Social Before Singapore’s
independence, the nation was very corrupted and poor. The PAP used its
geographical position as an entrepôt state in order to build up a strong economy.
Singapore’s entrepôt drew foreign investments and quickly turned the city-state
into the Asia financial center. The PAP has implemented several policies such
as property-rights protections, and penalties for corruption. Singapore has one
of the lowest ranks when it comes to corruption, the PAP’s effort has
successfully succeeded (Carney, 2015).
Singapore ranks 48th in
the World Values Survey. The interpersonal trust in Singapore is relatively
low, which indicates a weak tendency of trust between individuals within the
firm. The low score may prevent Singaporean’s to do business with new partners.
In comparison to other Asian societies such as Korea and Taiwan, the
interpersonal trust is relatively high. This study does not find this
surprising since other Asian societies tend to create a network through
personal relationships or so-called Guanxi (Carney, 2015).