The owners of the Facebook livestreaming outfit Vanity Closet evaded GST payments and freight charges in import declarations. The law caught up with them

Rayson Loo Sian Hao and Wang Siew Cheng during a livestream on Facebook last night. Screen shot: vanitycloset/YouTube

On their boisterous livestream, they are known as Ah Le (啊乐) and Rochelle. In real life, they are husband and wife Rayson Loo Sian Hao (吕先豪) and Wang Siew Cheng (黄小箐), the ebullient owners and operators of Vanity Closet (they pronounce it as Vanity Klor-Set), a Facebook page that sells all manner of merchandise via the interactive retail medium of livestreams. Both made the news yesterday for falling afoul of the customs laws of our city. According to news reports, Mr Loo, who is the manager of the four-year-old Vanity Closet (VC) and Ms Wang, who is the director, had “ fraudulently evaded” about S$91,915 in goods and services tax (GST) using false values of the goods declared and also left out freight charges of about S$4,172 in import declarations, according to Singapore Customs in a statement released to our media two days ago.

Much like the stints celebrity-run Mdada embarked on at one time and the personal shopping getai star/fishmonger/livestreamer Wang Lei (王雷) had offered, Vanity Closet provide a sourcing service of sort, with Mr Loo and Ms Wang going abroad to seek “branded” merchandise that can be sold back here at an inexplicably low price. They have been to the UK, Europe, and Asia, but it was, according to them, their first trip to the US in 2021 that led them into trouble. Singapore Customs further elaborated: “In January 2022, Customs conducted checks on Vanity Closet’s shipments imported in 2021 and found discrepancies between the actual values of the goods and the values declared to Customs.” It is not clear where the shipment had arrived from. Or what led to the investigation by Singapore Customs.

Much like the services celebrity-run Mdada provided at one time and the personal shopping getai star/fishmonger/livestreamer Wang Lei had offered, Vanity Closet’s Mr Loo and Ms Wang go abroad to source for merchandise to sell back here at an inexplicably low price

The couple each took a guilty plea to 11 charges of fraudulent evasion of GST that amounted to S$67,810. For that, Mr Loo was fined S$453,000 and Ms Wang S$396,000, totalling a whopping S$849,000. It was reported that another 13 charges of fraudulent evasion of GST amounting to about S$24,105, as well as 25 charges of causing incorrect declarations to be made, by not including the freight charges amounting to about S$4,172 in the import declarations, were taken into consideration. The total number of charges were, by no means, small. The Loos are not the first to be fined for evading paying full amounts of GST. Back in 2015, Today reported that “nine online retailers were fined between S$4,500 and S$133,000 last year for evading GST payments by submitting fake invoices or under-declaring the value of goods on their import declarations.” It’s an old stratagem.

Yesterday evening, after the news broke, Vanity Closet announced on Facebook that there would be “a special live session” at 9pm. As it turned out, both Ah Le and Rochelle appeared on screen “to give you guys an explanation”, as Ah Le said. It was clear from the start that they were to address what had appeared in the news. CNA’s headline at 7.13pm read: “Couple behind livestreaming retailer fined for evading GST on branded goods”. Ah Le was the first to speak—“Today is the life I need to address… I need to give you guys an explanation”, but did not approach the topic head-on. And said nothing about the “evasion”. He rambled and digressed and then said, again,“I still need to address to everyone I disappointed.” Before an explanation could proceed, he called it “a mistake, a genuine mistake I have done.” He stressed everything is “settled after three years… finally concluded yesterday” and went on to say that he made a mistake, again.

“Branded goods”, according to Singapore Customs, that investigating officers found at the Vanity Closest office-cum-warehouse. Photo: Singapore Customs

He, the “youngest in the family who 读书很差 (dushu hencha, bad academically)”, was then apologetic towards his parents, his brothers (two, older), his wife (a year older), his staff, “and everyone who has supported me”. And more—“to every single viewer here”. He kept repeating that he “made a mistake—definitely a mistake”, but did not say what the mistake was and how he got himself into the mess. Then he spoke of the couple’s trip to America, saying, “We never went to USA before, we don’t know how it works.” What “it” was remained unclear. Ah Le was beginning to sound like a Singlish-speaking Donald Trump. He clearly had not considered carefully what he wanted to say, jumping to new thoughts before finishing his previous. These tangents, coupled by his love for “anyways” as others love “actually” did not come to what most viewers probably tuned in to hear. Fifteen minutes into the livestream, he had not broached the subject that he had gone before the camera to speak about.

Then, he switched, saying, in a brightened livestream voice, he would give viewers a tour of the warehouse and that the stocks were in for Tory Burch and Ferragamo, but not for Burberry because some of them were still in Italy. He then assured his viewers that “everything is still the same”. Was he serious when he repeatedly said “sorry”? Then between whimpers, he went on about his family once more, how he had not been able to say sorry to his mother face to face (could the present be considered so?) and that his older brother had taken him fishing during his primary 6 years. It was becoming tedious to follow. Then finally, seemingly responding to a question messaged by a viewer, he blurted: “I imported the goods into Singapore… I never paid the 7% GST.”

Rochelle aka Wang Siew Cheng had her chance to speak her peace. Screen shot: vanitycloset/YouTube

But he could not go on or elaborate. He said that, at the time, his wife was pregnant and that “it is not an excuse”. Subsequently, some document was requested and then he “anyhow put a figure” and repeated “it is still a mistake. I am so sorry.” Responding to a viewer again, he reiterated, “it has been settled. Yesterday was concluded.” Later, he slipped in rather innocuously, “rushed out the stocks”, and that was basically the “explanation” he offered viewers after the strange rambling of regret. He did not say how it all amounted to that many charges handed to him and his wife. He attempted to shoulder everything alone, but the court did fine his wife too. He did eventually say, “Rochelle is also involved.” It is disconcerting that he could “anyhow put a figure” because it is tempting to ask if that was how he priced the goods too. The ‘anyhow‘ approach is ironic, considering that Ah Le formerly worked at DBS.

It’s also very odd that the couple, conducting business with the clear aim of bringing into our shores purchased goods in considerable quantity seemed unaware of the country’s customs requirements. Or that, while they claimed to have hardworking staff they cared for, there was not an accountant who could put in the necessary measures to ensure that proper documentation with correct values of goods being brought into the city can be filed, assuming both did not know how or was unable to do, as Ah Le seemed to have implied, due to situations that were not favourable to him at the time, such as his wife’s pregnancy. There was also mention of a miscarriage. As we said, it was bewildering. Rochelle appeared to be of rather weak constitution, if we consider how often Vanity Closet postponed their livestreams because, as they shared, “sorry guys, Rochelle is feeling very unwell”, usually followed by reasons pertaining to how labour-intensive her work was—such as “after 4 days of rushing billing and packing”.

It is very odd that the couple conducting business with the clear aim to bring into our shores purchased goods seemed unaware of the country’s customs requirements

It was time for Rochelle “to speak the remaining things”. She seemed poised to state her peace, after taking a swig from a massive red water bottle, but her recount seemed different from her husband’s. She started by saying that her WhatsApp account was “flooded” with messages, and most of them were “actually encouraging” although Ah Le did earlier point to negative comments they received. “A lot of people where shocked that actually the whole process took three years,” she went on. It is understandable that the case they found themselves in was long-drawn. But the need to repeat the point soon wore thin. “For the past three years,” she uttered again, “I think Ah Le and I been through a lot.” She said that they have addressed the issue before, but viewers apparently felt that they did not relate “the full story”. Rather it was “bits and pieces”, which the latter “did not understand” and, as such, had “wasted their time”. That was when they stopped talking about it. The irony is, in the present livestream, change there was not. She then claimed that they were “not avoiding” and were ”facing it very bravely” because “for the pass three years, it’s never, never, never easy for us”.

And then, she slipped in the pity card. She recounted what led to the discovery of the GST discrepancies. Again, the fateful American trip was brought up: “… because in USA, it’s never easy, because time difference, we need to travel, we need to drive, we need to pack, we need to do a lot of things.” Life in the good ’ol US of A, it seemed, was miserable. Then they took “a twenty-hour flight back to Singapore—something I can remember for the rest of my life because…” As she went on, the “remaining things” took on a very personal turn. She started talking about her son, who was, at the time of the couple’s returning from that first trip to the US, “only six months old”. To dramatise the consequence of going away from a very young child, she said, near crying, “he was in my tummy for ten months, but I left him alone in Singapore when he is (sic) only four months old.” She did not say why she had to be separated from her child. When the aircraft landed, “Ah Le and I is (sic) the first to leave the plane.” She told her husband, “I couldn’t take it anymore. I need to go back home ASAP to see my baby.” What all that had to do with “anyhow put a figure” , she did not say.

Then it was back to selling. Screen shot: vanitycloset/Facebook

That urgency and desperation were prelude to their problems with the Singapore Customs. According to Rochelle, after collecting their luggage, they came to the customs clearance lane, which she clearly described: “something to declare and nothing to declare”, but did not say which they chose. They were then stopped by an investigating officer—“that’s where we start (sic) our investigation”. She continued, eyes now visibly red: “After 20 hours of flight from USA back to Singapore, we go through a (sic) thirteen hours of interview, statement taking.” Again, what that had to do with “anyhow put a figure”, she elaborated not. She then curiously asked, “Is it easy?” And replied immediately, “it’s very, very tough. Mentally, physically, it’s very tough.” By now, it was rather obvious that she was not going to expand on or clarify what her husband had said inadequately earlier, let alone the minutiae of the case. She was not going to share why she, too, was found guilty and paid the fine.

The “bit and pieces”, still remaining, were not assembled into a whole. But she made sure that the pity card was now more discernible. She said, “sometimes when I explain to Ah Le how a mommy miss the baby is very hard for him to understand.” Did that lack of understanding lead him to under declare the value of the products both bought? “But I think,” she continued, “you guys know it feels like to have that baby in your tummy for 10 months and leave him at fourth month.” The rest was about regrets, pain, expensive lessons, family support, and how she and Ah Le “pushed through it together”. She then said: “the only thing that I can think positively is that the news can bring awareness… Not everybody knows about the GST law, even Ah Le and I.” In one broad sweep, her seeming ignorance (or “anyhow”, depending on who you believe) was also our collective benightedness. Rochelle claimed that she is “someone who is not good at talking”, unlike her husband’s more gung-ho garrulousness. One’s ability to sell is not synonymous with one’s ability to communicate. After she concluded her chat, A Le said, “Thanks, Rochelle, for supporting my mistake,” perhaps confirming that she was complicit?

And then it was back to the selling.

Happy husband and wife before the start of 16 October livestream to explain what the press published about them earlier in the day

The story of Vanity Closet, from a seller of cosmetics to a business large enough to require evading GST payment, is a rather fascinating one. Vanity Closet went live on the second last day of 2019 (VC’s birthday was, however, set for 11 January 2020), seven years after the couple met. Mr Rayson Loo had said that it was his wife Wang Siew Cheng who started the now private limited business. The first product sold on Facebook was a S$10 press powder. It was not conducted via livestreaming, but through a textual post with the product description, sans marketing copy. There was not even an accompanying photograph of the item. At the time, the creeping presence of one virus that will cause a pandemic was not even given an official name, yet. After the first post, they sold another single item: a “Mushroom Head BB Cushion Cream” for S$14 a piece. A video-on-loop of a woman (possibly Ms Wang), applying the makeup with questionable success, accompanied the post.

Vanity Closet did not start livestreaming until a month later. At the time, the livestreams were hosted only by Ms Wang in what could be her residence. She sold different items, from eyebrow pencil to glittery maneki-neko (Japanese good-luck cats) to automatic umbrellas to day dresses. It is not known where she acquired her merchandise. Her first overseas buying trip was to Bangkok in March 2020, just three months after Vanity Closet sold that pressed powder. She continued to peddle clothing, much of them no different from what could be found in Love, Bonito. Soon, Vanity Closet turned into a pantry. They started selling food items, from durians to CNY cookies to cans of abalone. In July 2020, Ms Wang even hosted a live cooking show. Later, when they upgraded to “branded goods’, familiar names—from Gentlewoman to Coach to Moschino—started to enliven their livestreams. The couple’s first overseas trip that required more than 16 hours of travelling time was to the US in 2021, seven days before National Day. It turned out to be one that would dramatically change their lives.

Vanity Closet turned into a pantry. They started selling food items. Ms Wang even hosted a live cooking show

For many of their customers, who are called “Vanities”, Ah Le and Rochelle’s appeal is in their heartland charm. Their energy is reminiscent of days when pasir malams on our shores were livelier. On their livestreams, they always seem so chummy, personable, spontaneous, goofy. If the appeal of live shopping lies in the personality of the hosts, the Loos do not have to try too hard. They speak the lingo of their customers (even Ah Le’s frequent “lady and gentlemen”, despite his wife saying most viewers are women, is considered “charming”); they jape around in the manner that is well appreciated (sniff leather bags and moo together); their pronunciations are not atas—‘co-lay-gen’, for example; they dress in the way considered “typical” of the style adopted here; and, perhaps, more importantly, they share their customers’ simple, brand name-desiring tastes; and what they sell won’t be out of place , even when you use it while, as Ms Wang enthused, “buy bak chor mee (肉脞面, rou cuo mian)”!

Like many businesses of their ilk, prompt deliver has been an issue with Vanity Closet. In one post in September, 2020, they wrote “we always emphasize on our services and experience that each customers has, while purchasing from our channel/live. However, understand that the delay in parcel delivery has caused extreme frustrations in the customer’s experience. Rochelle and admin would like to apologize for every delayed parcel. Please do be patient with us.” (There is no indication if a typical waiting period of between four to six weeks for the product to arrive is good experience.) Despite such hiccups, which seem common among livestream retailers, especially those that sell “branded good”, the industry has such low barriers to entry that they commensurate with the common saying “anyone can do it.”.

Perhaps, it does not require any particular knowledge to sell via livestreaming, not even about a city’s customs regulations. Or familiarity with the product or the ability to accurately describe it. Wang Siew Cheng, seemingly the resident fashion expert, sell with aplomb what she considers details her customers would scramble for. During last night’s protracted session (over two-and-a-half hours long), she sold Burberry products with delightful descriptions: She extolled the quality of the bags’ “calfskin ladder” and called the pockets in them “compartments”; two same tops, but in black and white, “are different kind”, the Burberry tartan is “like signature monogram”, or the brand’s pullover’s “knitted material is stretchy one”. Not to be outdone, Rayson Loo said, “我讲的 language leh (the language I speak), international approve (sic) leh.” If Sunnyside Up hasn’t ended, their scriptwriters should really follow Vanity Closet.

Note: all quotes are verbatim

Erratum: we incorrectly stated that Vanity Closet is a sole proprietorship. They have changed their status and are now a private limited company, registered under Vanity Closet SG