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Abstract

Singapore is a culturally diverse country made of numerous ethnic groups with different traditions, religions, and customs. Understanding the impact of culture in Singapore will help small, business owners and major corporations maneuver through its dynamic and diverse business arena. This paper will explore the major elements of culture in Singapore and break down those essential components to help U.S. business leaders adapt to the Singaporean multicultural business environment. This evaluation of the Singaporean business market will help identify Singapore’s strengths, weaknesses, opportunities, and threats (a SWOT analysis), which will help inform future business ventures. Culture influences many aspects of how people function daily, and it is imperative to understand the people of a country when operating a business internationally. Drawing on findings of how culture influences the Singaporean business market, this paper provides general recommendations to inform business leaders and help foreign companies navigate the international business scene in this region.

Keywords: Culture, business, adaptations, SWOT, foreign direct investment

Global Business Cultural Analysis: Singapore

As with all countries, culture influences international business in Singapore and includes implications and considerations for U.S. and foreign firms to considering business in Singapore. Singapore has business opportunities that can be good or bad, and to understand the any business environment, one first needs to know the people and cultural construct of the region. To conduct or pursue business opportunities afar, understanding the driving forces culturally will help business leaders and businesspeople adapt and seize all opportunities globally.

Major Elements and Dimensions of Culture in This Region

Cultural makeup is displayed through a society’s communications, religion, customs and manners, education, and governmental organizations. Culture is essentially a collection of learned behaviors, religious beliefs, values, and practiced customs passed down from generation to generation (Balsmeier & Heck, 1994). Thus, understanding the history of a region will help businesspeople better comprehend its cultural environment. Singapore is culturally diverse, and by understanding the various elements of Singaporean culture and history, business leaders will be able to navigate better the international business scene.

History and Demographics

Singapore, located in Southeast Asia, is home to a wide variety of ethnic groups. Singapore has a total population of 5,567,301 (July 2014), which is 76.8% Chinese, 13.9% Malay, 7.9% Indian, and 1.4% various ethnic groups (Colgan, 2016). The modern establishment of Singapore happened in the early 1800s as a British trading post colony. Then in the mid-1900s, Japanese soldiers gained control over Singapore, but three years later (1945), the Allies liberated the island. By 1955, Singapore had a provisional government, and, by the end of 1971, the British military presence in Singapore ended. Singapore developed quickly. It became one of the founding members of the Association of Southeast Asian Nations (ASEAN) and has become one of the top five busiest ports in the world today (Colgan, 2016). Even this overview of history demonstrates its importance in understanding country’s culture.

Dimensions of Culture

Satterlee (2009) categorized the dimensions of culture as communication (verbal and nonverbal), religion, ethics, values, manners, customs, social structures, and education (p. 43). Global business leaders must respect cultural practices of the country in which they are doing business. Increasing cultural awareness will lead to more fluid and natural business arrangements and negotiations.

Communication

Communication is essential when conducting business in multilingual countries, and understanding verbal and nonverbal forms of communication, such as gestures, manners, and body language, are just as important as speaking the country’s main dialects. According to Schmidt, Conaway, Easton, and Wardrope (2007), “We operate in a world that demands integration of intercultural communication skills and international business competence” (p. 12). Forms of communication can vary from verbal to nonverbal, and by understanding the differences in communication styles and deliveries, business managers can help mitigate misunderstandings and barriers to communication and lead successful business ventures in Singapore.

Verbal. Satterlee (2009) defined verbal communication as involving “the actual speaking of words” (p. 44). The national language in Singapore is Malay, but most Singaporeans are bilingual or speak multiple languages due to the various ethnic groups that make up the region, including the main groups of Chinese, Malay, and Indian. The most prominently spoken languages in Singapore are Chinese, Malay, English, and Tamil. According to Youngblood-Coleman (2010), “English is the language that unites various ethnic groups in multicultural Singapore. Nevertheless, a desire to retain cultural roots and traditions means that the different ethnic groups do still speak their respective languages at home” (para. 5). Many of the primary languages in Singapore include various forms of the Chinese and Indian languages. Verbal communication in Singapore depends heavily on the ethnic group to which a person belongs.