08/09/2026
Chinese authorities arrested 52 Singaporeans in Guangxi’s Nanning for suspected pyramid scheme or multi-level marketing (MLM) offences. Detention for investigations before prosecution could take several months.
Ministry of Home Affairs stressed that “Singapore Government does not interfere in the judicial process and investigations of other countries, just as we expect foreign governments to respect our laws and legal process.”
𝐈𝐦𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬 𝐚𝐧𝐝 𝐥𝐞𝐬𝐬𝐨𝐧𝐬 𝐥𝐞𝐚𝐫𝐧𝐞𝐝
𝟏) 𝐈𝐠𝐧𝐨𝐫𝐚𝐧𝐜𝐞 𝐨𝐟 𝐭𝐡𝐞 𝐥𝐚𝐰 𝐞𝐱𝐜𝐮𝐬𝐞𝐬 𝐧𝐨 𝐨𝐧𝐞
In Singapore, the Multi-Level Marketing and Pyramid Selling (Prohibition) Act was passed in 1973. Offenders face a fine of up to $200,000, imprisonment for up to 5 years, or both. From 2002, an Exclusion Order provided an exemption for licensed insurance companies, master franchise schemes and direct selling with products rather than recruitment.
In China, pyramid scheme activities is an offence. Punishment is a fine and jail for up to five years. For schemes with 120 or more participants, or funds exceeding RMB2.5 million (S$470,000), the penalty is a fine and at least five years’ imprisonment.
Above all, the two countries have totally different legal systems. Singapore follows English common law and the presumption of innocence until proven guilty. On the other hand, China practices socialist statutory civil law that emphasizes confessions, pleading guilty and accepting punishment. Confession rate is as high as 95%. After all, conviction rate (percentage of accused people found guilty) is close to 100%.
On a separate note, unlike Changi Prison, there is no nutritionist to design four different types of meals for prison inmates in China. You can find out conditions of prisons there in youtube videos.
𝟐) 𝐇𝐞𝐚𝐯𝐲 𝐜𝐫𝐚𝐜𝐤𝐝𝐨𝐰𝐧 𝐰𝐢𝐭𝐡 𝐧𝐨 𝐞𝐱𝐜𝐞𝐩𝐭𝐢𝐨𝐧 𝐟𝐨𝐫 𝐟𝐨𝐫𝐞𝐢𝐠𝐧𝐞𝐫𝐬
These 52 Singaporeans were caught “untimely” at the wrong place and at the wrong time. They committed the crime in China amid a heavy nationwide crackdown of pyramid schemes.
Between 2021 and 2025, the authorities investigated 200,000 cases of pyramid schemes and direct selling violations. There are also several high-profile enforcement operations across China in the past two years, including Chengdu in Sichuan Province, Xi’an in Shaanxi Province, and this time, Nanning in Guangxi Zhuang Autonomous Region.
Worst still, prosecution of the 52 Singaporeans can be used as a perfect example to show the rest of the world that China’s laws apply equally to locals and foreigners. Think Michael Fay, the American teenager who was canned and jailed in Singapore in 1994 even after former US President Bill Clinton intervened to request clemency.
𝟑) 𝐖𝐡𝐲 𝐂𝐡𝐢𝐧𝐞𝐬𝐞 𝐜𝐫𝐢𝐦𝐢𝐧𝐚𝐥𝐬 𝐠𝐨 𝐚𝐛𝐫𝐨𝐚𝐝 𝐚𝐧𝐝 𝐫𝐞𝐜𝐫𝐮𝐢𝐭 𝐟𝐨𝐫𝐞𝐢𝐠𝐧𝐞𝐫𝐬
In recent years, advanced technologies in China have made it very difficult to break the laws. For one, it is impossible not to leave digital footprints when everyone is using mobile payments (WeChat or Alipay), GPS navigation, ride hailing and online shopping platforms. Likewise, state-of-the-art surveillance cameras, facial recognition and vehicle tracking make hiding almost impossible.
The police are incredibly efficient. Locals will tell you that any valuable lost can definitely be found. Even the streets are remarkably clean.
Criminals have no choice but to find a living overseas. Thus, it is common to see in-flight thieves, house burglars and money launderers from China reported in the Singapore media. Not to mention the notorious criminal syndicates operating scam centers in Myanmar and Cambodia.
Locals know that the authorities are clamping down on the "1040 Sunshine Project". They dare not engage in MLM activities. That is why the pyramid scheme looked outside the country to recruit in Southeast Asian countries like Singapore.
𝟒) 𝐖𝐡𝐲 𝐒𝐢𝐧𝐠𝐚𝐩𝐨𝐫𝐞𝐚𝐧𝐬 𝐚𝐫𝐞 𝐞𝐚𝐬𝐲 𝐭𝐚𝐫𝐠𝐞𝐭
Surprisingly, a Singapore recruit said she paid $900 for a round-trip ticket. Another paid $500 to rent a 2,000 sq ft apartment. With living expenses much cheaper than Singapore, fellow Singaporeans convinced her to live there. (Anyone told her that Singaporeans can only stay in China for up to 30 days per visit?)
Of course everything is cheap. Nanning is just a tier-two city. Its GDP ranks 49th among all Chinese cities.
Did they know that there are over 50 ghost cities in China? The pyramid scheme is so cheapskate to make Singaporean recruits stay in an abandoned development. At least they should pay for the air ticket and 5-star hotel. Nanning Marriott only costs under S$100 per night in Nanning's shopping district.
Most Singaporeans know nothing much about China. Firstly, not many master Chinese. They can’t possibly read online local news and discussions about what is really happening in the country.
Also, many think Singapore is expensive, especially for retirement. The grass is always greener on the other side. But they forget the safety, stability and protection Singapore provides for residents.
𝐅𝐨𝐨𝐝 𝐟𝐨𝐫 𝐭𝐡𝐨𝐮𝐠𝐡𝐭
A Singapore recruit said the presence of several Singapore “social media influencers, their partners and a former chief operating officer of a popular Singapore restaurant chain” gave her the impression that “the programme was established and credible”.
This tactic works well on people who have no individual judgement and look up to someone “knowledgeable” for guidance and reassurance. They can easily fall for an eloquent speech or an impressive presentation. They are easily convinced by the look of success, fame, educational background or social status.
Singaporeans are gullible. They are trained to follow rules and seldom question “authorities”. There is a tendency of them to believe everything others told them, without verifying the source or validating the facts. They are easily sold on the marketer’s “big idea”. They end up in danger or lose their hard-earned money.
Swindlers in many countries know this. Whenever I was overseas and the locals asked which country I come from, I often say China, Hong Kong or Taiwan.
I just want to stay out of trouble.
