SINGAPORE: When Michelle (not her real name) accepted an invitation earlier this year to learn about a business opportunity linked to the Chinese city of Nanning, she believed this was a chance to join what appeared to be an exclusive investment venture. However, she has since started to have doubts about the scheme and is trying to recover more than S$75,000 (US$59,200) that was invested.Michelle was introduced to the programme earlier this year. She was facing challenges in her job and had become curious when a long-time friend, Evelyn (also not her real name), told her she was “doing business” while travelling frequently.Evelyn invited her to find out more and to join her on one of her trips.
In a few weeks, Michelle was on a flight from Singapore to Nanning, capital of Guangxi in China’s south.Over five days, she attended meetings and presentations by fellow Singaporeans, before being formally invited to join what organisers described as a business opportunity linked to Nanning’s development.To participate, she bought "shares”. This allowed her to earn commissions by recruiting two others into the programme.Michelle and another member she recruited eventually transferred S$75,000 to Evelyn’s Singapore bank account.But she said she started to feel concerned when she was not offered a receipt of this transaction.Neither was she given a copy of an earlier expression of interest agreement that she had signed in Nanning.Commissions which Michelle said she was promised after recruiting another person have also yet to materialise.Today, she is trying to recover what was invested. All attempts to get answers from Evelyn have failed, with questions either side-stepped or ignored.On Friday (Sep 4), Singapore’s Ministry of Foreign Affairs said that 52 Singaporeans have been arrested in China for suspected involvement in an alleged pyramid scheme.CNA understands that the scheme is linked to the 1040 sunshine project – a long-running pyramid scheme which Chinese authorities have clamped down on previously.The modus operandi is similar to what was experienced by Michelle, as well as at least a dozen Singaporeans that CNA has interviewed, although not all ended up investing.It is unclear how many Singaporeans have been approached or remain involved. But many of those interviewed said they knew others who were part of the scheme. Those interviewed ranged from professionals in finance and business to retirees, and three of them have filed police reports.The Singapore Police Force (SPF) confirmed that it has received reports of people promoting schemes that appear similar to what Chinese authorities are investigating."SPF has contacted the Chinese authorities to obtain relevant information to ascertain if there is any connection between the ongoing investigations by the Chinese authorities and the reported activities in Singapore," the police said in response to CNA's queries. "SPF will render assistance when the Chinese authorities provide relevant information, within the ambit of Singapore's domestic laws."THE SINGAPORE MEETINGSThrough CNA's interviews, it appears that the recruitment process has remained largely unchanged for more than a decade.Most of the experiences start with casual conversations with new contacts or mutual friends about broad investment opportunities in China or Nanning.These usually take place at professional or networking events, and even social gatherings organised by existing members of the programme.Interviewees told CNA that many who attended appeared successful or had interesting anecdotes about their lives.CNA went undercover recently at one such session in central Singapore.The two-hour gathering was attended by a group of around 10 people.Conversations started innocuously, mostly centred on participants’ backgrounds, retirement plans and hobbies. Some were meeting each other for the first time.When a guest brought up interest in investing in China, an individual identified to CNA as being part of the programme began talking up the potential of Guangxi, especially Nanning.The pitch was premised on several factors including: the high involvement of Singaporeans and Singapore companies in developing the city, the local government's enthusiasm for foreign funds, Nanning's rapid growth, and vast future potential.Such a narrative featured prominently in every interview that CNA conducted for this story.CNA also witnessed current members exchanging contacts with guests and suggesting follow-up meetings at a “more appropriate setting”, to find out more.A potential trip to China in the future was also floated by the organiser, although he said this would likely not happen in the next few months due to the bad weather conditions in Nanning.Several interviewees later told CNA that it was at the smaller follow-up meetings that they were introduced to business and investment opportunities specific to Nanning, even if these pitches did not go into the details of how the scheme worked.In January, Rob (not his real name), was asked out by his friend and a mutual acquaintance. He was between jobs at the time.Rob said the scheme was described to him as similar to how Singapore attracts global investors, except members run it “a little bit less obviously.”Another interviewee, Alfred (not his real name), was told that it was an exclusive, invitation-only opportunity for overseas ethnically Chinese people, and that it was linked to Nanning’s development.“I was told Nanning was being positioned for major growth, with references to ASEAN integration, a Nanning–Singapore corridor, and the Belt and Road Initiative,” said Alfred.
