Riding the China wave: Singaporean recruits describe how they fell for the Guangxi scheme

Singaporeans were lured into a long-running investment scheme in China, enticed by promises of cheap luxury living and a piece of the Guangxi economic boom. One Singaporean public servant, referred to as Alice, recounted her experience after a friend pitched the opportunity as a chance to ride the China wave. Alice was taken on a five-day trip to Nanning in Guangxi in March, where she was constantly accompanied and not allowed to leave the car.

She was subjected to mandatory sales sessions in a CCTV-monitored condominium unit, where recruiters promised potential investors could recoup their money by recruiting others. Each new participant was said to be worth around S$10,000 (RM31,900), with participants required to pay between S$26,000 and S$50,000 (RM83,000 and RM159,600) for the investment, though the exact purpose of the funds was unclear.

Alice eventually paid S$70 (RM223) as a "promise fee" after feeling pressured by the environment. The scheme, linked to the 1040 Sunshine Project, is described as a Ponzi operation where money from newer participants pays earlier ones. Other Singaporeans interviewed echoed similar accounts of recruitment trips beginning in 2014, with claims Nanning would become the "next Shenzhen" and attract major tourism and investment.

The case came to light after Singapore authorities detained 52 Singaporeans in Guangxi over suspected involvement in pyramid scheme activities. Singapore's Ministry of Foreign Affairs has warned citizens to be cautious about schemes involving recruitment, hefty upfront payments, or unusually high returns.