ESSEC Global MBA Students Get Taste for Business in Asia

This article is sponsored by ESSEC Business School.

Learn more about its Global MBA Program.

A growing number of MBA candidates seek European-based courses that offer experience of doing business in Asia. As the world’s top table turns under an economic paradigm shift, many business leaders of tomorrow have begun to look east.

Asia is already the fastest-growing economic region in the world, emerging relatively unscathed from the global financial crisis. The World Bank predicts China will become the largest economy in the world by 2030 and that India will become the second largest by 2035.

Global MBA students at ESSEC Business School, spend six weeks at the school’s Singapore campus to gain experience with Singapore business as well as an insight into the customs and practice of business in Asia as a whole.

Claudia Pumarejo, a global MBA student at ESSEC Business School who returned from Singapore recently, says: “Western Europe has achieved development already – things are pretty stable and settled and the markets are mature. On the other hand, Asia is booming right now. There are so many things to do, new markets to explore, new opportunities to seize, and ventures to try out.

“It seems to be easier to get a job or become an entrepreneur in Asia than it is in Europe, where the recession still affects the labor market.”

Classes and company presentations focused on doing business in Asia give students a greater awareness of the cultural and economic specificities of the region.

“Doing business in Asia is really different from other parts of the world. Of course, it is a very large and diverse continent, so you have to understand the distinctions between different countries. In places like India and Indonesia, family businesses are the norm. They go back generations and the family members take over management positions in the firm,” says Claudia.

“In countries like China and Japan, hierarchy and respect are very important. You don’t want to make your boss, or even any of your colleagues, ‘lose face’ by pointing out a mistake or by raising your voice at them, this is extremely rude and offensive.

“Trust is a huge matter in most Asian countries. Drinking and other informal social activities are important in many business negotiations – to get to know you outside of your business role. If you get along well and they like you, you’ve crossed the barrier and you’re in.”

Singapore business in the Four Asian Tigers club

ESSEC opened a Singapore campus in 2005 to offer a platform for ‘understanding the forces, complexity, diversity and challenges of a key region in the 21st century’.

It’s easy to understand why ESSEC chose Singapore as the location for its third campus, and the first outside of France: Singapore has the second-highest GDP per capita in Asia and the third-highest in the world. The sovereign city-state also boasts the world’s fourth-biggest financial center.

The island declared independence from the U.K, along with Malaysia, in 1963, before going it alone in 1965. Since then, Singapore business has boomed to become known as one of Four Asian Tigers – along with Hong Kong, South Korea, and Taiwan – a term coined for their shared history of rapid industrialization and exponential growth rates in Asian business.  Its economy is still going strong – in 2013, Singapore experienced GPD growth of over 4%.

A 2012 Boston Consulting Group report revealed one in six Singaporean households have at least US$1 million in disposable wealth, excluding property and businesses. It is estimated that by 2017, one in every 20 Singaporeans will be a millionaire, according to Forbes. 

A Global MBA with Asian business opportunities

Claudia has already worked in Asia and thinks that many of her fellow MBA students would be tempted by Singapore’s high living standards and “exotic charm” to “live the expat experience” there.  It also offers the exciting opportunity to be at heart of one of the world’s most dynamic regions.

Indeed, the unique atmosphere makes Singapore business-friendly and the city-state’s location makes it attractive to MBA graduates interested in doing business in Asia. Its strategic location between India and China makes it an ideal hub for entering these emerging markets. Furthermore, low income tax rates entice expats into Asian business with progressive rates whose top bracket are taxed at a mere 20%.

Claudia believes this exposure to Asian business and Singapore’s environment cannot be found anywhere else. “The ESSEC Global MBA experience in Asia changed my business outlook permanently,” she adds.  Meeting first-hand with Singapore business owners allowed her to learn about “the flexible policies that propel entrepreneurship and investment, allowing Singapore to be so economically dynamic”.

Additionally, studying in Singapore gave her an opportunity to discover its unique culture and explore the city-state from the idyllic beaches of Sentosa Island, to the renowned Orchard Road luxury district, to Little India and the Arab Quarter.  “Singapore is at the heart of Southeast Asia, so it is relatively easy and inexpensive to discover the region’s astonishing destinations such as Thailand, the Philippines, Malaysia, Bali or Langkawi,” she adds.

Claudia’s advice to future MBA students: “Keep an open mind about the possibilities before you.”  Although she currently plans to look for jobs closer to home in Mexico after completing her global MBA, she values the experiences and contacts she made in Singapore because “you never know how the dots will connect.”

As business becomes more global, crossing borders and cultures, such international exposure is increasingly essential.  Knowledge of Asian business, complemented by a global MBA, can help future leaders seize tomorrow’s business opportunities.

This article is sponsored by ESSEC Business School.