Issues in International Business

This report analyzes the unique cultural components of Singapore and evaluates its business culture in comparison to Myanmar. It explores the cultural analysis of Singapore, including its diverse influences and social etiquettes. The report also discusses the business culture of Myanmar and highlights the differences between the two countries. Additionally, it examines Hofstede's cultural dimensions model to understand the key considerations for operating effectively in Singapore.

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Issues in International Business

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Table of Contents
Introduction...............................................................................................................................2
Cultural Analysis.........................................................................................................................3
Unique Cultural Components.................................................................................................4
Business Culture of Myanmar....................................................................................................4
Difference between business culture of Myanmar and Singapore...........................................5
Hofstede’s Cultural Dimensions.................................................................................................7
Conclusion..................................................................................................................................9
References................................................................................................................................10

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Introduction
Each country has different cultural aspects which companies have to consider while
expanding their operations to ensure that they effectively expand their operations while
reducing legal consequences. In this report, Singapore is selected as the host country to
understand the culture of the country and its key insights. The rationale for selecting
Singapore is because I am fascinated by its culture and I wanted to work in the country after
completing my academic studies. I wanted to learn more about its culture and understand
how it is different from the culture of Myanmar which is my home country. This report will
analyse the unique cultural components of Singapore and evaluate its business culture to
understand how it is different from the business culture of Myanmar. Hofstede’s cultural
dimensions model will be used in this report to understand the key considerations which
companies have to take in order to operate effectively in Singapore.

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Cultural Analysis
Singapore is a small island in Southeast Asia which is known for its trade and
tourism; however, it has a strong economy, stable government and most importantly a
vibrant culture (Chew, 2017). The culture of the country consists of a combination of Asian
and European cultural factors. Singapore is often referred as a country where “East meets
West” because its culture is influenced by East Asian, Indian, South Asian, Eurasian and
Malay cultures. It is a cosmopolitan society in which individuals live harmoniously, and they
interact with different races (Hill & Lian, 2013). Although there are people from different
cultures in the country; however, people prefer to think of themselves as Singaporeans
regardless of their culture or race. The country remained as a British colony for a period of
150 years, and it gained its independence in 1965 after which it was separated from
Malaysia, and it became a new country called Singapore. It covers a total area of 644.5
square kilometres in which 637.5 square kilometres is land whereas the remaining 10
square kilometres is water (Nations Encyclopaedia, 2019). In Singapore’s culture, the
government is stable, and it is a bureaucratic and extremely centralised system which has
adopted a socialist approach. Singapore has a close family culture because both father and
mother take care of their children who live with them until their marriage.
Singapore is a secular immigrant nation in which main religions include Buddhism,
Christianity, Islam, and Hinduism. The government heavily emphasises on providing equal
respect to all religions and personal beliefs. Monogamy (having only one wife) is a general
rule in Singapore which is followed by most individuals; however, many people also exercise
polygamy (having more than one wife) that is from Muslim Malay (Kong, 2012). In the past
few decades, the divorce rate in Singapore is quickly increasing, and the average age of first
marriage has increased. Singapore’s culture supports education due to which the country
has high literacy rate, and it has established a strong education system as the country has
become one of the most prominent education hubs in Asia. Maintaining social etiquettes is
common in the country, and the government imposes heavy fine or jail time if people
engage in practices such as jaywalking, drinking and driving, spitting, littering, taking drugs,
public drunkenness, dancing on counters, smoking indoors or chewing gum (Kong, 2017).

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While visiting holy places or temples, people have to take off their shoes, wash their hands
and feet, dress appropriately and take pictures only if it is permissible.
Unique Cultural Components
Following are various unique cultural components in Singapore that affect people and
companies in the country.
 While entering into the house, people have to take off their shoes just as they enter
any temple or mosque.
 Younger people have to call elders "aunty" and "uncle" to give them respect even if
they are not related to each other (Chew, 2017).
 Smoking regulations in Singapore are very complicated which confuses locals as well
as tourists. Smoking is prohibited in most public places in the country such as
markets, hospital, bridges, and even within 5 meters of a bus store.
 Tipping is a common practice in many nations; however, it is unnecessary and even
frowned upon in Singapore. In the country, businesses charge 7 percent Goods and
Services Tax and 10 percent Service charge from customers, and the waiters also
receive a salary per hour based on which people did not need to tip them
(Henderson, Yun, Poon & Biwei, 2012).
Business Culture of Myanmar
The business culture of Singapore invites and supports foreign investments in the
country because there are no import duties on 99 percent of the total imports in the
country (Mackie, 2018). However, doing business in Singapore can be tricky for new
businesses because there are a large number of social rules and protocols which they have
to abide if they did not want to offend their business partners. For example, they have to
comply with the unwritten code of exchanging business cards while doing the business
because it is not a simple necessity; instead, people have to follow the rituals surrounding
this exchange. (Li, 2018) Firstly, they begin by giving a brief introduction in the beginning
after which they present the card with both hands rather than one hand to show respect to
the person. The name written in the card must face the business partner. After receiving a

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business card, it is important that the person must take a few moments to examine the card
to show respect to the person who is giving the card.
Moreover, preparation before business is a key factor in the culture of Singapore
because people did not like to waste their time while doing business and they prefer to get
to the point quickly while taking business decisions. If the partners come to the meeting
unprepared, then other parties can be offended. Singaporeans are punctual when it comes
to business appointments, and they expect the same with others as well (Henderson, Yun,
Poon & Biwei, 2012). People did not prefer to meet during breakfast and lunch is the
preferable meal for business discussions. Alcohol or pork is not served while eating with
Muslim business partners; similarly, most Indians do not eat beef. English is a common
business language in Singapore while the official language is Chinese, Malay, and Tamil
(Chew, 2017). Gifts are not common in businesses transactions and giving gifts can be
treated as a sign of bribery in Singapore’s business culture. In some special occasions, gifts
are given to partners that must be given with both hands. When it comes to government
officials, giving gift is not a common practice.
Difference between business culture of Myanmar and Singapore
The culture of Myanmar, also known as Burma, is heavily influenced by Buddhism
and the Mon people. In recent times, the culture is also influenced by British colonial rule
and westernisation which brought major changes relating to language and education in the
country (Aung-Thwin & Aung-Thwin, 2013). On the other hand, Singapore has a multi-ethnic
society which comprises people from countries such as China, Malay, India, and Eurasian
communities; the majority of the population in the country is Singaporean Chinese. There
are many similarities and difference between the business culture of Myanmar and
Singapore which companies have to understand while taking business decisions (Kong,
2012). For example, business cards are a big deal in Myanmar which people share with each
other while building business relationships which is also a part of the business culture of
Singapore. Just as the Singaporean business culture, it is expected in Myanmar that people
will take some time to read the business card after receiving the same.
Holding the cards with both hands is important in Myanmar which is also a part of
business culture in Singapore. A major difference between the two cultures is preparation

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before the meeting because, in Myanmar’s culture, parties have to meet on many occasions
in order to complete a business deal (Kaynak, Wolfe & Keys, 2012). People often meet more
than one time while discussing business before reaching a final conclusion. However, this is
not the case with the business culture of Singapore because parties prefer to prepare for
the meeting to make sure that they seal the deal without wasting any time. Modesty is
another key part of the business culture of both Myanmar and Singapore based on which
parties are expected to act nicely while dealing with each other. It is important that people
did not raise their voice or get aggressive in the business meeting and they also give
respects to elders (Menager, 2014).
While negotiating in business deals and bargaining, people avoid raising their voice,
and they keep calm during this conversation. However, a key difference in Singapore
business culture is that “losing face” communication between parties is very subtle and
people have to pay attention to their business partners’ body language in order to find out
what they are actually trying to say (Slater & Strange, 2013). Another key difference is
shaking hands in the meeting with employees of the opposite sex; it is common business
culture of Singapore that male business partners shake hand with female partners;
however, it is not the case with Myanmar as male partners usually avoid shaking hands with
female partners. Most business partners are relatives and peers of top-level management in
Myanmar; however, nepotism is not a big part of Singaporean business culture (Mok, 2012).
Another major difference in the culture of both countries is relating to given gifts before
business meetings. Before business meetings, it is common for business partners to give
each other gifts and favours in Myanmar which is not the case with Singapore. This is
especially the case with government authorities and other officials since it is illegal for
people to give gifts or favours to them (Ho & Chua, 2016). These are the key differences
between the business culture of Myanmar and Singapore which companies have to take
into consideration in order to ensure that they comply with cultural norms.
Hofstede’s Cultural Dimensions
Geert Hofstede developed cultural dimensions model which evaluate the culture of a
country based on six dimensions which include power distance index (PDI), individualism vs.
collectivism (IDV), masculinity vs. femininity (MAS), uncertainty avoidance index (UAI), long

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term vs. short-term orientation and Indulgence vs. Restraint (IVR) (Taras, Steel & Kirkman,
2012). Based on this model, the following are the key considerations which companies
should make while conducting their business in Singapore.
Power Distance
A high score in this dimension provides that people accept unequal distribution of
power whereas a low score denotes that people did not prefer the hierarchical distribution
of power. Singapore scores 74 that is considered high score in this dimension which shows
that unequal distribution of power is common in the country (Hofstede Insights, 2019).
Therefore, companies have to take into consideration that they must centralised the power
of managers because employees expect it. Control is expected from the managers and
employees’ attitude towards managers should be formal. Organisations should also take
into consideration communication challenges which should be indirect.
Individualism
A higher score in this dimension indicates a weak interpersonal connection between
people whereas people have strong, loyal bounding in case of a low score. Singapore scores
20 which show that it is a collectivistic society where ‘we’ is more important than ‘I’.
Organisations should ensure that the communication must be indirect and the managers
should maintain harmony and they must avoid open conflicts in the workplace. Foreign
companies should understand that “yes” did not mean “yes,” and people often did not give
their honest feedback due to politeness (Chung & Holdsworth, 2012).
Masculinity
A high score in this dimension indicates masculinity culture in which people prefer
heroism, achievement, and assertiveness to ensure that they achieve their goals. A low
score indicates femininity culture in which people emphasis on improving quality of life,
modesty and providing adequate facilities to weak. Singapore scores 48 which indicates a
femininity culture in which companies should ensure that they focus on caring for others
and improving quality of life of everyone rather than focus on achievement at any costs
(Hofstede Insights, 2019).

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Uncertainty Avoidance
A high score indicates that people are uncomfortable with uncertainty whereas a low
score indicates that people are comfortable with ambiguity. Singapore scores 8 that is a
considerably low score which shows people are comfortable with uncertainty. Therefore,
foreign companies can introduce change policies in the company because people abide by
the rules and they accept uncertainty in operations.
Long term orientation
A high score in this orientation provides that people focus on long term goals and
they are futuristic when it comes to the implementation of policies. A low score indicates
that people’s decisions are affected by traditional values. Singapore scores 72 which is a
high score that indicates that its culture supports long term investment such as slow results,
ordering relationships, perseverance, sustained efforts and having a sense of shame which
must be taken into consideration by parties while establishing their business in the country
(Hofstede Insights, 2019).
Indulgence
A high score indicates that satisfaction is good whereas a low score indicates
restraint through normative repression. Singapore scores 46 which shows that people prefer
to restrain the extent up to which they express their desires and impulses. Therefore,
companies should ensure that they have to promote employee engagement in the
workplace to receive insights regarding the effectiveness of policies (Catherine Henderson,
2014).

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Conclusion
In conclusion, the culture of Singapore affects the operations of companies that
establish their operations in the country and they have to comply with these cultural factors
to ensure that they sustain their growth in the market. The culture of Singapore is heavily
influenced by traditional values and western culture as they focus on respecting elders,
greeting with respect and exchanging business cards while dealing with business partners.
The business culture of Singapore is similar to Myanmar’s business culture; however, certain
key differences include preparation before the meeting, communication style for
negotiation, handshake with people from the opposite sex and exchange of gifts. By using
Hofstede’s cultural dimensions model, different consideration which foreign companies
should take while conducting their business in Singapore include avoidance of uncertainty,
hierarchy supervision of employees, building trustful relationships with employees and
respecting cultural values. Compliance with these policies will ensure that foreign
companies effective management their operations in Singapore and sustain their growth in
the market.

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