Cultural Etiquette in South East Asian Business: What You Need to Know
Asia South-East, varied in nature and dynamic, has some of the world’s fastest-growing economies. The countries in this region are Singapore, Malaysia, Thailand, Indonesia, and Vietnam. Most of these countries are today considered major business hubs with foreign investments and companies expanding into them. But it is not restricted to knowing the market trends and the economic policies of the region; rather, it encapsulates a whole lot more within cultural norms and etiquette.
Each country in ASEAN has its cultural features, but there are some values common in affecting business encounters-such as hierarchy, relationship-based mobility, and indirect communication. Lack of awareness of these aspects of culture might miss opportunities or totally destroy business relations.
This is a blog that unfolds the fundamental intricacies of business etiquette in South East Asia, which will ensure that you cruise through the rich and diverse culture with confidence.
Hierarchy and Respect: The Needed Value
Hierarchy has a significant part in all kinds of business contacts through South East Asia. Most of the countries in this region have had its cultures deeply influenced by confucianism at best or buddhism at worst or by some traditional social structures emphasizing respect to authority and seniority. The highest-ranking person in a company is considered first in the meeting and negotiation, and his opinions are the most valued.
Geographically speaking, in Thailand-in this country where the culture is influenced by Buddhism-the difference in status will reflect in language, greeting etiquette, and the decision-making process. Kreng jai encourages making and avoiding undue discomfort or confrontation. Indonesia has a similar consideration whereby respect for elders and senior executives is most expected, and public disagreement with higher-ups is discouraged.
Singapore even has very modern and international, yet still bounds people by hierarchy, especially in traditional Chinese and Malay businesses. Top executives should be addressed by their titles when politely deference is expected when it comes to their opinions. Understanding and respecting hierarchy will help you earn the trust and credibility that you need while doing business in the region.
Forming Solid Relationships: The Formula for Success
All business in South East Asia revolves around relationships-also called guanxi in Chinese culture. Trust and personal bonding must be established before any business transaction can take place. Thus, while business transactions are sealed purely on paper in most western countries, dealings in South East Asia include personalizations.
For instance, in Vietnam, informal meetings and networking are important practices to seal deals. Usually, coffee breaks, meals, and even karaoke are the venues for business discussions. Likewise, in Malaysia, trust is created over time; it is important for someone to know well their business partner’s values and interests, and even those of his or her family before making a significant advancement to developing working relationships.
Presenting gifts would also be an accepted activity in countries such as Indonesia or the Philippines, where small gifts are given as an expression of gratitude and goodwill. But in places like Singapore, with stringent anti-corruption laws, gift-giving should be handled delicately so as not to be misconstrued.
Patience and perseverance, after all, create the predominant block with which business relationships are built in South East Asia. The time spent in cementing a solid platform of trust shall extend the length and breadth of prospective business partnerships.
Communication Styles: Indirect and Polite
The major salient factor in South East-Asian business etiquette is the understanding of communication styles. One style found in the West, where directness is cherished, is a style that is avoided in other South East Asian nations that prefer to stay in harmony and away from conflict.
For example, in Thailand, Malaysia, and Indonesia, people might avoid saying a direct “no,” as being too impolite or confrontational. Instead, they would try to get their point across indirectly by saying something like ”We will consider it”, or “It may be difficult” as a way to communicate rejection. Recognizing these subtleties will help you interpret replies appropriately, hence preventing any miscommunication.
Filipino communication is characterized by warmth and expressiveness directed towards fostering camaraderie. Still, there is a tendency among Filipinos to practice the concept of hiya, or shame, meaning they may evade blunt refusals or criticism to spare someone from an awkward moment. Vietnamese business professionals also routinely fall silent or mumble vague responses rather than brazenly refuting an idea.
The Singapore business landscape is thus quite active, where strong direct communication is exercised between opposing sides. In other neighboring countries, such an overt manner of communication is discouraged, especially in traditional Chinese or Malay business settings.
A successful communicator in South-East Asia is usually a patient listener, someone who is observant about these seemingly less polite cues and devoted to the rest of the conversation.
Meetings and Business Etiquette
In South East Asia, business meetings are regulated by spacious formality, and upholding local customs gives a good impression. Punctuality will oftentimes take precedence in most countries, especially in Singapore and Malaysia, where one arrives late at the risk of being regarded disrespectful. Not so much in Indonesia or the Philippines, where a little tardiness will be tolerated, while the clock becomes a little more indifferent.
The most important ritual in the whole region is the exchange of business cards. In both Thailand and Indonesia, cards should be presented with both hands out of respect. In Vietnam, it is expected to examine the card and take pride in reading it before putting it away, not simply slip it into a pocket. Singapore tends to take an international view but considers the giving of cards with both hands to be a standard of professionalism.
Dressing appropriately is equally important. Singapore and Malaysia would typically adhere to the western standards, while other countries such as Thailand and Vietnam might have looser dress codes depending on industry. In all countries along the east coast of Africa, dressing with modesty and professionalism is well recommended.
During meetings, it respects everyone to call them by their official titles together with surnames. For instance, in Malaysia or Indonesia, it is very common to refer to an older executive or respected person through titles like Datuk, Tan Sri, or Haji. This grounds that you had learned the name of that person and had respect for the local culture.
Dining Etiquettes and Social Gatherings
Having meals takes an important part in the business relationship in south-east Asia, so knowing how to dine at their tables is a must. For instance, in Thailand and Vietnam, the top executive at the table orders the food and pays for the meal. It is polite to wait for an invitation from the host before starting one’s meal.
Since a significant part of the population is Muslim, as for Malaysia and Indonesia, always check with the hosts if they have halal restriction in their diet. Also, never offer alcohol unless you are sure it is okay. In Singapore, business meals are served at expensive restaurants or hotels; tipping is not expected due to the service charges that have been added to the bill.
Chopsticks are used widely in Vietnam and Thailand while hands, sometimes spoons and forks, are used in Malaysia, Indonesia, and the Philippines. The best way to avoid making cultural faux pas in eating is seeing others eat and then copying them.
Cultural etiquette forms the basis for any successful business interaction in South East Asia. Those include respect for hierarchy; indirect communication; building strong relationships; understanding the right meeting procedures and dining etiquette. A little bit of cultural awareness can make a great difference in the kind of business success one can achieve.
The understanding of country customs takes respect into account and thus increases the chances of a long time, fruitful relationships made with businessmen across this rapidly growing region.
References
- Hofstede, G. (2001). Culture’s Consequences: Comparing Values, Behaviors, Institutions, and Organizations Across Nations. SAGE Publications.
- Mead, R., & Andrews, T. G. (2019). International Management: Culture and Beyond. Wiley.
- Hooker, J. (2008). Working Across Cultures. Stanford University Press.
- ASEAN Economic Community (2023). ASEAN Business Guide. Retrieved from www.asean.org
