Characteristics and Structure of Singapore Chinese Business
The above characterization of overseas Chinese business implies that ethnic
Chinese firms are homogenous, no matter where they operate, including Singapore. Such
a stereo-type description about overseas Chinese business is, more often than not, gravely
misleading2. As Gomez and Benton (2004) observed, there is “a large assortment of
Chinese business firms in terms of size, types of ownership and management, and areas
of operations.” Ethnic Chinese business in Singapore is a classic example.
In Singapore, ethnic Chinese business may be classified into three categories
(Chan and Ng, 2004), depending on their respective cultural traits. The more culturally
oriented Chinese group belongs to the first and second generations of Chinese immigrants
from mainland China, and their outlook as a group is predominantly traditional and
conservative. Some of these firms may have absorbed non-family members only after
their long service in the company. Even then, the final business decisions of these firms
ultimately hinge on family members. A majority of this type of ethnic Chinese businesses
are small in size and traditional in outlook. According to a survey conducted by the
Singapore Chinese Chamber of Commerce and Industry (SCCCI), they spend less than
2% of their business expenditure on IT (Straits Times, 2004).