Building a 100-year family enterprise

Beyond just succession, this demands institutionalisation, governance, and a global mindset. By Young Jin Yee

- By Young Jin Yee

As Singapore celebrates its 60th birthday and passes the reins to the new generation of leaders, so are many of the Singapore businesses that were founded during our early years of nation-building.

Family-owned businesses form the backbone of Singapore's and South-east Asia's economies, accounting for more than 60 per cent of the listed companies on the Singapore Exchange and 80 to 90 per cent of the large companies in South-east Asia.

Our UBS Asian Family 500 index has shown that family businesses' share price performance has consistently outperformed that of non-family businesses over the last 20 years in Asia, delivering a 212-basis-point higher return on invested capital on average over the long run, reflecting greater focus on long-term value creation.

Based on UBS analysis, 70 per cent of Asia-Pacific family-owned businesses are currently in their first and second generations, with the average age of the board members across South-east Asia family enterprises being 62, according to the 2025 EY and University of St Gallen Global Family Business Index.

According to McKinsey, an estimated US$5.8 trillion of wealth is expected to change hands by 2030 in Apac. The mindset is also evolving, as observed in our annual UBS Billionaire Ambitions Report over the past decade.

Wealthy multi-generational families have become more global with homes, families and businesses spread across different countries.

One of the greatest challenges highlighted by the billionaires is fostering in their heirs the values, education and experience required to take over the family business. At the same time, the heirs have their own aspirations and interests outside of the family business.

Preparing for a smooth succession of the family business and wealth transition is imminent, as only 12 per cent of global family-owned enterprises make it to the third generation, according to a Gallup report.