When considering the prospect of setting up an overseas company in Singapore, it’s vital to grasp the intricacies of Singaporean work culture. Singapore boasts a diverse work environment influenced by various cultures and governed by a set of established rules and conventions. This work culture can differ among companies, particularly between multinational corporations and locally owned businesses. Regardless of the business’s origin, understanding the cultural norms that guide work behavior is essential.
Cultural Diversity Shaped by Chinese and Malay Influences
The majority of Singapore’s population is Chinese, followed by Malaysians and Indians. Consequently, the working culture is primarily shaped by the values and practices of these two dominant cultures.
The nation recognizes four official languages: Malay, English, Tamil, and Mandarin. While Malay serves as the national language, English holds prominence as the primary language of instruction and business communication.
Singapore’s work culture predominantly leans towards group orientation, hierarchical structures, and a commitment to adhering to a comprehensive set of rules.
Chinese Influence
Chinese values, constituting a significant 75.2% of Singapore’s population, place a strong emphasis on respect, particularly within hierarchical relationships. In line with these traditional Chinese values, employees prioritize introductions based on seniority, irrespective of the junior employee’s higher rank. Colleagues exchange preferred names as a sign of respect.
Malay Influence
The Malay population, comprising 13.6% of Singapore, largely follows Islamic values due to their Muslim majority. In respect of these Malay/Islamic values, Malay/Muslim employees avoid close contact with colleagues of the opposite sex, refraining from activities such as handshaking, kissing, or hugging. During office hours, they observe short daily prayers, usually around 1 pm and 4 pm, often in designated private areas within the workplace. On Fridays, male Muslim employees may enjoy extended lunch breaks to participate in congregational prayers at the mosque. Moreover, they abstain from consuming non-halal products when in the company of Muslim colleagues.
Working culture in Singapore
Established Hierarchy
Singapore’s work culture places great importance on respecting authority. Organizations typically maintain clear lines of authority, requiring junior employees to comply with directives and acknowledge their subordinate status. High-ranking employees and executives command respect within the company.
It’s worth noting that multinational and international corporations tend to feature simpler hierarchies, largely influenced by foreign ownership. In such organizations, superiors and subordinates enjoy a greater degree of flexibility for healthy disagreements.
The significance of age in organizational hierarchy cannot be understated in Singapore and many Asian countries. Younger, freshly graduated individuals often struggle to secure positions of value in companies. Interactions between employees of the same position or title should not disregard the age hierarchy, as assuming equality based on titles can be perceived as disrespectful.
Stringent Rules
Singaporean work culture favors rules tailored to specific situations rather than abstract universal principles. Singapore is renowned for its extensive set of regulations governing various aspects of professional life. Many local companies seek to maintain order and prevent unfocused fragmentation, often encouraging innovation within well-defined boundaries.
Singapore has recognized the need to foster widespread creativity to remain competitive in the global economy. Initiatives are underway to nurture creativity across the population gradually.
Emphasis on Collaboration and Teamwork
In contrast to work environments that prioritize individual achievement, Singapore’s organizational culture places a strong emphasis on collective achievement. Companies strive for success through the combined efforts of employees, promoting collaboration and teamwork. Employees are expected to work harmoniously, align with group decisions, and prioritize collective needs over personal aspirations. The prevailing work culture emphasizes shared responsibilities, rewards, and opportunities.
Working Hours
Standard working hours in Singapore are as follows:
– Five workdays a week: Up to 9 hours a day or 44 hours a week.
– More than five workdays a week: Up to 8 hours a day or 44 hours a week.
The Employment Act imposes a maximum limit of 12 working hours per day. Overtime can extend up to 72 hours monthly, with compensation at a rate of at least 1.5 times the basic hourly rate.
Singaporean employees are known for their diligent work ethic, often deemed workaholics. The competitive nature of the workplace and the drive to outperform businesses contribute to long working hours, deep-rooted in Singaporean work culture.
Based on Ministry of Manpower statistics for 2021, the average working hours stood at 44.2 hours per week, with an average of 2.5 paid overtime hours during the same year. These numbers reflect the commitment of Singaporean workers, striving to go the extra mile.
To address work-life balance concerns, the Singaporean government has implemented policies to reduce total working hours, gradually decreasing the number of working days.
Avoiding Cultural Missteps
For foreign investors and Vietnamese entrepreneurs considering international company registration in Singapore, understanding and respecting Singapore’s cultural norms are paramount. Avoiding cultural mistakes can greatly enhance your business prospects. Here are some critical considerations:
1. Public Behavior: Avoid spitting, chewing gum, or smoking in public areas, as dedicated smoking zones are designated. Familiarize yourself with Singapore’s smoking policies for compliance.
2. Respect for Authority: Public criticism of religion, politics, crime, punishment, or bureaucracy is prohibited. Violations may result in fines or legal action. Public disagreement or correcting a superior or higher authority is generally discouraged, particularly in interactions with traditional Asian bosses.
3. Public Displays of Affection: While Singapore isn’t a strictly conservative Muslim country, it’s advisable to refrain from overt public displays of affection. Holding hands is acceptable, but intense public displays of affection should be avoided.
4. Physical Contact: Exercise discretion regarding physical contact with individuals of the opposite sex unless you are related or married.
5. Cultural Etiquette: Avoid touching someone’s face or head, pointing with your index finger, or using your feet to touch objects, as these actions may be considered impolite or disrespectful.
6. Business Card Exchange: When giving or receiving business cards, adhere to the traditional practice of using both hands, as offering or accepting cards with one hand is considered rude.
How can Iris International support you?
In conclusion, Singapore’s work culture reflects a unique blend of multicultural influences, stressing respect for authority, adherence to a set of stringent rules, and a strong focus on collaboration and teamwork. Understanding the values and practices rooted in Chinese and Malay cultures is essential when operating within this diverse environment. Additionally, recognizing Singapore’s long working hours and the government’s initiatives to promote work-life balance is crucial.
For foreign investors and Vietnamese entrepreneurs seeking to establish an overseas company in Singapore, Iris International offers comprehensive incorporation services in Singapore. Our expertise extends from navigating cultural intricacies to providing legal and administrative support, ensuring a smooth and successful venture into Singapore’s thriving market. Partner with Iris International to realize your business aspirations in Singapore.
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