World City Guide

Business

Business Profile
An obsession with productivity, the high standard of education of its workforce and its location at the heart of ASEAN (Association of Southeast Asian Nations) has made Singapore the most durable economy in the world. It is a remarkable model of economic development, with an almost uninterrupted growth of at least 8% per annum for over 30 years. As one of Asia’s 'tigers', it overtook Hong Kong as the best business centre in Asia in 2002. It also achieved high-profile recognition in 2001, when the World Economic Forum ranked it number one in Asia for growth competitiveness. Forbes Magazine held the Forbes Global CEO Conference in the city during the same year; and the IMF World Bank Annual Meeting is due here in 2006.

Although productivity growth was lower in the 1990s than in the 1980s, a result of the 1997 Asian financial crisis, Singapore’s slowdown was far less dramatic than its neighbours and its recovery is well underway. GDP real growth rate was 1.1% in 2004, with the estimated unemployment rate at 4.8%, a slight increase on 2003 (4.6%). Of the workforce in 2003 (latest figures available), 49% were employed in financial, business and other services; 18% in manufacturing; 11% in transportation and communication; 6% in construction; and 16% in other sectors.

The wave of recent regional and international events had a significant negative effect on the local economy, with a huge drop in tourists, but 2004 has seen a good recovery. The global recession after the September 11 terrorist attacks was followed a year later by the bomb attack in Bali in 2002, then the SARS outbreak in 2003 further discouraged visitors from the region. Nonetheless there were huge efforts to promote Singapore and 2004 saw around a 10% increase on 2002 figures, with an even bigger increase on SARS-affected 2003.

The Tourism Board have succeeded in promoting Singapore as one of the world’s top convention cities and the best in Asia, with the International Congress and Convention Association ranking it third in the world in 2003.

The business district lies towards the island’s east and southernmost tip and includes Orchard Road, Brah Basah Road and Raffles Boulevard, near which are the Singapore International Convention and Exhibition Centre, Pan Pacific and Suntec City. Most major international banks are here as well as international organisations like IBM, Nokia, National Panasonic, Canon, Toshiba, Hitachi, Sony and Nike.

Business Etiquette
Business Etiquette English is the official language of business in Singapore and business is conducted very much on a Western model. However, Asian (and especially Chinese) business ethics often prevail. Most offices are designed (interior and exterior) in consultation with a feng shui expert, in order to create the most auspicious environment for generating wealth and harmony, and most feature a fish pond or fountain to ensure that money flows in the right direction. Business cards are exchanged on every social and business occasion; and it is common courtesy to give or receive them with two hands (as with any piece of paper, including money). Corporate entertaining is high on the agenda and long lunches are often taken, with lavish buffets a popular option. Smoking is illegal in many places and is not always socially acceptable, so visitors should check before lighting up.

There are 12 public holidays a year, the most significant being Chinese New Year, usually in February. This is the only occasion when almost everything shuts down – locals spend time visiting their families and ex-pats leave for a long weekend away. During other public holidays, like Christmas Day, banks and offices close but shops stay open.

Business dress is fairly formal, however, men’s suits may veer towards lighter shades in Singapore’s tropical climate and, except for formal meetings, a jacket is usually dispensed with. Women wear skirt or trouser suits, while their Malay colleagues wear their national dress for formal functions. Some organisations have adopted casual Fridays, although only those departments with no client contact tend to take advantage of this.

Locals and ex-pats alike work long hours. The official working day is 0900-1800 but much longer hours are quite common.