Mind the Gaps: Singapore Business in China

Preface

© 2005 Institute of Southeast Asian Studies, Singapore Preface Mind the Gaps: Singapore Business in China is the result of a six-month study completed in June 2004, which explored various dimensions of the Singapore business experience in China. The high priority given to entering the China market reflects a general consensus that “getting it right” in China is one of the most important positioning exercises for Singapore’s success in the 21st century. But there is also a general acknowledgement that “the winning formula” has yet to be perfected. The study is based on two types of data. First, quantitative, comparative data charting the contemporary history of Singapore’s rapidly accelerating China trajectory was collected and analysed. Second, interviews were conducted with businessmen, bureaucrats, and academics in Singapore and China. The authors worked closely with a team from the Chinese Marketing Research Centre of Fudan University who managed the China portion of the study. Interviews in China were conducted in Shanghai, Liaoning, and Zhejiang provinces — chosen because of Singapore’s extensive existing involvement, and current focus on expanding business relationships. We interviewed a total of 88 business executives, bureaucrats, and academics in China and Singapore, including 48 Chinese nationals (including 3 from Taiwan), 38 Singaporeans, and 2 Chinese Malaysians. The purpose of these interviews was to understand Mainland Chinese views on Singapore businesses operating in China, and Singapore views on doing business in China. Interviews were conducted either in Mandarin or in English, and the working language of analysis is English. There was no formal questionnaire, and no attempt was made to quantify interviewee responses, other than to note how frequently a particular observation was recorded. (For details on the interviews, see Appendix 1.) The first chapter of the report traces policy milestones and compiles quantitative, comparative data charting the contemporary history of © 2005 Institute of Southeast Asian Studies, Singapore x Preface Singapore’s rapidly accelerating China trajectory. But these growth statistics also highlight an increasing asymmetry. Singapore is more dependent on China than China is on Singapore. One way for Singapore to manage this asymmetry is to target emerging provinces and cities, and carve out a niche as a more significant player through building networks of provincial and city government and business relations. Proceeding from macroeconomic data to the firm level, it is possible to describe the Singapore experience in more detail. The second chapter draws largely on our interviews with Singapore and China business players, and analyses their observations and insights on Singapore’s business operations in China. Cultural perceptions are illustrated through business management, operational styles, and business practices. In the rapidly expanding constellation of foreign business entrants into China, Singapore occupies a distinct, and unique position. What gradually emerged out of analysing these interviews is a collective narrative on Singapore-China business relations. Particularly in the past decade, China has seen the arrival of more foreign businessmen than at any time in recent history. China is grappling with how to categorize this new constellation of foreigners, and also how to process this interaction in their business dealings. Narrowing our focus, there emerges a narrative on what specifically distinguishes Mainland Chinese from Singapore businessmen, and what makes them unique. Thus beyond what the numbers tell us, and what various government policies attempt to foster, one needs to mark what people say. The final chapter draws on the research findings of the previous chapters, and distills some of the more important lessons learnt from the Singapore experience in China. This includes an analysis and assessment of current and future trends relevant to successful business positioning in China, and options for Singapore entrepreneurs. Singapore’s business investments in China can be viewed collectively as an attempt to transfer business models that have been successful in Singapore, into the Chinese business environment. For Singapore transfers to succeed, ideally, the operating environment should be similar. If it is not, then the Singapore model must be adapted to fit the new set of circumstances. This adaptation process requires a culturally sensitive implementation capability. Singapore’s investments in China present a complex picture, and the learning curve has been steep. The impression is that there are more successful ventures now than © 2005 Institute of Southeast Asian Studies, Singapore Preface xi previously, as Singapore business people become more savvy, more experienced, and more knowledgeable about China. Special thanks to the businessmen, bureaucrats and academics in Singapore and China who so generously offered...