Asia–Pacific
Family businesses have played an exceptional role in the dynamic
economies of the Asia-Pacific region and will continue to do
so. This year, EY features two such businesses in the yearbook
— Singapore’s Eu Yan Sang and Australia’s Ray White. These
companies are excellent examples of family businesses being
nurtured by successive generations and going on to become
global businesses. There are many examples of family businesses
like these two in the region, and they will continue to thrive and
prosper as successful family businesses. In the coming years, we
envisage many of these businesses will seek new opportunities
outside of their home geography. Indeed, we think that a key to
being successful will be the need to take the step of promoting
their businesses in global markets, just as Eu Yan Sang and Ray
White have done. If they succeed in doing so, they will reap the
rewards economically. Connecting and building relationships with
like-minded families in other locations will accelerate this growth.
Ian Burgess
Asia-Pacific
Family Business Leader
“Family businesses have
played an exceptional
role in the dynamic
economies of the AsiaPacific region and will
continue to do so.”
152 | EY Family Business Yearbook 2016
Succession will, of course, continue to be a big issue for many
family businesses in the region. Many of them are now reaching a
critical stage of their development: they are transitioning control
to the next generation. Of course, this is much more of an issue
for family businesses in the ASEAN region. With the exception
of Hong Kong, China’s family businesses, which have grown in
the last 20 to 30 years and with a smaller number of potential
successors, have other more pressing concerns; and perhaps
their number one concern is the management of their wealth and
associated governance structures. Many are setting up family
offices to address this and we expect this trend will continue,
even with the slowdown in the Chinese economy.
There are many other trends we see for family businesses in
addition to cross border expansion and succession. These include
intergenerational wealth management, philanthropy, involving
external management, financing for growth and a growing
focus on taxation. The focus of Government on revenue and tax
has amplified the attention of tax collection in areas outside of
corporation taxation, and we are seeing governments focusing
on family businesses and their entities and structures. We are
also seeing some Governments consider new taxes such as
inheritance tax, and this is likely to move further up the tax
agenda in the years to come.
Regional family businesses will continue to hire more senior
managers from outside of the family, and the professionalization
of management is to be welcomed. Family businesses in Hong
Kong were the first to bring in professional managers, and we are
seeing family businesses in many other countries following the
trend. This process will only accelerate in the years ahead, and
such professionalization is vital if family businesses are to remain
competitive in local, regional and global markets.
Governments in the region are focusing more on
entrepreneurship and innovation to drive economic growth and
create jobs, and they are increasing their promotion and support
of family businesses in their jurisdiction. The sector is incredibly
important to their economies, and governments should continue
to support families through constructive policies that help this
critical segment of the economy.
Overall, family businesses across the region have shown
extraordinary resilience during difficult times. There is little
doubt they will continue to do so in the years ahead, regardless
of the political and economic environment.
Ian Burgess
[email protected]
EY Family Business Yearbook 2016 | 153