Top 500 family firms’ revenue up by 10% despite global slowdown: Study
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The two firms from Singapore among the 500 top family businesses listed in the study are Golden Agri-Resources and Yanlord Land Group.
PHOTO: ST FILE
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SINGAPORE – The world’s 500 largest family enterprises have grown their revenue by 10 per cent to US$8.02 trillion (S$10.7 trillion), despite the global economic slowdown, according to a new study.
Of the 500 listed in the study, 17 family firms are from South-east Asia, with two from Singapore.
Singapore palm oil firm Golden Agri-Resources was ranked 230th in 2021 and rose to 177th in 2023.
Local real estate developer Yanlord Land Group ranked 437th in 2021 and rose to 339th this year.
Known as the 2023 EY and University of St Gallen Family Business Index, the study found that the 500 largest family businesses had generated US$8.02 trillion in revenue and employed 24.5 million people across 47 jurisdictions.
The index is published once every two years and is based on a global ranking of 500 family-owned businesses according to their revenues.
The number of Singapore family businesses included in the study remained the same as in 2021.
Family businesses have certain traits that can help them do well, said Mr Low Bek Teng, EY Asean family enterprise leader.
“The agility trait that many family businesses have is a strong advantage as they can navigate and adapt to sudden shifts in the landscape and seize opportunities in the horizon better... The family businesses that continued to thrive in the face of disruptions tapped innovations to be relevant to their customers,” he said.
In the current environment of high inflation, high interest rates and geopolitical tension, family businesses need to stay agile and manage risks more effectively, Mr Low added.
The other countries from South-east Asia on the current list are Indonesia, Malaysia, the Philippines and Thailand.
The average age of board members across South-east Asia’s family enterprises was 62.
Having board members with an average age of 62 highlights the need for South-east Asia’s family enterprises to examine board renewal and transition to the younger generation, said Mr Low.
“There have been cases where family enterprises faced issues in transiting to the next generation due to governance challenges or internal conflicts. Conducting succession planning earlier and communicating regularly to manage differences will go a long way towards ensuring the long-term survival of the company,” he said.
