huat Resources Bhd. Both companies are now under a new set of shareholders and have changed their names.

MBI’s money was mostly evident in the property sector, particularly in Penang and Kedah. In Penang, MBI was closely related to Ivory Properties Group Bhd (KL:IVORY). Teow and his family are investors in two of Ivory’s major projects — the development of Penang Times Square and Penang World City.

Ivory sold its interest in Penang World City to a company that is substantially controlled by members of the Teow family in 2018.

Two weeks ago, a corporate figure who is a substantial shareholder of three listed companies and holds significant equity interest in at least eight other listed companies is said to have been questioned in relation to the MBI investigation. News of his questioning sent the share price of his companies tumbling.

Another individual, a property developer who is a key player in two mega projects that started after 2011 in Penang and Kedah, is also said to be under probe. The Penang mega project is ongoing and supposed to be an iconic achievement under the DAP state government.

In the wake of the police investigation, Penang Chief Minister Chow Koon Yeow has distanced the state administration from MBI.

MBI buckled in 2018 and seven years have passed. The money would probably have changed hands many times. Will the current investigation have the desired effect? Will the investors get back their money?

M Shanmugam (m.shanmugam@bizedge.com) is a contributing editor at The Edge

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