Business Culture
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Meetings
- Though East Timorese tend to have a relaxed view of time, time and punctuality are important in a business context.
- Pre-scheduled appointments are recommended given that some business partners may move around frequently and at short notice.
- East Timorese people tend to have longer lunch breaks and it is common for people to attend to personal matters in the afternoon. Therefore, it is best to avoid scheduling meetings between lunch (12pm) to early afternoon (2pm).
- It is also advisable to confirm meetings the day before. Be open to the possibility of rescheduling appointments.
- It is common for people to arrive at a meeting 15 to 20 minutes after the designated time. Moreover, meetings tend to run overtime. Nonetheless, it is advised to aim for punctuality and inform your East Timorese counterpart if you are running late.
- The most common greeting in a business setting is a handshake, regardless of the gender of those greeting one another.
- It is considered impolite and disrespectful to hold eye contact with those with more seniority or authority in the company. People tend to look down or look away.
- In a business setting, it is common to address people with the titles Senhor (Mr.), Senhora (Mrs.) or Menina (Miss) followed by the person’s first name.
- People of certain professions may be addressed by their professional title (e.g. Doutor [male] or Doutora [female] for doctors) or a combination of titles (e.g. Senhor Doutor [Mr. Doctor]).
- It is common for the person hosting the meeting to indicate to guests where to sit.
- Allow some time at the beginning of the meeting to socialise and exchange pleasantries before mentioning business matters.
- Food or beverages may be offered during the meeting. Wait until your East Timorese counterpart invites you to begin eating or drinking. Try to consume some of what is offered, as ignoring it may be interpreted as a sign of disrespect.
- Try not to interrupt someone or talk over someone if possible. It is also important to speak slowly, pause between points, and provide your East Timorese counterparts the opportunity to engage in the conversation. This can be done by asking people for their input or whether they have questions.
- Consider using visual aids for your presentation, such as handouts with simple bullet points, diagrams and pictures. These may help in effectively conveying ideas that may otherwise be misunderstood via verbal communication.
- Face-to-face meetings are preferred when possible as over-the-phone business meetings can seem impersonal.
Relationship Oriented
Building and maintaining relationships are an important part of East Timorese business culture. In turn, people tend to want to know a great deal about their potential business partners. Your East Timorese counterpart may ask questions that seem irrelevant or unrelated as a way to get to know you. These interactions are an important part of establishing the relationship and building the trust and loyalty needed to support future business.
In order to deepen a relationship, try to be as personable as possible. Avoid appearing stiff and cold but maintain a sense of modesty and humbleness. Encourage inclusive and constructive conversations by commenting on matters that can be acted upon and suggesting improvements. Bear in mind that relationships can disintegrate if one is overly critical, harsh or direct in their communication style.
is common throughout East Timor as people prefer to work with those that they know and trust. Personal contacts can be crucial to success; therefore, finding a third-party introduction is often a helpful strategy. This third party may also be important in helping resolve or mediate problems, should they arise. East Timorese may invest much time and effort into their relationships. Therefore, if during negotiations your company changes the representative who is in contact with them, you may have to start over in order to cultivate a new relationship and deal.
Gift giving is another important component to building relationships in business (see Gift Giving in Etiquette). Professional relationships established between individuals or organisations are often honoured during special occasions, particularly Christmas and New Year. It is common for business partners to exchange Christmas cards or gifts (typically food products shared among employees). It is also customary for East Timorese to offer gifts and souvenirs to local and foreign visitors as a gesture of welcoming or gratitude. These typically include a tais (also known as salendang), which is a colourful handwoven textile, often presented by being draped around the recipient’s neck. Should you receive a gift, it is important to acknowledge and appreciate the gift as a sign of respect to your East Timorese counterpart.
Other Considerations
- Tetum and Portuguese are the official languages of Timor-Leste. However, English is often used in business contexts and Indonesian is common (particularly in regional and rural areas). Knowledge of local languages may assist in both the business and social context.
- Doing business in East Timor continues to be a challenge, with Timor-Leste ranking 181 out of 190 economies in terms of ease of doing business.1 Enforcing contracts, registering a property, getting credit and resolving insolvency are particularly challenging, though reforms have been put in place to help alleviate such challenges.2
- As indirect communicators, East Timorese often avoid direct refusals or negative responses and instead may provide an ambiguous response. This is often seen as a way to maintain harmony and politeness. Pay attention to the tone and body language of your East Timorese counterpart, ask open-ended questions, and aim to avoid giving direct or blunt responses to questions.
- More senior members of a company may not always provide a response to feedback if it is requested by someone perceived as hierarchically below them.
- Business attire for men is traditionally modest, consisting of a collared shirt and long pants. More formal attire is expected when visiting senior business leaders or political leaders.
- For women, business attire typically includes a dress, a blouse with a skirt past the knees or pants.
- On special occasions, both men and women may wear the traditional tais as a sarong. Meanwhile in more regional areas, people may incorporate traditional clothing in their daily outfits.
- On the Corruption Perception Index (2023), Timor-Leste ranks 70th out of 180 countries, receiving a score of 43 (on a scale from 0 to 100). This perception suggests that the country’s public sector is somewhat corrupt.