Historical Timeline

A critical way to show respect for another person's culture is to have knowledge of their country's history and current affairs. Table 12.1 on pages 264–265 outlines a few key events related to Singapore, together with concurrent world events.

Full Country Name and Location

The Republic of Singapore consists of the main island plus 63 smaller islets. It is separated from the southern tip of the Malay Peninsula by the Johor Straits and Indonesia's Riau Islands by the Singapore Strait. It has no land borders, but part of its 193 miles of coastline is connected to Malaysia by a causeway and bridge, offering road and rail access. At 697 square kilometers, Singapore is slightly smaller than Bahrain (765 square kilometers) and almost four times the size of the U.S. capital, Washington, D.C. (177 square kilometers).

Government/Political Structure

Singapore is a parliamentary republic with a president voted in as head of state and a prime minister selected by parliamentary majority (as in the U.K.) as the head of government. Elections for the unicameral legislature are held every six years, most recently in May, 2011, when the People's Action Party (PAP) took just over 60 percent of the votes. The next presidential and legislative elections are scheduled for 2017. Voting is compulsory for eligible citizens. Nonvoters are struck off the electoral register and cannot stand as a candidate for presidential or parliamentary elections. Singapore is one of only three city-states in the world.

Population and Economic Centers

Singapore's total population is 5.5 million, of which just over 1.5 million are non-residents (June 2014 estimates).³ It is the second most densely populated country in the world after Monaco,⁴ and 100 percent of its population lives in urban areas.⁵

The main ethnic groups are Chinese (74.2 percent), Malay (13.3 percent), Indian (9.2 percent); the remainder (3.3 percent),⁶ includes Arabs, Jews, and Armenians.

The major business centers and populations (2014) are shown in Table 12.2 on page 267.⁷

Economy

Singapore ranks second in the world for foreign trade and investment, according to the Globalization Index 2012.⁸

Due to its historical geostrategic position, it has long been an entrepot trading center, meaning that goods can be imported and exported without incurring duties. The city-state's economic growth is driven by exports—mainly in manufacturing (principally biomedical, chemicals, and electronics); financial and insurance services; wholesale and retail; and transportation and storage sectors.

Singapore's mixed economy (free market combined with government intervention) is known as the Singapore Model. It's the only Asian country to be designated with an AAA credit rating by all three major agencies.⁹

Its biggest export partners are Malaysia, Hong Kong, China, and Indonesia, followed by the U.S., Japan, Australia, and South Korea.¹⁰

Singapore is ranked first out of 189 economies in terms of ease of doing business according to the World Bank Group's Doing Business 2015 report.¹¹ Its 2013 GDP was ranked 36th by the World Bank¹² and the composition of its GDP by sector was services (70.6 percent) and industry (29.4 percent).¹³

Corruption Perceptions Index

Singapore ranked 5th least corrupt out of 177 countries and territories with a score of 86 out of 100.¹⁴ This annual index, compiled by Transparency International, measures perceived levels of public sector corruption.

The Corrupt Practices Investigation Bureau is the anti-corruption agency that conducts investigations in Singapore.

Human Development Index

Singapore ranked 9th out of 187 countries and territories.¹⁵ The HDI, compiled by the United Nations Development Programme, is a composite index of life expectancy, education, and income statistics.

Global Gender Gap Index

Singapore ranked 59th out of 142 countries in terms of gender equality with a score of 0.7046.¹⁶ This annual index, compiled by the World Economic Forum, assesses gender gaps based on economic, political, educational, and health-based criteria.

Climate

Positioned 137 kilometers (approximately 85 miles) north of the Equator, Singapore experiences a year-round tropical climate. Temperatures remain consistently high (75-85 degrees during the day, 70-80 degrees at night), with high humidity and frequent rain. The island's average annual precipitation is 95 inches and rain is said to fall somewhere on the island every day of the year.

There are two monsoon periods: December to March, and June to September.

Languages

Singapore has four official languages, reflecting the diversity of the population: Mandarin Chinese (36.3 percent); English (29.8 percent); Tamil (4.4 percent); and Malay (1.2 percent). Other languages spoken are: Hokkien (8.1 percent); Cantonese (4.1 percent); Teochew (3.2 percent); and other Chinese dialects (2.8 percent).

English, which is widely spoken, is the language of business and government, and is used for instruction in schools and by the media. Singaporean students are encouraged to learn at least one of the other official languages.

The Singapore government promotes the use of Mandarin and seeks to stamp out the prevalence of what is called Singlish, a mix of English, Chinese, and Malay.¹⁷

Belief Systems, Philosophies, and Religions

The country breakdown is as follows: Buddhist (33.9 percent), Islam (14.3 percent), Taoist (11.3 percent), Catholic (7.1 percent), Hindu (5.2 percent), Other Christian (11.0 percent), None (16.4 percent), Other (0.7 percent).¹⁸

For an overview of belief systems, philosophies, and religions, please refer to Chapter 4, pages 64–65.

Time Zones/Daylight Savings

Singapore has a single time zone, Singapore Time (SGT). To calculate time in Singapore, add eight hours to GMT/UTC. It does not operate under Daylight Savings.

It is 13 hours ahead of U.S. Eastern Standard Time (12 hours ahead in Daylight Savings Time).

For more information, see www.timeanddate.com/worldclock.

Telephone Country Code and Internet Suffix

The Singaporean telephone country code is 65 and the Internet suffix is .sg.

Currency

The currency in Singapore is the Singapore Dollar (SGD). One dollar is divided into 100 cents.

Fiscal Year

The Singaporean fiscal years runs from April 1 through March 31. Dates are written as day, month, year; for example, April 1, 2020 would be written 01/04/2020.

Working Week

The structure of the typical Singaporean working week is outlined in Table 12.3.

Holidays and Festivals

Some Singapore holidays are determined by the lunar calendar and change from year to year. On some holidays, offices may remain open with limited staff. Check with your embassy or trade office before planning business travel. Common Singaporean holidays and festivals appear in Table 12.4. Floating holidays are designated with an asterisk.

Business Dress/Appearance

Clothing of lightweight material is common among Singaporean business people. Men wear dress shirts, ties, and trousers for business meetings and at restaurants. Jackets are suggested for more formal initial meetings and meetings with government officials. On most occasions, women wear modest pantsuits or skirts and blouses with sleeves. Pay attention to cultural nuances concerning modesty when doing business with different ethnicities.

News Sources

Common news sources in Singapore include:

• The Straits Times: www.straitstimes.com
• Business Times: www.businesstimes.com.sg
• Today: www.todayonline.com

Business Cards

When exchanging business cards in Singapore, offer your card with both hands and with the print facing the recipient. It's acceptable for information on the card to be in English, as it is the language of business. During a meeting, business professionals may arrange cards on the table in front of them in order to remember names and titles. Avoid taking a business card without looking at it properly first; when possible, ask questions or make a reference to the information given.

Technology

With both 3G and 4G networks available, Singapore enjoys excellent telecommunications services. Mobile population penetration rate stands at 152 percent, and household broadband penetration is 85 percent. A wireless broadband service with speeds of up to 2MBp can be accessed free with Wireless@SG. The government is close to completing an island-wide roll out of a high-speed fiber-optic broadband network.

According to Akamai Technology's State of the Internet Report, Singapore has the third-fastest average peak connection speed in the world, and the 20th-fastest average connection speed.²⁰ Latest figures rank Singapore 65th in the world for the number of Internet users,²¹ and 39th globally for the number of Internet hosts.²²

Gifts

Business-related gift-giving is not a common practice. See the respective chapters for Malaysia (Chapter 9), India (Chapter 7), and China (Chapter 5) gift-giving tips.

However, if you are invited to someone's home (such offers tend to be rare), by all means bring your hosts a small gift, as you would at home. The same applies if your host has been especially generous with their time, taking you on tours or for meals; giving your host a gift in appreciation would be seen as good manners.

Use both hands to present the recipient with your gift, but do not expect them to open it in your presence. Due to the ethnic diversity in Singapore, gift-giving customs vary. Do your research on culture specific customs.

Never give any gift, no matter how small, to government officials.

Introductions, Greetings, Personal Space, and Eye Contact

Err on the side of formality here. Especially at a first meeting, use the appropriate honorific before a person's name. Read the Malaysia, India, and China chapters for more culture-specific information. Watch what others do and follow their lead. Sometimes Singaporeans will bow as they shake your hand, and it is considered polite for you to do the same. This is especially true for those originating from China. With Singaporeans it is best to practice intermittent eye contact, making sure not to stare. Avoid touching or patting someone, as they are likely to see it as disrespectful.

Names

For the order of names, refer to the respective country chapters for China, India, and Malaysia.

Meetings and Negotiations

The tendency in Singapore is to get straight to business. Singaporeans are regarded as astute, honest, and highly skilled; as a result, they exercise precision in their business dealings and have high expectations of others. It is best to come prepared to the negotiating table, as Singaporeans are tough negotiators. They focus on costs and deadlines, are keen to make decisions quickly, and tend to hold to contracts more strictly than business professionals do elsewhere in Asia. Also, be mindful of demands for transparency by the Singaporean government, which may draw out the negotiation process.

Presentation Styles, Conversational Topics, and Humor

The protocol for giving presentations can vary depending on your audience. Ask in advance what the protocol is for your presentation, and always take the advice of someone who is known and trusted by the attendees.

If there is a Q&A session at the end of your presentation, precede your answers with a respectful silence. Although westerners often feel uncomfortable with silence, Asians can see it as appropriate or respectful. Responding too quickly to a question indicates that you haven't given it sufficient thought.

Because of their access to U.S. television and other programming, Singaporeans are familiar with western humor. Acceptable topics of conversation are food, travel, art, and the economy.

Gestures

Common gestures in Singapore include:

• Pointing with your thumb, not your index finger: making a fist with the thumb on top and point with the thumb (signs show this).
• smiling or laughing to hide embarrassment.
• Holding open doors, giving up a seat, and, when elders enter a room, rising.
• Bowing when passing people and when entering or leaving a room.

Notable Foods and Dishes

The Singaporean cuisine is truly a melting pot, influenced by a variety of cultures including Malay, Chinese, Indian, Indonesian, Thai, and English. These foreign cuisines are well represented in restaurants throughout Singapore and also in the unique blends of flavors and ingredients found in popular dishes.

Specialty Dishes

Favorite dishes in Singaporean cuisine include:

• Hainanese chicken rice: Considered a national dish; chicken steeped in broth, rice, cucumber, and a dipping sauce of chili, garlic, and soy
• Chili crab: Considered the national seafood dish; crabs stir-fried in a sweet-and-savory, chili-tomato sauce

Dining Etiquette

Due to the ethnic diversity in Singapore, it is best to follow the dining customs appropriate to the background of your host. See the respective chapters for Malaysia, China, and India.

Some general points to note: Food is a spiritual thing—never refuse an offer of food. In dining, chopsticks are commonly used, but Western-style utensils are usually also available. When dining with Malays or Indians, never use your left hand when eating or passing items. It is customary for the host to select and order all of the dishes for the group when dining at a restaurant.

Drinking and Toasting

For drinking and toasting customs, see the respective chapters for Malaysia, China, and India.

Beer and ale are the favorite drinks in Singapore, although wine and whisky are also popular.

Though toasting is not commonplace, Singaporeans generally stand to offer and receive a toast. The person giving the toast holds his/her glass with both hands and makes eye contact while speaking. The recipient holds his/her glass with the right hand and thanks the person who gave the toast.

Tipping and Bill-Paying

Tipping is not customary and is actively discouraged by the Singaporean government. Restaurants add a 10 percent service charge and 7 percent goods and services tax (GST) to the bill. Although it's not expected, rounding up a taxi fare to the nearest dollar is common.

Smoking

The Singaporean government has prohibited smoking in virtually all indoor places and in most public places, with the exception of designated smoking areas. Offenses are punishable by fines from $200 to $1,000 Singapore.²³

Taboos

Cultural taboos in Singapore include:

• Public displays of affection
• Touching someone on the head
• Pointing or facing the sole of your foot toward someone
• Pointing with your index finger
• Jaywalking
• Possessing, packing in a suitcase, or carrying chewing gum
• Smoking in public
• Littering or spitting

Heroes and sports

Knowing about another country's heroes and sports offers opportunities to incorporate culture-specific references into your conversations and presentations.

1. How Do Singaporeans Prefer to Act: Individually or as a Group?

My experience with people in Singapore is that they prefer to act as individuals first.

—Allan Smith, foreign exchange trader, GMC

Singaporeans love to have individual choice. Their early-bird mentality even has its own word, kiasu, which literally means ‘fear to lose.’ That said, this is a hierarchical and collectivist culture in which the government exerts considerable influence. The stringent laws and rules that apply to everyone ensure high efficiency and the almost nonexistent levels of corruption in the country—but they also govern behaviors ranging from smoking and littering to chewing gum and jaywalking, and they prevent Singaporeans from enjoying the freedom to criticize or joke about their government, as people do in the West.

As an example, consider the experience of one of our interviewees, a senior business development manager for a Fortune 500 manufacturer. Among all the Asian countries in which he operates, he found the value sell, selling a customer on value over price, the most difficult to make in Singapore:

“You have to create relationships with each person in the decision-making chain in a way that makes them all look successful. You might think an agreement has already been reached but then discover that their boss won't sign off unless you have something in reserve, such as an additional discount. Unlike many other Asian cultures, a Singaporean VP can be pretty aggressive and direct in telling you that he won't take the deal to his CEO unless there is something else you can put on the table.”

As one Singapore-based consultant told us, when it comes to establishing business relationships, in Singapore, you are “guilty until proven innocent”—meaning that each individual in a chain of command will want to be sure of you before granting you access to the next-highest person in the hierarchy.

The bottom line? You don't start at the top when building relationships in Singapore: You work your way up, one individual at a time.

2. How Are Power and Authority Viewed in Singapore?

This is a country that has a very high expectation of quality. Once Singaporeans regard you as someone they can potentially do business with, it settles on merit very quickly.

—Fermin Diez, human resources executive

Singapore is a meritocracy. It is also a highly network-based culture. What this means is that you have to earn your right to be part of the circle—you're an outsider until you prove yourself worthy of being an insider. According to Dr. Tanvi Gautam of Global People Tree, who has lived in Singapore for close to four years, Singaporeans judge others according to a number of status markers, which signal an individual's competence and credibility. One of the most salient is education, and graduate degrees are especially highly regarded. Others include a number of personal attributes, such as high integrity, as well as global connections with respected business organizations, including think tanks, institutes, and professional associations.

As Dr. Gautam explained, “You need to be mindful of the fact that Singapore runs largely on its human capital and services rather than agriculture or manufacturing products. And human capital is strongly based on social capital, which is all about networks. The people who succeed most in this country are boundary spanners. Demonstrating that you have strong connections with the global network matters in Singapore, as that signals your higher social capital.”

As an outsider, you can demonstrate added value in Singapore business circles by emphasizing your existing networks. As Dr. Gautam pointed out: “When you are talking to someone in Singapore it's never just about that person, you are talking to their entire network.”

3. How Do Singaporeans Compare Rules and Relationships?

The relative emphasis on people and processes in Singapore is illustrated by two disruptions that occurred a few years ago. Human resources executive Fermin Diez related two stories to us that were in the press. First, the country's largest bank, DBS, and its sister bank, POSB, endured a technical glitch that caused their ATMs to be out of service for seven hours. Customers were up in arms and CEO Piyush Gupta appeared on TV and radio to apologize. He also sent out a personal letter that has since been held up as an exemplar of excellent crisis management. Gupta remains the CEO.

The second incident occurred in late December of 2011, when Singapore rail operator SMRT shut down one of its subway lines twice within 36 hours because of damage that was said to be due to lack of maintenance. The service disruption affected almost 250,000 commuters. CEO Saw Phaik Hwa resigned the following month.

According to Mr. Diez, “Singaporeans are not used to things breaking down. But whereas the transport operator's initial reaction was to hunker down to fix the problem and made no public statements until it was seen as too late, the bank CEO made himself immediately available to the media and was hugely apologetic about the grief this disruption had caused his customers.”

Although both executives managed the problems in the way they thought right, the degree to which each CEO was forgiven by the public differed greatly. In the case of the bank, public perception was that the bank valued the relationship with their customers. This may well have been the case with the transport operator, also, but by largely ignoring the public outcry and by focusing instead on their maintenance issues, the transport operator left the public with a quite different perception. There is a lesson here for anyone conducting business in Singapore to put people and relationships ahead of processes and rules.

4. How Do Singaporeans Regard Time?

Singaporeans value time and don't like to waste it. They are punctual and honor time to the minute. To illustrate Singapore's attitudes about time and the ways these attitudes affect matters like developing trust, inspiring respect, and focusing on relationships, consider Dr. Tanvi Gautam's experiences during her first meeting with some Singaporean Chinese clients:

“A couple of months before I moved to the country I had arranged a meeting with a group of Singaporean businessmen. In my preliminary e-mail I had explained that we needed to have a hard stop at 7 p.m. and this was mutually agreed upon in advance. When the meeting took place we must have drunk about 16 cups of green tea and were chatting about everything under the sun other than business. And I'm looking at my watch thinking, ‘Okay it's now 6.30 p.m., then 6:40 p.m. Maybe they forgot my email to say we needed to stop at 7 p.m.' But I didn't want to be rude and just come out and say, ‘Can we stick to the agenda?’ Then, at five minutes to seven one of the businessmen turned to me and said the group would like us to work together.

“What I have learned since is that if you think you can come to Singapore to get a piece of paper signed and then walk out, it's not going to happen. It's going to take more time. Of course, even in Singapore you will find people whose viewpoint on time is governed more by a professional code than the cultural code. But either way you need to be prepared and realize that here people are interested in understanding who you are and want to get to know you before they enter into any long-term deals.”

5. How Direct Is Communication in Singapore?

Singaporeans are a little bit more thick-skinned than the others (Asians). You have to second guess the Japanese, right? With Singaporeans, if it's no, he will tell you it's no.

—Yu-Jin Chua, Panther Capital

When doing business in Singapore, then, a good approach is to think in terms of the culture of the people with whom you would be meeting. For example, lawyer Looi Teck Kheong pointed out how the Singaporean government effectively uses officials from each ethnic group to communicate and liaise: “It does not make sense to send a Chinese representative to communicate with the Indians, who have their own specific and unique Indian culture. So we had a minister that I believe was originally from the south of India, who was sent to handle things. The same approach is used with the Chinese, where a Chinese minister from a similar background will be engaged because they have a firm understanding of the Chinese culture. The same holds true for the Muslims, and we have what they call a Minister of Muslim Affairs.”

Mr. Kheong recommended that visiting businesspeople find out in advance the culture of origin of the people with whom they'll be working. Our advice is to review the other country chapters—China, Malaysia, and India—to familiarize yourself with the cultural nuances that play a part in all communications in Singapore.

Also, know that when a Singaporean prefaces communication with, “In my humble opinion,” or “In my modest opinion,” they are giving you a firm directive.

6. How Formal or Informal Do Business People in Singapore Tend to Be?

There is high regard for seniority and a certain code of conduct in Singapore, a culture in which restraint is considered to be a personal virtue. Although Mr. Looi Teck Kheong invited Liz to call him by his first name, he also pointed out that this was the exception rather than the norm. Holding a senior position within the law firm that bears his name, he finds that people in Singapore prefer to address him as Mr. Looi. Likewise, you should err on the side of formality and use a courtesy title or an honorific until invited otherwise.

On the one hand, Singapore's cosmopolitan nature makes visitors feel at home because road signs are in English and a rich mix of cultures is represented. On the other hand, as Mr. Yu-Jin Chua pointed out, this leads to the expectation that international visitors already understand the high standards to which Singaporeans naturally conform:

“Everyone should have read about Singapore or spoken with people who know the country well so that they know the formalities and ways of treating people that are expected. If someone demonstrates bad manners—like walking into a bar and saying, ‘Hey, baby, get me a table’ to the waitress, or who breaks the law by chewing gum in public, we don't consider them to be ignorant—we think they are doing it on purpose.”

7. How Aligned Are Singaporean Social and Business Lives?

As with other Asian countries, trust begins before you arrive in the country. This is why the formality emphasized in the previous section is important for e-mail, Skype, phone calls, and other preliminary communication.

As Mr. Yu-Jin Chua of Panther Capital pointed out: “If you go for a three-day business meeting elsewhere in Asia, there may be no business discussion on days one and two. On day three, perhaps even on the way to the airport, you will hear that the contract has been signed. In Singapore, if you have planned a three-day business trip it's likely that the job will be done on the very first day because Singaporeans will not invite you here unless there's business already. They will discuss specifics and get down to signing the deal right at the outset.”

Assuming your good reputation has preceded you, Singaporeans will definitely want to entertain you. But here, again, there are differences in approach. In Singapore, the home is sacrosanct. Space on the island is at a premium and Singaporeans, most of whom take their family obligations seriously, will either be rushing off after work to be with their partners and children or to look after their parents. Business entertaining, then, is more likely to take place over lunch than dinner.

You may find that you are taken to some of the many excellent places to eat in Singapore or offered a guided tour of the island. Most socializing of this kind takes place during the working day. As Mr. Chua added: “In Singapore, a lunch or maybe dinner, is the time when someone will ask questions that they wouldn't ask you in a group meeting because they don't want to say something ‘stupid’ that might make them look weaker than their colleagues. It's the time for informal discussions that they feel are less intimidating.”

8. How Is the Concept of Women in Business Handled in Singapore?

The women here that take on any position are there because they are good.

—Looi Teck Kheong, lawyer

According to Dr. Tanvi Gautam, “I have not experienced that being a woman has got in the way of anyone accepting my authority or credibility or competence. I think the professional space is available for women to do whatever they need to do. If women want to come to Singapore to set up a business, they will find it's as good, if not better, than a lot of other places when it comes to the professional respect and courtesy they expect. Gender is not the first filter with which you would be evaluated.”

While working at her company's foreign exchange trading office in Singapore, KPMG executive Ms. Elizabeth Hay always felt comfortable. Certainly there were differences to working in her native Australia, but nothing related to gender. “I always felt welcome when joining a group of Singaporean professionals for a meal or drinks after work, as we used to go out twice a week on a regular basis. Singaporeans are Western-minded and don't have any sort of complex speaking to western women. I'll always have good things to say about Singapore and still maintain solid friendships there with both men and women.”

Even so, a woman may be judged by her wardrobe—with respect to style. Dr. Gautam highlighted this by saying: “The Singaporean style of dressing in the workplace is quite unique and stylish, almost like dressing for a meeting in New York. In fact, I have never seen as many branded purses anywhere else in the world as I have in Singapore. They are always very much in line with the latest trends. Singaporeans enjoy their brands!”

International businesswomen are therefore advised to wear brand-name, high-fashion suits with designer shoes and leather bags.