SingaporeTheresa Baraga, Fawn Locke, Keristin Marashlly, Gianna Pisano and Brian Woolard

A Background on Singapore

Some Notes

● Found as a British Colony in 1819 the name derived from the “city of the lion”

● Joined the Malaysian Federation in 1963○ Separated 2 years later and became independant

● Located in Southeastern Asia○ The islands between Malaysia and Indonesia

● Slightly more than 3.5 times the size of Washington DC● The climate: hot, humid, and rainy with 2 distinct monsoon seasons

○ Northeastern (Dec-Mar) ○ Southwestern (June-Sept)

● The terrain: lowland; gently undulating central plateau containing water catchment areas and nature preserves

Statistics

● Languages (4 official): Mandarin, English, Malay, and Tamil (82.4% total)○ Has many other languages (mostly dialects of Chinese and Indian)

totaling the remaining 17.6% ● Religion: Buddhist (33.9%), Muslim (14.3%), Taoist (11.3%), Catholic

(7.1%), Hindu (5.2%), other Christian (11%), other (0.7%) and none (16.4%)

● Population approximately 5.6 million● Growth rate at 1.92%

Interesting to Know● Mother’s mean age at first birth is 29.8 years● Life expectancy is 84.38 years

○ Men at 81.86 years○ Women at 87.07 years

● Health expenditures are at 4.6%of GDP○ Obesity - adult prevalence is only 7.1%○ Children under age 5 year that are underweight is only 3.3%

● Education expenditures are at 3% of GDP○ Literacy (age 15 and over can read and write)

■ total population at 95.9%■ Men at 98%■ Women at 93.8%

National Flag

● Red denotes BROTHERHOOD and EQUALITY

● White signifies PURITY and VIRTUE● Waxing crescent moon symbolizes a young nation on the ascendancy ● Five Stars represent the nation’s ideals of DEMOCRACY, PEACE,

PROGRESS, JUSTICE and EQUALITY

Ethnicity● There are three main ethnicities in Singapore

o Chinese (74.2%)o Malay (13.3%)o Indian (9.2%)o Other (3.3%)

These three ethnicities have different culture and religious practices that can affect how you do business.

Kiasu

● Important concept of Singaporean society● Means “afraid to lose”● Refers to the wish to come in first in everything● Some say it keeps standards high but others claim it leads to a graceless

society● Social class in Singapore is tied to how well you do, meaning it is a

meritocracy● Education is very important

o Believe good marks are the sure path to a good position that pays well

Signs of Success

Having the “five C’s”● Car● Condominium● Credit Card● Club Membership● Career

No matter what your ethnicity these are considered the important symbols of wealth and status.

Face● Face is an important concept meaning personal dignity. ● Singaporeans are very sensitive to retaining face in all aspects of their

lives. ● Face is a prized commodity that can be given, lost, taken away or earned. ● It is a mark of personal qualities such as a good name, good character,

and being held in esteem by one's peers. ● It can also be greater than the person and extend to family, school,

company, and even the nation itself. ● Face is what makes Singaporeans strive for harmonious relationships.

Family● Group, harmony, and mutual security are

more important than that of the individual. ● Family is central to the social structure

emphasizing unity, loyalty, and respect for the elderly.

● Family generally includes extended family and close friends who are treated as family members.

● Family is seen as the place one goes to for support.

Hierarchy● Claim they are an egalitarian society, yet they retain strong hierarchical

relationships, as society needs to be unequal to be stable. ● Drawn from Confucianism, which emphasizes respecting age and status,

even blind obedience to one's elders. In the workplace this is seen in the increased deference that is paid to employees who are older.

● Elderly are always at the top of the hierarchy and are treated with the utmost respect and courtesy, even if you do not personally know the individual, you will be expected to give special consideration.

● Elders are introduced first, are given preferential seating, are given the choicest food, and in general put on a pedestal.

● There is even a law in place that children must assume financial responsibility for their elderly parents should it be necessary

Non-verbal Communication● Rely on facial expression, tone of voice and posture to tell them what

someone feels. ● Often trust non-verbal messages more than the spoken word. ● Tend to be subtle, indirect and implicit in their communications.● Hint at a point rather than making a direct statement, since that might

cause the other person to lose face. ● Rather than say 'no', they might say, 'I will try', or 'I'll see what I can do'.

This allows the person making the request and the person turning it down to save face and maintain harmony in their relationship.

Silence● Silence is an important element

of communication. ● Pausing before responding to a

question indicates giving the question appropriate thought and considered their response carefully.

● To respond to a question hastily is thought to indicate thoughtlessness and rude behaviour.

Business Culture

GreetingsDepend on ethnicity and age though introductions are always done in order of age or status.● Young and/or work in multinational companies

o Often just shake hands with everyone, but this is not the case with older or the more reserved.

● Chineseo Ethnic Chinese shake hands. Their grasp is rather light although the

handshake itself can be rather prolonged. o Men and women may shake hands, although the woman must extend

her hand first.

Greetings● Malay

o Between men, ethnic Malays shake hands. o Men and women do not traditionally shake hands, since Muslim men

do not touch women in public. o Younger Malays may shake hands with foreign women, but it is more

appropriate to use the 'salaam' (bowing the head) greeting. o The salaam greeting is also used when two women meet.

● Indiano Ethnic Indians shake hands with members of the same sex. o When being introduced to someone of the opposite sex, nodding the

head and smiling is usually sufficient.

Name Etiquette-ChineseLike greetings, name etiquette is based on ethnicity● Chinese

o Traditionally have 3 nameso Surname is first o Address the person by an honorific title and their surname. o If they want to move to a first name basis, they will advise you which

of their two personal names to use. o Some Chinese adopt more western names in business and may ask

you to call them that.

Name Etiquette-Malay● Malay

o Do not have surnameso Use bin or binti meaning son of or daughter of followed by their

father’s nameo Titles

The titles Haji (male) and Hajjah (female) before the name means that the person has made their pilgrimage to Mecca as most Malay are muslim

o Name of Note For the Malay the name Sayyed (male) or Sharifah (female)

indicates that the person is considered to be a descendent of the prophet Mohammed.

Name Etiquette-Indian● Indian

o Do not use surnameso Commonly use a shortened version of their name as a nicknameo Use their name s/o (son of) and their father’s name if maleo Use their name d/o (daughter of) and their father’s name if female

Singapore do not use surnames. o At marriage, a woman drops their father’s name and use their

husband’s first name as a surnameo Sikh Indians all use the name Singh to denote themselves as Sikhs.

Business Etiquette-Overview

● Formal● Strict rules of protocol that must be observed. ● The group (company or department) is viewed as more important than the

individual. ● People observe a strict chain of command, which comes with expectations

on both sides. ● In order to keep others from losing face, much communication will be non-

verbal and you must closely watch the facial expressions and body language of people you work with.

Business Etiquette-Relationships

● Personal relationships are the cornerstone of all business relationships. ● Business is a matter of having the proper network, which is the result of

long- standing personal relationships or the proper introductions. ● Links are often based on ethnicity, education or working for the same

company. ● Once recognized as part of the group, you will be accepted and expected

to obey the unwritten rules of the group.

Business Etiquette-Relationships

● Relationships take time to develop so being patient indicates that your organization is here for the long-term and is not looking only for short- term gains.

● Always be respectful and courteous when dealing with others as this leads to the harmonious relationships necessary within business. Especially with someone who has a higher rank. The eldest person in the group is revered.

● Most Singaporeans are soft-spoken and believe a calm demeanour is superior to a more aggressive style.

Arranging Business Meeting Etiquette

● Appointments are necessary and should be made at least 2 weeks in advance, whenever possible.

● The most formal way to schedule a meeting is to write to the person concerned, although most Singaporeans will schedule an appointment by telephone, fax, or e-mail.

● Always send a list of people who will be attending and their title well in advance.

● Do not try to schedule meetings during Chinese New Year (late January/early February), since many businesses close for the entire week.

● You should arrive at meetings on time. Punctuality is a virtue.

Business Meeting Etiquette● Always wait to be told where to sit. There is a strict hierarchy that must be

followed. ● There will be period of small talk before getting down to business

discussions. ● Since questioning authority is a taboo, it is important to encourage

questions when after making a presentation and then smile when a question is eventually asked.

● Presentations should be accompanied by backup material, including charts and figures.

● Never disagree or criticize someone who is senior to you in rank as it will cause both of you to lose face and may destroy the business relationship.

NegotiationsTo be prepared for negotiations● Come a mental list of concessions you would be willing to make that would

not injure your own business. ● Avoid losing your temper or you will lose face and damage your

relationship. ● If you are signing a contract with ethnic Chinese, the signing date may be

determined by an astrologer or a geomancer (feng shui man).

NegotiationsUnderstanding what occurs at negotiations● Happen at a slow pace, since decisions are consensus driven ● While non-confrontational, Singaporeans are tough negotiators on price

and deadlines. ● They give a respectful pause of up to 15 seconds before answering a

question. Do not start speaking too quickly or you will miss the answer. ● They will not overtly say 'no'; likewise, their 'yes' does not always signify

agreement.

Business Cards● Business cards are exchanged after the initial introductions and with both

hands● If you will be meeting ethnic Chinese, it is a good idea to have one side of

your card translated into Mandarin. Have the Chinese characters printed in gold, as this is an auspicious colour.

● Hand your card so the typeface faces the recipient. ● Examine business cards carefully before putting them in a business card

case. ● Treat business cards with respect. This is indicative of how you will treat

the relationship. ● Your own business cards should be maintained in pristine condition. Never

give someone a tattered card.

Singapore’sTrade Environment

Free Trade Agreements● World Trade Organization (WTO) Member

● Advocates the trade efforts of:

○ Asia Pacific Economic Cooperation (APEC)

○ Asia-Europe Meeting (AEM)

○ Trans-Pacific Strategic Economic Partnership (TPSEP)

● Over 20 bilateral Free Trade Agreements with other nations

○ Including: Australia New Zealand, Jordan, China, India, Japan, South Korea, Costa Rica, Switzerland, USA, etc.

● Currently in ongoing negotiations for new FTAs

○ Canada, Mexico, Pakistan and Ukraine

Free Trade Agreements Cont…● Association of Southeast Asian Nations (AFTA)

o Member Nations: Brunei, Indonesia, Malaysia, Philippines, Thailand, Cambodia, Laos, Myanmar and Vietnam

Goal: To accelerate the economic growth, social progress and cultural development in the region and to promote peace and stability.

● ASEAN-Australia-New Zealand (AANZFTA)

The agreement has commitments in all three pillars of goods, services and investments.

● US-Singapore Free Trade Agreement (USSFTA)

Has helped Singapore exporters to benefit from tariff concessions, increase competitiveness, and attract investors.

Main Trade Partners● China (including Hong Kong)

o Both largest importer (23%) and exporter (21%) of goods

● Malaysia

o 2nd largest of both imports (12.3%) and exports (10.6%)

● Indonesia

o Imports (10.6%), Exports (5.3%)

● United States

o Imports (10.2%), Exports (5.5%)

● Japan

o Imports (6.2%), Exports (4.6%)

Main Imports/Exports (2013)Imports ($373 billion US)

● Mineral Fuels including Oil (31.3%) ● Electronic Equipment (25.4%) ● Machinery (13.1%) ● Optical, Technical and Medical Apparatus (2.9%) ● Gems, Precious Metals, Coins (2.4%)

Exports ($410.2 billion US)● Electronic Equipment (30.2%) ● Mineral Fuels including Oil (17.4%) ● Machinery (13.7%) ● Organic Chemicals (4.4%) ● Optical, Technical and Medical Apparatus (3.8%)

Trade Balance● Singapore has been operating

with a trade surplus every year since 1998.

● From 2003 to 2011 Singapore’s trade surplus exceeded 20 percent of the country’s Gross Domestic Product (GDP) each year.

● Singapore’s 2013 Trade Surplus was equal to $37.2 billion.

Trade Barriers● Singapore is generally a free port and an open economy.

● More than 99.9% of all imports into Singapore enter the country duty-free.

● Average Weighted Tariff for all imported goods is 0.06%

o According to the World Bank as October 1, 2014

● Dutiable goods are subject to high excise taxes. Such products would include:

o Beer, wine and liquor

o Tobacco products

o Motor vehicle and petroleum products

Trade Barriers Cont…● Import Licenses / Internal Taxes

o Singapore maintains a tiered motorcycle operator licensing system based on engine displacement which, along with a road tax based on engine size, adversely affects imports of large motorcycles.

o Singapore also restricts the import and sale of non-medicinal chewing gum.

o The Agri-Food and Veterinary Authority (AVA) tests every imported shipment of meat and poultry and does not accept raw and uncooked poultry and meat products that contain salmonella bacteria that exceed AVA’s unrealistic microbiological standards. This is not scientifically justifiable and has posed difficulties for other nations.

Commercial Food Imports● Approval of Imported Food Sources● Conditions for Specific Types of Food● Applying for Import Permit● Inspection of Imported Food

A trading company must be registered with the Accounting and Corporate Regulatory Authority (ACRA) before conducting business in Singapore.ACRA issues a Unique Entity Number (UEN) to all Singapore-registered companies

Miscellaneous Trade Facts● Singapore is a major trans-

shipment hub for world

o Handling approximately one-fifth of world container trans-shipments

o Also, almost 2 million tons of airfreight

Economic Freedom● Economic Freedom score of 89.4

○ Second freest in the 2015 Index● Over past 5 years:

○ Advanced Economic Freedom by 2.1 pts■ Largest score increase among 10 freest economies

○ Reinforced commitment to continued reform○ Sustained efforts to build world-class financial center

● Gains in Management of Gov’t spending, monetary freedom, and labor freedom

● Low score of corruption○ Reduce state’s involvement in key sectors to realize continued

advances

Lets Talk GDP● Approx $339 Billion

○ $62,400 per capita (equal to that of the leading nations of Western Europe) ● Gross National Savings at 44.6% of GDP● Consumption by end use:

○ Household - 38.4%○ Government - 10.3%○ Investment in fixed capital - 23.1%○ Investment in inventories - 3.1%○ Exports - 195.8%○ Imports - (170.7%)

● Consumption by sector: ○ Agricultural - 0%○ Industry - 29.4%○ Services - 70.6%

Labor in Singapore● Labor Force is 3.444 Million (excluding non-residents)

○ Agricultural - 1.3%○ Industry - 18.6%○ Services - 80.1%

● Unemployment Rate is at 3.1%

● Household income: ○ Lowest 10% - 4.4% of population○ Highest 10% - 23.2% of population

Checking Singapore’s Budget● Overall:

○ Revenues: $45.67 billion○ Expenditures: $41.83 billion (inc. operational and developmental)

● Taxes and Other Revenues at 15.4% of GDP● Budget Surplus is 1.3% of GDP● Public Debt

○ 105.5% of GDP (number 13 in comparison to the world) ○ Consists largely of Singapore Gov’t Securities, not borrowed since

1980s to finance deficit, NO external public debt● Inflation Rate at 2.4%● Commercial Bank Prime Lending Rate at 5.38%

The Singapore Dollar ($)● As of 17 March 2015: Exchange rate is 1:1.39 USD->SGD● Singapore became an independent nation known as the Republic of

Singapore in 1965.○ The new country established the Board of Commissioners of Currency, which

introduced the Singapore Dollar, with the first banknote series issued in 1967. ● Originally pegged to the British Pound

○ Re-pegged to the US Dollar○ In 1985 was finally allowed to float after adopting a market oriented approach

(although closely monitored). ● Board of Commissioners of Currency disbanded in 2002 and the functions

of the board given to the Monetary Authority of Singapore (the central bank)

Political Structure● Singapore is a sovereign republic with a parliamentary style of government● The government consists of the executive, legislative, and judicial functions

Executive● The actual head of state is considered to be the Prime Minister, who is

appointed by the President● The Prime Minister is a part of the Cabinet, which is comprised of other

ministers that are usually from the same political party as the President● The Cabinet is responsible for the day-to-day affairs of the state and

government policies.

Political Structure cont.Legislative● There is an elected President, though the position is mostly ceremonial● There is a Parliament modeled after the Westminster system (modeled

after the political system in the United Kingdom)● An election is held once every five years to elect members of Parliament

(MPs)● MP’s include elected, nominated, or non-constituency members

Judicial● Based on the common law legal system● Made up of district courts and a Supreme Court

Legal System● The Singapore legal system is largely based on the English common law

system. o Being a former British colony, Singapore received its laws from Britain

initially.

● The influence of English law has decreased over the years as the judiciary and legal systems of Singapore mature.

● There are two major sources of law in Singapore: o Legislation and case law.

● There are also conventions binding on Singapore concerning some international matters such as air transport or sea shipment.

Courts in Singapore● Supreme Court

o Court of Appeal Singapore’s highest judicial tribunal

o High Court

● Subordinate Courtso District, Magistrate, Juvenile, Coroner’s Courtso Small Claims Tribunals

● Other small tribunals for disputes on specific areas of law, notably:o The Syariah Court o Industrial Arbitration Court o Military Court

Employment● The EntrePass

o Required for foreigners who wish to start a new business in Singapore o Allows registered entrepreneurs and their families to live in Singapore o Pass holder may leave and re-enter Singapore any time o The pass is renewable for as long as the business remains viable

● Employment Passo Required for foreigners who are not permanent residents and want to

engage in any business, profession, occupation or any form of paid employment

o Minimum monthly income of more than S$2,500 required

Dispute Resolution ● Litigation

o Enforceable in Singapore and countries with which Singapore has entered into bilateral or multilateral treaties for reciprocal enforcement of judgements

● Arbitrationo The Singapore International Arbitration Centre provides facilities for

international and domestic commercial arbitrationo Rules are based largely on the UNCITRAL Arbitration Rules and the Rules of

the London Court of International Arbitration with some modifications

● Both may be enforced domestically and internationally in over 120 countries (including USA) as a judgement of the courts in the enforcement country.

Political Risk● Singapore is one of the most politically stable regions of Southeast Asia

● Singapore is a member of the Association of South East Asian Nations (ASEAN), the Asia Pacific Economic Cooperation forum (APEC), the Commonwealth Nations and the United Nations.

● Singapore has a zero tolerance policy for bribery, and is ranked 5th (out of 183) in Transparency International’s Corruption Perceptions Index.

● Singapore has placed extensive measures in place of terrorism attacks. They also actively participate in anti-terrorism activities. Their level of violent crime in the country is low.

Sources● http://www.tradingeconomics.com/singapore/balance-of-trade

● http://ieconomics.com/singapore-balance-of-trade-forecast

● http://www.singstat.gov.sg/statistics/browse-by-theme/trade

● http://www.export.gov/singapore/doingbusinessinsingapore/traderegulationscustomsandstandards/index.asp

● http://www.iesingapore.gov.sg/

● http://www.singstat.gov.sg/publications/publications-and-papers/economy

● The Straits Times, pA24, Whither Singapore’s Trade Surplus? February 7, 2013

● http://stat.wto.org/CountryProfile/WSDBCountryPFView.aspx?Country=SG&Language=F

● http://www.edb.gov.sg/content/edb/en/why-singapore/ready-to-invest/incentives-for-businesses.html

● http://www.worldstopexports.com/singapores-top-exports/2592

● http://app.singapore.sg/about-singapore/government

● https://www.gov.uk/government/publications/overseas-business-risk-singapore/overseas-business-risk-singapore#political-and-economic

● http://www.xe.com/currency/sgd-singapore-dollar

● http://www.kwintessential.co.uk/resources/global-etiquette/singapore.html

● http://www.heritage.org/index/country/singapore

● https://www.cia.gov/library/publications/the-world-factbook/geos/sn.html

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