Global Business Cultural Analysis: Singapore

Global Business Cultural Analysis: Singapore

Shineka Haskins

Liberty University

BUSI 604

6 July 2014

Abstract

 The country of Singapore is quickly becoming a global powerhouse because of its status as one of the world’s major commercial hubs, which is mainly due to the accelerated economic growth in the service sector and the adaptation of several e-commerce initiatives.  In 1998, the initiation of the Electronic Commerce Plan spurred growth and increased Singapore’s position as an international hub through the utilization of e-commerce.  Fast forward to 2014, it is known as Asia’s most network-ready country and the best business environment in Asia Pacific as well as in the world.  Singapore has grown to become the top 3 in the world for foreign trade and investment because of their strong e-commerce industries.  This global business cultural analysis attempts to examine the various cultural perspectives of Singapore and how those perspectives influence how Singaporean organizations conduct business locally as well as with other countries on a global scale.  The survey of various research articles reveals a widespread support of the cultural perspectives but also suggest a need for further continuous research due to its importance and complexity.  

Introduction

Have you ever cringed at the price of gas, kept your dwelling warm with the convenience of a heat pump, or enjoyed some amazing barbeque cooked on a propane grill?  If you have then you are among millions of Americans blessed to utilize refined petroleum exported from Singapore by way of crude oil from the Middle East, West Africa, or Asia.  Singapore is an island located in southeastern Asia between Malaysia and Indonesia and made up of a highly diverse population.

Singapore is one of the world’s major commercial hubs, due to the accelerated economic growth due to the service sector, as well as the adaptation of e-commerce initiatives.  According to Anwar and Yin (2008), Singapore‘s “increased economic prosperity contributes to increased demand for services” (p. 23).   Additionally, the rise of tourism in Singapore is a direct correlation of that demand for services.  

This global business cultural analysis considers how various cultural identities within Singapore presented are effective as well as influential in their position not only in the local economy but globally by responding to the following:

1. What are the major cultural elements and dimensions in Singapore?

2. How are these elements and dimensions integrated by locals conducting business in Singapore?

3.  How are Singapore’s cultural dimensions and elements compared to the United States and business?

4.  What are the implications for US businesses wishing to conduct business in Singapore? 

Understanding how important a nation’s cultural perspectives and its influence on business dealings highlights the intricacy of global economy and emphasizes the need for complementary expertise of researchers, leaders, and teachers, to search for solutions and information.

What are the major cultural elements and dimensions in Singapore?

Cultural elements and dimensions are a combination of core beliefs within a person that helps them prioritize not only their personal lives but their professional lives as well.  They can help mold organizations by providing a sense of direction and setting a foundation through the establishment of various values and beliefs (Low, 2011, p. 12).  The major cultural elements and dimensions in Singapore are communication, religion, ethics, values and attitudes, as well as social structures.  

Communication

        Human interaction through verbal and/or nonverbal language is an activity that can be taken for granted.  This is particularly true when the interaction is complex or difficult due to the inability to comprehend the message being relayed (Yuxian, 2013, p. 50).  Singapore is a conglomeration of nationalities, which has been assisted due to the influx of various foreigners, so communication between the inhabitants can become a slight problem. The Chinese culture makes up most of the population (74.1%), followed by Malay (13.4%) and Indian (9.2%) cultures.  Only 3.3% of Singapore’s residents identify themselves as “Others” (Tan, 2012, p. 449).  

Languages.  English, Chinese (Mandarin), Malay, and Tamil are the four main languages spoken in Singapore.  There is also the use of an unofficial colloquial form of Singapore English “Singlish” spoken among the inhabitants (Alsagoff, 2010, p. 337).  A high level of importance is placed on language.  Students from various linguistic backgrounds are not only taught English as but their home tongue as well.  Additional information on each language is provided in the following paragraph.

English is the preferable language when residents are involved in business dealings or politics.  Chinese (Mandarin) is the most commonly spoken language in the home due to the vast population composition in Singapore.  Malay is the language spoken among the indigenous Singaporeans and is also the language of Singapore’s national anthem.  Tamil is the language spoken among the Indian culture.  Singlish is used as an informal approach to help bridge those communication gaps between the different ethnic groups and is based the English language with elements from Chinese, Malay, and Tamil (Vaish, 2008, p. 452).  Although the use of the English language is used to unite the different ethnic groups, other variations of communication can still become a conflict.

Different meanings of words across languages.  Even with a multiethnic population, Singaporeans manage to effectively communicate through the understanding of verbal tone/volume and nonverbal gestures.  Singaporeans believe that a composed demeanor is superior to being forceful; therefore they are soft spoken individuals. According to Yuxian (2013), speaking in a softer volume has the advantages of being easy to the ear as well as being in line with the norms of Singapore (p. 53).  Additionally, the tone or feeling behind a person’s voice as well as how various words are emphasized is extremely important because it shows a sign of respect.

        Nonverbal language is another form of communication that can be misconstrued between the multiethnic populations.  Singaporeans are a high context culture which means that they value body language over spoken language.  According to Satterlee (2010), a high context culture relies heavily on nonverbal and subtle situational cues in communication (p. 41).  Additionally, the meaning of the same body language could greatly vary in different cultures (Yuxian, 2013, p. 54)

Religion

Singapore is not only a multiethnic country but a multireligious nation as well.  According to Tan (2012), the major religions are Buddhists (33.3%), Christians (18.3%), Muslims (14.7%), and only 0.7% identify as “other” (p. 449).   Additional information on each religion is provided in the following paragraphs.