Each of them is family owned. The Fung, Ambani, Torii, and Lim families respectively control their business empires across Asia, collectively worth over US$116.4 billion. As Asia plays an increasingly important role in the world economy, the future of international markets will likely be shaped in no small part by the decisions of Asia’s major family owned firms.
When one thinks of the term ‘family firm’, the image of a neighbourhood family-run restaurant or sundry store comes to mind. Mom and/or Dad are behind the counter, while the children help out with stacking shelves or washing dishes.
In fact, just over half of the 30 biggest firms in 27 developed countries are family-owned, as are 40 percent of the S&P 500 in the United States. Around 85 percent of businesses in Southeast Asia valued at US$1 billion or more are founder- or family-run; in India, that figure stands at 67 percent, while in China, it is 40 percent. The 15 wealthiest families in Hong Kong control assets worth 84 percent of Hong Kong’s GDP; in Malaysia, they control 76 percent, and in Singapore, just under 50 percent.
These patriarch-led businesses drove Asia’s post-colonial economic boom, yet many of these organisations face great challenges. Succession, technological disruption, and family disputes are among some of the issues that these firms must navigate. These challenges apply equally to businesses big and small; whether it is the family-run corner store, or a powerful conglomerate.
WEALTH BEYOND THREE GENERATIONS
There is a Chinese proverb which says, “Wealth never survives three generations” (富ä¸è¿‡ä¸‰ä»£). It sums up a widely held belief across Asia: the first generation builds the family fortune, the second reaps the benefits, and the third squanders the wealth.
This story is from the February 2020 edition of SME Magazine Singapore.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the February 2020 edition of SME Magazine Singapore.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Cloud- Driven Recovery
With digital transformation being an important catalyst for Malaysia’s inclusive economic recovery, cloud computing plays an important role that enables . the country to acquire the advantages that technology offers.
Live Werkz: Venturing Beyond Southeast Asia
Being forward-looking in its approach has enabled LiveWerkz Pte Ltd to survive the Covid-19 pandemic, says vice president Tricia Ng. Despite being a Singaporean company, the company does not focus its efforts in the Southeast Asia region. Instead, Greater China and the Middle East become the foundation for its businesses. Ng tells SME the company’s strategies in facing a challenging future.
Singapore's Go Digital Well Received
More than 78,000 of Singapore’s SMEs have participated in the country’s Go Digital programme since its 2017 launch, with more about 40,000 becoming participants last year, including 30,000 that received Covid-19 incentives from the government.
Accountants And SMEs: Creating A Sustainable World
For SME finance professionals, ‘sustainability’ is about achieving longevity. However, there is a confusion over different definitions of sustainability. They recognise the growing importance of tackling sustainability issues but lack the understanding of how doing this can be integrated into day-to-day practices within the finance function.
Rebuilding Our Mental Well-Being In Sales
Sue Barrett is a writer, training provider and entrepreneur who founded Barrett in 1995 to positively transform the culture, capability and continuous learning of leaders, teams and businesses.
Omicron: A Test Of Resilence
Global manufacturers have been facing a supply chain crisis since the start of the year. Just as it appeared that the situation was beginning to stabilise, the Omicron Covid variant reared its ugly head.
Silver Lining In The Cloud
Although RAS Security Pte Ltd’s business was adversely affected by the pandemic, there’s a silver lining in the cloud. The occurrence has necessitated the company to innovate its business model to remain viable and led to the discovery of new areas of security service provision. Managing director Tejdeep Singh shares his journey.
Accelerating Artificial Intelligence
Singapore is introducing two new public artificial intelligence (AI) programmes as part of the strategy to use technology for social and economic good, involving a total allocation of S$680 million to accelerate AI research. The latest initiatives require a funding of S$180 million.
Three Tips For Hiring Top Talents
BIG EGOS LOSE TALENTS First up, when it comes to hiring, you must put aside your ego.
The Economy Is Recovering, But What About People?
All signs are pointing towards a speedy recovery. Contrary to what this writer initially predicted, the economy seems to be genuinely recovering.
