Cultural Analysis of Singapore
Arguably one of the youngest nations, Singapore has been identified as one among the emergent markets as far as foreign investors are concerned. For this reason, many corporations are headed to Singapore amidst the globalization craze. While this is the case, it is exceptionally important to comprehend the culture of Singapore. Considering the main key determinants, Singapore performs as follows:
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Speaking of culture, Singapore has been recognized as a boiling pot of cultures, thanks to its rich immigrant history. For this reason, the nation is multilingual, with the primary languages being English, Mandarin Chinese, Malay language and Indian languages (Lasserre & Schütte, 2005). Additionally, there is a Singapore dialect of English referred to as Singlish. Singapore is associated with the culture of meritocracy. Under this system, anyone that is deemed to be the best or the brightest is given opportunity and encouraged to reach full potential, irrespective of their religion, race or color. Education is held in high regard in Singapore. For this reason, primary education is compulsory for children between 7 and 12 years old. Religiously speaking, the nation is a secular one, with the main religions being Christianity, Buddhism and Islam. Even so, such ancient religions as Taoism are given room in Singapore. The government of the nation emphasizes immense respect for people and their religions (Leppert, 1996). This keeps discrimination on the low. In upholding harmony, the people of Singapore observe the Racial Harmony Day every 21st day of the month of July every year. Democracy, peace justice, equality and progress are given prominence as stars in the national official flag.
The Opportunities and Challenges of Doing Business in Singapore
Whether or not a nation poses more threats than the opportunities it offers greatly depends on the cultural practices and economic conditions of the nation. Below is an outline of the primary opportunities and threats in the Singaporean context.
The Opportunities
Stability - In the 2010 World Bank report on doing business, Singapore was mentioned as the number one nation as far as ease of doing business is concerned. Additionally, Singapore is credited as the country with the least incidences of corruption in Asia, and the fourth corrupt free nation in the world (Yu & Thorson, 2010). Current research indicates that Singapore is the leading nation as far as cross-border employment and trade are concerned, thanks to the open immigration policy. All these features describe a stable business environment.
Western technology meets eastern culture - As mentioned, the main cultures in Singapore are Indian, Chinese, Malaysian and British. The coexistence of such peoples creates a wonderful blend of western technology and eastern cultures. When such factors come together, the faults of socialism and extremes of capitalism are eliminated, creating a perfect business environment (Wee 2000). With western technology, an organization will be efficient. On the other hand, the people oriented eastern cultures make management of human resources exceptionally easy.
High purchasing power - With a GDP per capita of 50,300 dollars, the average Singaporean is considerably strong in terms of purchasing power. This assures the prospective investors that they will get ready market in Singapore. High purchasing power differentiates a viable market and one not worth the risk of investment.
Favorable taxation – currently, the corporation tax is at a flat rate of 17%. This is so low compared to the punitive rates in other countries of Singapore’s cadre (Yu & Thorson, 2010). The personal or individual Tax rates start as low as 3.5% going up to 20%. Low taxation implies low costs of production.
Skilled labor – Singapore is among the Asian countries prominently associated with reliance on scientific management. Following the nation’s education policies and strict systems, skilled labor is available in plenty. For instance, one out of three adults in Singapore is a person from a broad seeking to be employed in the nation. The immigration policies, coupled with the education strengths of Singapore assures investors of ready labor.
The Challenges
Relationships in business – unlike the western cultures, Singapore and most Chinese dominated nations believe in what is commonly referred to as Guanxi Culture. This refers to the practice of incorporating social relationships such as family friendships into business. Essentially therefore, prior to signing a contract, the parties have to meet over several dinners and home visits before forming business links (Yu & Thorson, 2010). This may be quite challenging to the western investors who are used to the individualistic society.
Principles of harmony – much like China, Singaporean people prioritize group interests over individual interests. As such, they give prominence to such groups as family. This is particularly limiting in terms of business, since the Singaporean people sign deals with family businesses. Penetrating such connections is impossible at times.
Lack of common identity – cultural diversity can be strength as well as a great challenge (Velayutham, 2007). Planning, in a society with one cultural identity is quite easy. For instance, if McDonald’s was to venture into an Islamic nation, they would be certain that pork products are not welcome in such a society. This way, they will not stock pork products. On the contrary, a multicultural society can be confusing as the investor will not know what amount of a commodity they should stock.
References
Lasserre, P., & Schütte, H. (2005). Strategies for Asia Pacific: Building the business in Asia.
Leppert, P. A. (1996). Doing business with Singapore. Fremont, Calif: Jain Publ.
Velayutham, S. (2007). Responding to globalization: Nation, culture and identity in Singapore. Singapore: Institute of Southeast Asian Studies.
Wee, C. L. (2000). Capitalism and ethnicity: creating 'local' culture in Singapore. Inter-Asia Cultural Studies, 1(1), 129-143.
Yu, C. A. V. Y., & Thorson, A. (2010). A legal guide to doing business in the Asia-Pacific. Chicago: American Bar Association, Section of International Law.
