Background To Business in Singapore

Singapore:
Singapore is probably the most heavily Western influenced of all the Asian economies with regard to
approach to business. The legacy of its colonial past, combined with its status as the number one
destination for US and European organisations to locate their Asian Head Offices has resulted in
many Western attitudes and processes being adopted. This apparent willingness to assimilate some
Western business practices does not, however, preclude Singapore from being a thoroughly Asian
City State. Scratch the surface and many of the inherent beliefs and practices reflect the mainly
Confucian ethics of the majority Chinese population.
Indeed the Singaporean government, which is known for its pragmatic approach to governing,
places tremendous importance on the maintenance and promotion of what it views as being solidly
Asian virtues. Thus, the excesses of western liberalism (including totally inclusive democracy) are
expensive luxuries which should be resisted in order to further the corporate good of Singapore Inc.
This autocratic style (redolent of Confucian thought) has resulted in tremendous economic benefits
for the country, as well as the social benefits of low rates of crime and lack of poverty.
It is this constant balancing act between benefiting from Western-style business practices, whilst at
the same time holding on fervently to traditional Asian values, which is at the heart of the fascination
of Singapore and which will be analysed further in the rest of this piece.
Do not be fooled by the veneer of Anglo-Saxon business ethics - relationships still come very firmly
before business and, therefore, as in the whole of Asia it is imperative to understand the necessity of
relationship-building and maintenance.

There are many languages spoken in Singapore. The reason is that Singapore has a multi-racial
society. The Singapore government recognises four official languages: English, Malay, Mandarin,
and Tamil. The national language is Malay, while English is mainly used as the business and working
language. The colloquial patois spoken on the streets is a creole called Singlish amongst the locals,
but is also known amongst academics in linguistics as Singapore Colloquial English.

http://www.worldbusinessculture.com/Singaporean-Business-Style.html

Singaporean Business Structures

Singapore:
As in all Asian countries, organisational structures tend toward the hierarchical. Many Singaporean
companies originated as family-run businesses and this adds weight to the push for respect for
seniority. The CEO of a family business will tend to be the oldest male family member working at the
organisation with other senior employees also being family members. (Obviously these family ties
and influences are not a factor when dealing with MNC's working out of Singapore.)
Thus, within traditional Singaporean organisations, all key decisions will be made at the very senior
levels, with those decisions being delegated down the chain of command for implementation. It is not
expected that the middle tier will openly disagree with senior management, as this would infer lack of
respect. It is, therefore, important to ensure the right level of contact within an organisation if
influence is to be brought to bear on the decision-making process. It is also important to ensure that
senior people are dealt with by contacts of similar status. Do not insult by sending in more junior,
younger staff than are introduced to you.
Outside the traditional, family-run Singaporean organisation, a whole host of structural approaches
can be found - especially in the MNC world and Singaporeans have proved particularly adept at
adapting to these differing models. It is often advisable to do some in-depth research prior to
interfacing with a company in Singapore in order to find out exactly what type of beast you will be
dealing with and thus be able to plan your approach accordingly.

Singaporean Management Style

Singapore:
As befits a hierarchical structure, managers tend to be older which in itself lends them an air of
authority. As in the rest of Asia, age still implies wisdom and people will be more comfortable dealing
with an older manager than a young 'wizz-kid'. Managers delegate decisions to their teams and
expect the decisions to be overtly respected. This does not mean, however, that the rational behind
the decision is never debated - it is merely that any dissension is likely to be aired in a more private
manner than in the full plenum of an open meeting. (This, again, may not hold true when dealing into
a Singapore-based MNC.)
As in all basically Confucian business cultures, the manager expects to be respected and obeyed
and in return for loyalty and dedication to the cause will show a much more holistic interest in the
well being of his team. This includes an almost paternal regard for many aspects of a subordinate's
life. The manager's relationship with the team does not necessarily finish at the end of the working
day.
Outside family ties, promotion will be based on merit and performance criteria rather than

connections. The performance criteria may, however, differ from those in the West and top of the list
may be the ability to create a harmonious team in which people feel at ease.

Singaporean Meetings
Singapore:
It is important that meetings should remain as harmonious and non-confrontational as possible, with
due regard being given to the preservation of 'face'. Thus, it could be very detrimental to the longterm health of any business relationship should a meeting descend into recriminations or openly
expressed frustrations. Bear in mind that the quality of the relationship is the key determinant of a
successful and mutually fruitful partnership. (Although, once again, when dealing with Western
educated Singaporeans working with MNC's, it is possible to encounter US style frankness.)
The focus of any meeting should be on co-operation and the preservation of harmony. Therefore, it
is often a good idea to let any sticking points drop, returning to them later through another approach
or even saving them for later in the negotiation process when further progress has been made and
the relationship further strengthened.
Respect should be given to the hierarchy during the meeting, which includes thoughtful pauses prior
to answering questions posed by senior managers. Do not leave your junior members to deal with
their senior team whilst you attend to something more important! Punctuality is crucial, as lateness
implies a lack of respect.
The use of coded and diplomatic language can make meetings seem inconclusive and confusing,
with many items seemingly left hanging in the air. It is important to have a good understanding of
Singaporean communication patterns.
Gift Giving
The government has introduced very tight legislation governing the issues around gift giving wishing to avoid the corruption scandals which have tainted other Asian societies in the past. It is,
therefore, less common for gifts to be given and received in Singapore than in many other countries
in the region.
It is possibly better to give one gift to the group as a whole, but if individual gifts are to be given they
should be merely tokens (pens with corporate logos etc.) As with other Asian countries, gifts should
be wrapped and are unlikely to be opened in front of the giver.

Singaporean Teams
Singapore:
Basically group oriented, Singaporeans make highly effective team players if the team environment
engendered promotes the harmonious interaction of individuals rather than a competitive approach.
A good team leader will strive hard to develop an atmosphere of consensus-style decision making
within the team in which individual members are shielded from the possibility of 'losing face'.

Decisions are team ones and therefore success or failure is also team oriented.

Due to the consensual nature of team decisions, external agents can sometimes feel frustration at
the lack of progress. It is difficult to speed along this process from the outside and any seeming
interference could be resented, leading to even slower movement.

Singaporean Communication Styles

Singapore:
Due to the diverse ethnic mix in Singapore, there are four languages in common usage - Malay,
Mandarin Chinese, Tamil and English. English is widely used as the 'common' language because of
its apparent neutrality as well as its importance in the international business arena. Many
Singaporean schools run the curriculum in English. Therefore, levels of English are extremely good
in Singapore and foreign business people who also have a good command of the English language
will have little difficulty communicating.
However, good communication and mutual comprehension often require more than a common
language and many misunderstandings flow from differing concepts of the appropriate or
inappropriate use of language.
As in many Asian cultures, 'no' is a difficult word and other ways of expressing disagreement should
be sought. Disagreement can affect the harmony of the situation as well as possibly making
somebody lose face and needs to be avoided. Vagueness and substitutions are often used to avoid
disagreement. Thus 'no' becomes, 'Yes, but it might be difficult' and 'yes' might merely imply 'I have
understood your point.' It is therefore important that everything, which is said, is not taken literally.
Ask lots of open questions and go over important points several times. However, should your
probing reveal a flaw in the logic of an argument or an actual mistake, try not to point it out in public.
Be aware of the 'face' of the other side.
Humour can often be misunderstood or not understood at all and as such is best avoided. It is better
to underplay your personal merits, majoring rather on the merits of your organisation or department.
Conversation about deeply personal issues should be avoided, as should comments about the
Singaporean 'system'.

Women in Business in Singapore

Singapore:
In comparison with many other Asian countries, women have made tremendous advances in the
business arena over the past decade and female executives now hold many senior positions.

Women in business are expected to keep a very professional, almost distant relationship with male
colleagues and this should be respected. Eye contact should be minimal and proper distances
observed.

Foreign executives going to work in Singapore will be given the respect due to their rank and
professional standing.

Singaporean Dress Code

Singapore:
Due to its position on the equator, Singapore is hot and humid all year round. Dress codes in
business reflect the climatic conditions and tend to be more informal than in many Western countries
or even other Asian countries such as Japan and Korea.
Thus men will often wear shirt and trousers with no tie (jackets are not usually worn.) Colours can be
lighter than the dark blues and greys of the UK and Japan.
Women tend to wear lightweight business suits. Accessories should be of good quality but not overly
ostentatious

Singapore:
Tip 1
Singapore is probably the most heavily Western-influenced of all the major Asian economies
and, as such, presents a sometimes confusing mix of solidly traditional Asian values and
ultra modern business techniques.
Tip 2
Singapore is an eclectic mix of ethnic Chinese, Malays, Indians and global expatriates and is
therefore difficult to categorise. What is true of the ethnic Chinese approach may be very
different in an Indian-oriented company or the regional headquarters of a major MNC.
Tip 3
Business structures tend towards the hierarchical with decisions made at the top by senior
management before being cascaded down the chain.
Tip 4

It is unusual for people to display open disagreement with a decision made. Any debate
would be held in private.
Tip 5
Ensure that people of a similar status deal with senior people. Do not show disrespect by
expecting them to deal with younger, more junior colleagues.
Tip 6
Age is respected and managers tend to be older. As with all Asian countries, age brings
automatic respect and it is more difficult for younger people to interface as equals at senior
management level.
Tip 7
Managers expect and receive respect. In return for that respect they take a holistic interest in
the all-round well being of subordinates.
Tip 8
Performance determines promotion within an organisation - except within family firms where
family bonds are strongly felt.
Tip 9
Harmony is sought in meeting situations and everything should be done to promote and
maintain that harmony.
Tip 10
Remember the importance of safeguarding 'face'. Relationships are the key in Singapore
and relationships become difficult if people have lost face.
ingapore:
Tip 11
Maintain respect for the hierarchy of the delegation at all times. Do not belittle the arguments
of the manager in front of his or her team.
Tip 12
Remember that diplomatic and coded language is the norm and that what is said is not what
is necessarily meant. Try to look for the meaning beneath the actual words. If in doubt return
to the issue later.
Tip 13
Teams work on a consensus decision-making basis, which can be lengthy and frustrating.
Patience is definitely a virtue in these situations.
Tip 14

English language levels are almost universally high with much of Singaporean education
being conducted in English. In addition, many Singaporeans complete their education in the
U.K., U.S.A. or Australia.
Tip 15
'No' does not always mean 'no' and 'yes' may merely be an indication of comprehension.
Always try to explore beneath the surface level as to what may actually be meant.
Tip 16
Humour, although appreciated in social situations, can be confusing and undermining in a
more serious business context.
Tip 17
Gift giving is less prevalent in Singapore than in most other Asian countries and gifts should
be modest in nature to avoid any whiff of corruption.
Tip 18
Women play an active and senior role in business life and will be found in most functions of
an organisation. Overseas women will be dealt with on their merit.
Tip 19
Dress codes are less formal than in many other countries with jackets and ties being used in
only the most formal of situations.
Tip 20
Be aware of any potential sensitivities around dealing with Malay Muslims - avoid pork,
alcohol etc.

Successful Entertaining in Singapore

Singapore:
Business entertaining is very important in Singapore and don't be surprised if business dinners are
scheduled for every night of the week. (Dinner is the most common form of business entertainment,
but lunches are often given as well) Consider these events as a time to socialize and build
relationships rather than discuss business. Most entertainment is done in restaurants - it would be
fairly unusual to be invited to someone's home.
It is customary to allow the host to order all the dishes, after which the food is usually put on the
table with all dishes served at once and to be shared by all. Pre-meal drinks and appetizers are
uncommon, though they are commonly available in Western restaurants.
The Chinese will use chopsticks for most food and spoons for the soup. Western style utensils will
usually be available if you are unused to the use of chopsticks. When using chopsticks, never leave
then sticking upright in the rice bowl. When not in use they should be placed on the table, resting on
the chopstick rest. (Setting them on your plate means you are not finished).

It is polite to leave some food on your plate finishing everything could imply that you have not
been served enough and are still hungry.
Malays and Indians use a spoon along with their hands to eat. Never use your left hand to eat which
is considered to be unclean. If given a spoon and fork, hold the spoon in your right hand and use
your fork in your left hand to push food onto the spoon.
Tipping is a far less common practice in Singapore than in many other countries. If the bill does not
include a service charge (very unusual), leave a tip of around 10%.