A Journey in The Lion City: Evolution of Indian Businesses in Singapore
Introduction
The origins of the Indian diaspora in Singapore can be traced back to the founding of modern Singapore in 1819. The Indian diaspora here comprises of different sub-communities, such as the Gujaratis, Sindhis, Punjabis, Parsis, Tamil Muslims and Chettiars. Much like the heterogeneity of the Indian diaspora in Singapore, the Indian business community is largely heterogenous as well, owing to the differences in language, culture, religion of the different business communities, as well as the time period during which they had migrated to Singapore. Since then, the Indian business community has evolved to adopt a Singaporean identity, while maintaining the uniqueness of their own culture and heritage.
This paper will explore the evolution of Indian businesses in Singapore and posit some factors that have influenced and affected the way these businesses were run here. The journey of these businesses will be categorised into two periods: pre-independence and post-independence of Singapore. The main source of reference I will be utilising will be Jayati Bhattacharya’s Beyond The Myth. Other secondary resources I will be referencing will include online sources such as newspaper articles and reports. Throughout the paper, I will touch on some of the pivotal factors that were crucial in affecting and influencing Indian businesses in Singapore during each period, as well as some of the main differences in business focus and aims between the two periods. Finally, I will propose some potential challenges for Indian businesses in Singapore in the coming future.
Origins of Indian Diaspora in Singapore
The first wave of mass Indian migration to Singapore took place during the 1820s, when Singapore was colonised by the British. Many Indian migrants first came to Singapore as migrant workers in search of a better living, and many of them worked as employees before some of them decided to branch out and start businesses of their own. The Indian businesses in Singapore tend to be more community-based and family-oriented in nature , although there exist some differences between North Indian and South Indian businesses. North Indian businesses tended to be more outward-facing, as they had catered to local and foreign clientele. South Indian businesses were more inward-facing, with their main target audience being the local Indian population in Singapore . Few of them came from business-oriented castes or communities in India. At the same time, the two main Indian communities faced differences in terms of language, religion and caste structure, hence there was a lack of a cohesive identity amongst the Indian business community here. Despite these differences, the businesses here were quite influenced by cultural factors and the intra-ethnic networks, making them quite traditional in nature. The Indian business community back then were mostly involved in retail trade, wholesale, spices trade and textile businesses. Some of these sub-communities were also involved in financial services such as money-lending and money-changing.
While these businesses were diverse in terms of trade and identity, the main focus of these businessmen was to make a substantial living such that they can be remitted back home to their family. As a result, many of these people had aspired to return home upon accumulating a significant or substantial amount of savings .
Pre-Independence: World War II
During this time period, there were two major events that were crucial for the Indian business community here: World War II and the Partition of India.
World War II brought about significant economic shocks to the Singapore economy, including Indian businesses. During the War, many Indian businessmen lost their investments and their money. As the British forces evacuated from Singapore, businesses were left without proper management and their operations were often dislocated as well. Much like the other communities, the Indian community in Singapore suffered under poor working conditions. This had led to the 14% Indian population in Malaya in 1940 to fall to 10% by 1947 .
The War had proved to be extremely pertinent in affecting the Indian business landscape in Singapore even after it had ended. Post-WWII brought about slow trade for the community and it was difficult for the then-Indian Chamber to fight for the rights of the Indian businesses here due to a lack of representation on the Board, since the Indian business community here was quite heterogeneous in nature. As a result, this diverse group of Indian businessmen had to learn how to adapt to the discriminatory policies of colonialists in Singapore, in order to survive and continue making a living here for their families back in India.
Pre-Independence: Partition of India
The 1947 Partition of India brought about a new wave of migration to Singapore. Some up-rooted Sikhs and Sindhis found themselves migrating to Singapore in search of a safer haven as well as a better living. Singapore provided a lucrative business environment for these sub-communities to do business in, and many of them established their businesses here. The demographics of incoming Indian migrants began to gradually evolve as well. More well-educated Indians started to migrate to Singapore. This change was supported by the introduction of Visa in 1953, which helped to control migration rates to Singapore and encouraged the migration of more educated Indians. Many of these educated individuals were North Indians, and the North Indian community mostly came to Singapore as professionals and businessmen. The relaxation and reforms in local regulations and legislations had thus influenced the third wave of migration and attracted both high-skilled and low-skilled migrants to Singapore. The migration of more well-educated Indians had resulted in ‘brain gain’ for Singapore back then, through which the Singapore economy back then was able to reap the benefits of these highly-skilled and educated professionals and individuals. This influx of North Indian migrants gradually meant that the Indian businesses here were no longer just set up for the sake of the local Indian diaspora, but also meant for foreign clientele, since North Indian businesses were more outward-facing in nature. This had helped to promote greater trade and cooperation between Indian businesses in Singapore and foreign customers, prompting some changes in the direction of certain Indian businesses here.
Post-Independence: A New Beginning
Singapore’s separation from the Federation of Malaya in 1965 had brought about an uncertain future for Singapore and its economy. While Singapore had faced many difficulties during the initial stages of its independence, the local government had encouraged Singapore’s shift towards export-led industrialisation and had attracted global multi-national corporations to help Singapore achieve industrial and economic growth . The growth and development of the local Indian business community was thus influenced and shaped by local government initiatives, shifts in consumers’ tastes and preferences and technological advancements. Such included the development of social enclaves, modernisation of goods and products, development of online Indian marketplaces, the establishment of Indian business and professional organisations, and the social integration of the local Indian diaspora.
Post-Independence: Social Enclaves
The ethnically-diverse nature of Singapore’s society had led to the promotion of local ethnic enclaves as heritage sites by the Singapore government. By highlighting the racial and religious diversity of Singapore, these enclaves were preserved despite the economic and industrial development that took place in post-independent Singapore. Little India became known to be the Indian enclave of Singapore, and gradually saw its development towards becoming more commercialised and modernised, so as to attract members from outside of the Indian community, as well as tourists. Schools would begin bringing students on heritage field trips to such heritage sites to promote multiculturalism and to educate students on the way of life of other races. Tourists would also visit Singapore wanting to visit these racial enclaves, which were known to be popular and famous tourist destinations. Hence, such developments had increased the influx of visitors from outside of the local Indian community.
As a result of the commercialisation and development of Little India, Indian businesses in the vicinity have managed to reap some benefits but have also experienced some negative effects. The marketing Little India as a social enclave and hence major tourist attraction for tourists has brought in large tourist volumes and hence customers for the businesses in the vicinity. Before the development of Little India, many of the shops and businesses within the vicinity mainly catered to the needs of the local Indian community, and this had limited the consumer base that these businesses were selling their products and services to. Within the influx of tourists, the businesses now have a greater consumer base, and this would ideally bring in more revenue for them, helping them to prosper.
However, it is significant that the negative impact be taken into account too. While greater tourist volume and hence revenue for these Indian businesses may be positive, the commercialisation and development has constructed Little India into a more contemporary site, possibly diluting the culture of the social enclave and the community in the process. The Verge, one of the first largest and modern shopping malls in Little India had opened in 2003. This was part of the refurbishment of the old Tekka Mall to give a more contemporary feel, in hopes of catering to the needs of the young, the old, and people from different races and backgrounds. The Verge had housed tenants selling ethnic Indian wear, food, beverages and services. It was a modern approach to the traditional shops and restaurants one would see along the stretch of roads in Little India. While such modern buildings were aesthetically pleasing, it lacked the authentic experience that was present in the Little India precinct, and was what characterised most businesses in Little India in the past. Tourists who were interviewed by The Sunday Times had shared that the Little India precinct had provided an experience that was unique to the community and Singapore . In the same article, Dr. Chua Ai Lin, President of the Singapore Heritage Society, also shared that the maintenance of an authentic experience requires the cultivation of heritage, which is something that is cultivated over time and cannot be artificially recreated. It is thus important to take note that while the development can help to improve the quality of the spaces and bring in more tourist dollars for the businesses in the vicinity, the community’s sense of identity and its authenticity must not be diluted for the sake of modernisation. Nevertheless, the development and modernisation of Little India marked a turning point in the way Indian businesses were run in the precinct and symbolised some form of cultural dilution due to modernisation.
Post-Independence: Changing Tastes and Preferences
Outside of development and commercialisation, Indian businesses also found themselves gradually having to adjust to the changing tastes and preferences of the newer generation of Singaporean Indians. Dr Jayati Bhattacharya had previously shared on how Indian jewellery stores have started selling silver jewellery and jewellery with more modern designs, in order to cater to the likes of the newer generation . The younger generation of Singaporean Indians generally do not seem to like gold jewellery as much as their parents’ or grandparents’ generation. Traditionally, gold jewellery has been known to be an important aspect of Indian culture, being used to celebrate marriage unions, childbirths, or even as part of offerings and gifts in religious festivals and rites. However, this change in tastes and preferences, coupled with rising gold prices, has prompted Indian jewellers in Singapore to diversify their jewellery types in order to stay competitive. This is also in light of the immense competition found in the vicinity. One can easily find at least 10 over jewellers in the vicinity of Little India and Serangoon Road, which explains why it is so pressing that Indian businesses need to stay relevant and competitive.
Post-Independence: Technological Advancements
Another way in which Indian businesses are changing due to the newer generation is in the form of online shopping. The advent of the technological boom has seen more and more people opting for e-commerce as an option to procure their goods and services. In fact, a Google and Temasek Holdings report has predicted that this market size will grow to a staggering number of US$5.4 billion by 2025 . Hence, the local Indian business community has gradually adapted to this shift in consumer trends by going online. G Jayvarman had started Daily Everything Indian (Dei), an online marketplace that sells the products of over 50 Little India vendors. The online marketplace helps to bridge the gap of knowing how to navigate online spaces, but lacking the knowledge on shopping for Indian products. Apart from catering to the needs of the younger generation, it also helps to reduce the crowds of people in Little India. This shift has helped traditional Indian businesses see an increase in customer acquisition and profits. Mr. S Manimaran who runs Raghvendra Enterprise has commented that going online has helped him to increase sales by 15% and has allowed him to reach out to a new customer base . Dei is hence an example of how the Little India experience has been enhanced and how the technological boom has changed the way Indian businesses in Singapore operate.
Post-Independence: Business Associations
As the Indian business community flourished along with Singapore’s development, organisations and associations were created to protect the interests of the community and to support its entrepreneurial spirits. The Singapore Indian Chamber of Commerce & Industry (SICCI) has its origins in the 1920s as the Indian Merchant Association but has evolved by the 1990s to reflect the changing nature of the Singapore Indian business landscape. SICCI serves to support and connect its members to the relevant connections that can help them operate their businesses both in Singapore and overseas. One example would be Trade Match, a subsidiary of SICCI that specialises in connecting SICCI members with suitable business partners to help them develop their business or expand them in overseas markets. Such efforts are imperative in this evolving economy since changing global trends would require businesses to diversify themselves and reach out to different partners, in order to minimise their business risk. Small businesses may find it hard for themselves to independently reach out to new business partners or may find that they lack the networks. SICCI helps to plug that gap and ensure that these businesses are adequately supported.
The SME Centre@SICCI was set up by Enterprise Singapore and SICCI to support small and medium enterprises in Little India. The SME Centre aims to help these businesses keep up with evolving technological trends and stay relevant. It also offers customised solutions to help businesses to re-evaluate their business processes and help them to re-organise themselves. Such institutions are important as many Indian businesses were traditionally known to be more family-oriented. These family-oriented businesses were met with difficulties as Singapore experienced rapid technological advancement. These businesses also struggled to compete with the big multi-national corporations that were encouraged to enter Singapore in the 1960s and 1970s. Hence, such organisations have helped Indian businesses in Singapore to cope with the changing economic landscape and adapt to become more competitive.
Post-Independence: Social Integration
As the Indian migrants from the different sub-communities settle down in Singapore, their descendants and offspring gradually grow up in this local landscape and multicultural society. The newer generation of Singaporean Indians have hence worked out an identity that is ‘rooted in Indian culture’, but still unique in a Singaporean mindset and lifestyle . The integration of the Indian community alongside other cultural communities in Singapore have resulted in the development of unique integrated and modern fusion products by local Indian businesses. The development of Indian Singaporean cuisine by Indian restaurants in Singapore is a prime example. A popular Indian Singaporean dish, fish head curry, involves combining the traditional spices of a South Indian fish curry with the fish head, an ingredient not commonly used in Indian cuisine but rather popular amongst the Chinese community. It was developed by M. J. Gomez, an Indian immigrant, for the Chinese customers at his stall . Other forms of such Indian Singaporean cuisine developed by Indian businesses include the popular Indian Rojak, which cannot be found in India. It was created by the Muslim community and eventually sold by the Tamil Muslim community in Singapore. These symbolise how Indian food businesses in Singapore have been influenced by local tastes and preferences, even integrating the fusion cuisine to become an integral part of local Indian culture.
While Indian businesses were traditionally known to operate within popular social enclaves, the newer generation of Indian restaurant owners have also started branching out of their Indian enclaves to open in more up-market areas of Singapore, such as Clarke Quay and Holland Village . These businesses feature a more ‘professional and attractive get-up’ compared to that of the older generation. Muthu’s Curry saw its origins along Klang Road, within the current Little India precinct. However, it has since franchised its operations by opening in areas such as Suntec City and Dempsey Road, which are known to be more up-market areas in Singapore. This was likely to have been done in a bid to modernise the business and demonstrates how newer generation of Indian business owners here are shifting away from the family-oriented method of doing business here and integrating into Singapore’s unique way of life and mindset.
Moving Forward: Balancing Priorities
The Indian businesses in Singapore have evolved and shifted their directions across the decades. These businesses that we see around us today are different from that of their predecessors’ in terms of business models, types of goods and services and way of operation. They have been influenced by local cultures and the changing landscape, prompting them to evolve in order to stay relevant and competitive. In the near future, it is likely that these businesses will continue to diversify and evolve, but it is important that the element of Indian culture and customs in these businesses do not get diluted due to modernisation and development. This not only applies to just Indian businesses, but also to Indian enclaves in Singapore. This may become a difficult dilemma for Singapore, as we will have to struggle with balancing the need for development and preservation of heritage.
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