Rationale for choosing Malaysia
Malaysia, apart from being a multi-cultural and pluralistic country, is a great tourism destination. The capital, Kuala Lumpur, is where every other tourist dreams of visiting. Thus, the main reason for choosing Malaysia for this study was due to personal reasons when visiting the country. As part of the major plan, visiting Malaysia during holiday and especially during honeymoon is the basis of this selection. Apart from the excitement of interacting with a mixture of cultures and religions, there will be a lot of learning during the tour. Hence, before visiting the country, it is crucial to conduct a cultural survey and delineate the business culture and the culture in general of the Malaysian people.
An analysis of the Malaysian culture
Culture is a variable element. No single factor can be used to describe the culture of a given population. Malaysia is a pluralistic and multi-cultural nation. Since long ago, the country has been a center of the interaction of a broad range of religions and culture. However, the interaction among cultures has created the Malay culture. It is nevertheless, important to note that a unique fusion of Indian, Chinese and Malay traditions represent the country. According to Malaysian Culture and Customs (n.d.), this is the main reason Malaysia qualifies as a pluralistic country. Malaysia has its character intensely rooted within the boundaries of religion, social harmony, and the country's ancestral background. In other words, Malaysia has a rich cultural heritage that requires business people to be aware of the relevant skills, behavior and knowledge of the traditions that characterize the environment in the country (Trompenaars, 1993).
The concept of fatalism defines the diverse religious values that the Malaysian culture centers on. Malaysian people value Isla, Hinduism, and Buddhism as their primary religion. Therefore, they believe that misfortunes, opportunities, success, and failures are outcomes of the will of God. Citizens receive guidance from subjective feelings integrated with their faith and not necessarily from hard facts. Another major factor characterizing the Malay culture is the concept of the face (Malaysia - Language, Culture, Customs and Etiquette, n.d.). To ‘lose face' implies that one has lost control of their emotions or has shown embarrassment in public, an aspect seen as a negative form of behavior. Therefore, in all their endeavors, they prefer ‘saving the face.' For instance, when one laughs, he masks his true feelings about something. These feelings include shyness, disapproval or nervousness.
Compared to Western culture, the Malaysian culture is high in a context such that meaning is less direct and often more explicit. In essence, words, to the Malaysians have little importance. Instead, attention is given to supplementary forms of communication including facial expressions, the tone of the voice, eye contact and the body language. Malaysians, as it will be seen later, believe in healthy relationships with each other. Rather than just exchanging ideas, Malaysians prefer establishing connections with each other that will be of mutual benefit (Trompenaars, 1993). More significantly, the Malaysian culture put emphasis on values relating to face, harmony, courtesy, and tolerance. The citizens will do everything they can to avoid disharmony, conflict, and disagreement in the society. For instance, providing a direct answer to somebody is avoided.
The Malay culture values peace in the society. Arguments and conflicts get resolved at the communal level and rather not at individual level. It means that Malaysians believe and embrace the theory of cultural relativism. Cultural relativism prevails on the notion that the self-preferences of a person cannot surpass the interests of the entire society. In other words, an endeavor that benefits the community is pursued rather than an endeavor that advantages and individual. Tradition is highly valued. Often, the citizens remind themselves of their high ancestral background through traditional events such as dance, games, (Batu Seremban and Takraw) singing, etc.
It is also common to find a plate of traditional meals such as Murukku, Popiah, and Karipap in both domestic and commercial domains (Malaysian Culture). Citizens are well-mannered and polite. In public, individuals are encouraged to remain happy and interact positively with their colleagues. According to Malaysia - Language, Culture, Customs and Etiquette (n.d.), when one meets with a fellow, they are required to smile and shake hands if they are both men. However, if a man meets with a woman, he is expected to nod simply or bow slightly with a smile on his face. If the woman gestures for a handshake, the man will shake their hands while smiling. The Malay culture is, therefore, a smiling culture.
Malaysian business culture
The entrepreneurial culture and environment in Malaysia portray the firm belief of social harmony, peace, and its traditional background. All companies in Malaysia get conducted in correspondence with the federal government. Unlike in Singapore, the official business language used is Malay Bahasa although English is primarily used due to globalization and internationalization of business. In Singapore, English is majorly used as the official business language. In Malaysia, business organizations follow the vertical hierarchy structure. As the discussion of Hofstede's dimensions will demonstrate, the business environment is characterized by a high power distance which implies that organizational structures are highly hierarchical. The business structure relates to the cultural value that the highest in rank or the older have to be respected and obeyed without question. In this case, the business owners have the power of autocracy and determine what the business does, how it is done and when it is done. Although organizations follow the hierarchical structure in Singapore, the Dimensions of National Culture (n.d.) acknowledge that it is not intense like that of Malaysia. The manager only does what the boss says. The employees, on the other hand, do what the director says. Despite the size of the enterprise, the vertical hierarchy has to be always maintained.
As noted earlier, Malaysians have substantial value for religion. Business activities go spared for religious activities. For instance, those who believe in Islamic faith do not open their shops on Fridays for prayer purposes. Business partners are always expected to uphold this value for religion (Girirl, 2009). It has also been noted that rather than belief in facts, Malaysian believes in subjective feelings integrated with their religious faith. Religion is thought to form the basis of successful business. In contrast, the Singaporean entrepreneurial culture is defined as a set of laws, institutions, rules, and beliefs that direct business conduct. In business, time is considered as a crucial factor. Malaysians believe in punctuality. Furthermore, just like Singaporeans, Malaysians have a relaxed attitude towards the future.
Girill (2009) notes that; the business culture in Malaysia also relates to an emphasis on job titles and job descriptions. Authority is significant in operations. The relationship between workers and their seniors remains distinct and official. Business organizations in the country have a collective responsibility for the welfare of the Malaysia society. Business operations are to be conducted within the boundaries of social harmony and peace. Conflict is disvalued in the enterprise operations. Firms have to establish a peaceful co-existence with each other (Malaysian Culture and Customs, n.d.). Similarly, business organizations in Singapore are required to embrace the spirit of national survival and intra-industry collaboration. However, management in Singapore is largely based on consultations, quality circles, and self-management groups unlike in Malaysia where the manager depends on set rules and what the business autocrat or the boss has to say about the ‘what,' ‘how' and ‘when' of business operations (Koh, 2009).
In business operations, business etiquette has to be always practiced. As noted earlier, shaking hands is a sign of good will and intentions. Thus, the seller and the buyer should shake hands before the transaction proceeds. It is a sign of respect which lays the foundation for trust and a strong business relationship. Malaysians believe that healthy business relationships are the basis for success. The first meeting with a customer or client will mark the start of a business relationship.
However, signing a contract from after the meeting does not mean signal the making of the final agreement. The agreement will mark the beginning of negotiations. After the meeting, business partners are expected to exchange business cards. In Singapore though, Koh (2009) notes that companies uphold mutual respect for each other and the client. Relationships in Singapore have to be established first before the transaction takes place.
Upon an establishment of the relationship, Singaporean businesses believe that the key focus will now be a successful operation or completion the business task at hand. Loyalty in Malaysian businesses is also valued highly (Girill, 2009). Workers have to remain loyal and devoted to their businesses and responsibilities. Commitment and determination qualify as the roadmap to business success. Before business operations can take a course in Malaysia, a client or a transacting party has to obtain mutual acquaintance with both the firm and the government. The client is also expected to present a letter of introduction from a bank. It is common, therefore, to find that Malaysian prefers doing business and transacting with familiar clients. On the other hand, according to Koh (2009), Singaporean firms mutually value and reinforce ascription and achievement in their operations. They believe that the success of transactions is not only for the business but the society and the nation at large.
Hofstede’s cultural dimensions
Power distance
Power distance refers to the extent to which members of the society accept or approve the unequal distribution of power. According to The Hofstede Center (n.d.), Malaysia has a very high power distance index (100). Individuals subscribe to Chinese Confucianism. Citizens have a syncretic approach to religion. They believe that society will be stable when unequal relationships exist. It is a common belief that the society has to hierarchical and that everybody has their place which does not need any further justification. There must be a mixture of powerful and less powerful, the rich and the power, the leaders and the followers.
Hierarchy in business organizations has to reflect inherent inequalities in the system. Finding centralization in the country is popular. Workers and subordinate expect guidance on what to do, and they have to do it without question (Pheng & Yuquan, 2002). Therefore, they do not have to challenge anything their leaders tell them as this is just part of the cultural heritage and not necessarily a rule imparted to the population. Foreign firms, therefore, have to comply with this power distance, acknowledging the need for inherent inequalities in the hierarchy. Apart from business organizations, other institutions within both the domestic and public spheres have to uphold this cultural heritage.
Individualism
According to Dr. Hofstede, (1984) individualism refers to the extent at which society maintains interdependence among its members. This dimension refers to the definition of a self-image regarding ‘I' and ‘We'. Malaysia has a relatively low individualism index (26) (The Hofstede Center, n.d.). The score value means that it is an extremely collectivistic society. Individuals in the country are committed to strong and close relationships within groups such as local communities, extended families, the families, peer groups, etc. In return, individuals have to be loyal to the society and the country (Pheng & Yuquan, 2002).
Foreign investors have to learn to take responsibility for others. The society believes in healthy relationships in which every person has responsibility for themselves and others. As noted earlier, offense will directly lead to the loss of face and shame in the society (Girill, 2009). Relationships between workers and their employers are perceived morally. Foreign companies have to uphold the fact that promotions and hiring in the firm should take into account the employees in the group. In other words, management takes the form of managing groups and not individuals. In particular, the concept of cultural relativism takes over operations. The interests of the society surpass self-interests of individual members.
Uncertainty avoidance
This dimension deals with how the society perceives the future. Societies which avoid uncertainties always try to reduce the probability of ambiguous situations by setting strict laws and rules and safety measures. Malaysia has a moderately low score on this dimension (36) (The Hofstede Center, n.d.). Individuals have a low preference for handling ambiguity. The country has maintained a more relaxed attitude. This way, practice is emphasized more than principles (Shah, 2012). If an individual deviated from the norm, the chances are that they will be tolerated. Malaysians believe that there should not be more rules than those that are necessary. Furthermore, if existing rules do not work or are ambiguous, they should be abolished, changed or eliminated from the system (The Hofstede Center, n.d.). In this culture, work schedules are flexible. For foreign companies intending to invest in Malaysia, this is one of the provisions to observe. Furthermore, the companies should learn to deal with the fact that hard work comes handy when necessary and not for its sake. More significantly, Shah (2012) agrees that innovation is not seen as threatening. Additionally, punctuality and precision never come naturally.
Masculinity
This dimension relates to what motivates the society: liking what you do (femininity) or wanting to be the best (masculinity). Malaysia has an intermediate score on this dimension (50) (The Hofstede Center, n.d.). The score value implies that is no clear distinction of how roles' distribution or how tasks are performed. It is hard to tell whether the society values quality for life or being the best. The culture has provisions for both quality of life and always striving to be above average; the provisions exist for the benefit of the whole society. As noted earlier, Malaysians love their country and believe that leading a quality life is crucial for survival (The Hofstede Center, n.d.). On the other hand, there is a supposition that it is impossible to achieve a quality life without striving to be the best when necessary. Therefore, to foreign businesses, it should be understood that Malaysian lies between the dimension of masculinity and that of femininity. Nevertheless, ensuring the quality of life and striving to be the best are standard practices.
Long-term Orientation
This dimension relates to the virtues of perseverance and thrift. In particular, it refers to how societies maintain some links with its past when dealing with both past and future challenges. Cultures which have a high score on this dimension encourage thrift and modern education as a means of preparing for the future. On the other hand, societies which score low on this dimension (normative societies) prefer to maintain time-honored traditions. Such a society view societal change with suspicion. According to The Hofstede Center, (n.d.) Malaysia scores 41 on this dimension meaning it is a normative society. Individuals are more considered with establishing the absolute truth. Furthermore, they have a strong respect for their traditions. On average, they have a small propensity to save for future purposes and more inclined to achieve quick results. However, this dimension is sometimes ignored when analyzing the culture of society.
Indulgence
This dimension refers to how societal members try to control their impulses and desires. Society is either indulgence or restraint. Relatively strong is called restraint and relatively weak is called indulgence. According to The Hofstede Center, (n.d.) Malaysia scores 57 on this dimension. People are willing to realize their impulses and desires. They are optimistic and have a positive attitude. They highly prefer leisure and act in a manner which they wish as well as spend how they wish. Just like the long-term orientation dimension, this dimension is rarely used in the cultural analysis of society.
Conclusion
Conclusively, Malaysia is one of the world’s most pluralistic and multi-cultural countries. The Malay culture is an amalgamation of the Chinese, Indian and Malay traditions. The country has a rich diversity and has its character rooted deeply in religion, cultural heritage and ancestral background of its people. The business environment has a strong allegiance to the Malay culture and is somewhat different from that of Singapore. Businesses have a set of societal standards which must be upheld at all times in all business contexts. For instance, strong and long-lasting relationships are emphasized in business. For foreign investors, the Hofstede’s dimensions are a good way to establish the best way to conduct business sin the country. The indices and scores discussed in each dimension should be sufficient enough to determine how well to enter and invest in Malaysia.
References
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Trompenaars, F. (1993). Riding the waves of culture: understanding cultural diversity in business. London: Economist Books.
