Singapore's success puts global spotlight on its corporate leaders

OF ALL the qualities leaders need to succeed, self-belief is arguably the most important one. No honest professional would ever take up a leadership role if they didn't believe they were ready for it. That is because no leader can ever plan a strategy, lay out a vision and motivate their team - all key to succeeding at that level- if they don't believe they can accomplish it.

Self-belief emanates largely from our own successes and accomplishments and our confidence in replicating these in a new context. This is a topic often talked about in forums on leadership. However, there is one factor that many people tend not to pay much attention to on this front: how the success of a country shapes the mindset of its leaders - not just the political ones but also corporate bosses.

Singapore is a great example of that. The city-state is celebrating its 50th year of independence in 2015. In these five decades, it has grown from being the familiar little red dot to one of the richest countries in the world and a global financial centre.

When a country achieves that kind of success, almost all sectors tend to benefit from it. It has been no different in Singapore's case. Its growth has been mirrored by local companies, with the likes of DBS Bank, Keppel, Singapore Airlines and Singtel going on to become key regional, and even global, players.

The success of Singaporean firms on a global stage has also put local corporate leaders, who have played a key role in their success, in the spotlight. Leading domestic companies, especially the big government-linked corporations (GLCs), are turning to homegrown leaders to take on the top jobs in their boards and management teams, reversing a trend of hiring Western executives for such positions.

In the last 10 years, the number of Western executives on the boards and executive committees of the largest GLCs in the country has fallen by nearly 25 per cent.

The reasons are simple. In the earlier years, many Singaporean firms appointed such executives to bring in a global perspective and experience to their leadership teams. However, as these companies have matured, their senior local executives have gained valuable experience and knowledge and are increasingly being appointed to leadership roles.

At the same time, a large part of the global growth is currently being driven by Asian economies. As a result, many companies are focusing on growth in this part of the world, a change from some years ago when the US and Europe were key growth markets. This change in focus means companies are looking for leaders who are well-versed with Asian rather than Western markets, giving another advantage to local executives.

Finally, there is a wider pool of local talent available to companies to choose from. Many Singaporean executives have studied and worked abroad, giving them an opportunity to gain valuable knowledge about global business practices, a key attribute senior executives need to possess.

And it is not just domestic companies that are looking to Singaporean executives for leadership roles.

Firms across the globe are eyeing them as potential candidates to join their boards. Currently, Singaporeans account for nearly a quarter of all Asian executives appointed on the boards of the top 20 companies in four of the largest economies in the world: United States, Germany, France and the UK. Singaporeans are now serving on the boards of global corporations like AXA, Shell, Manulife, Gemalto, ANZ and Diageo. Their success on the domestic and regional front has given them the belief that they can succeed on the global stage.

While their success with domestic firms is playing a big part, there are other factors that make Singaporean executives attractive to foreign firms. Singapore has a reputation for professional ethics and absence of corruption. Senior corporate leaders here are often educated internationally (predominantly in the UK), are comfortable with the Western mindset and speak fluent English.

At the same time, many multinational corporations have based their regional headquarters in Singapore. As a result, many Singapore executives have worked with international businesses and are familiar with business practices in the West. That, coupled with their knowledge about the Asian markets, makes them attractive to global firms looking to expand in Asia.

The fact that Mandarin fluency levels in Singapore are high, especially among the ethnic Chinese, is also a key advantage for Singapore executives, as this makes them able to facilitate business dealings with China.

With the region set to be the epicentre of global growth for the next few years, Singaporean executives are likely to be in even more demand. But firms will need to continue expanding their pool of board directors.

The proponents of good corporate governance have been pushing to limit the number of board seats that a single person can hold and to strengthen the criteria for independence. They want to ensure that the quality of leadership and governance becomes top class. With Singapore, it is difficult imagining it being otherwise.