Two SG companies enter Top 500 Family Businesses
All of them generate a combined $10.72t in revenue.
The 2023 EY and University of St. Gallen Family Business Index included Golden Agri-Resources Ltd. and Yanlord Land Group Ltd. in the list. The two companies got 177th and 339th place, respectively.
The Family Business Index ranked the companies based on their revenues, with Wal-Mart Inc. getting first place. All 500 family businesses generate SG$10.72t (US$8.02t) in total revenue, a 10% increase from the total revenue recorded on the last year's Index.
READ MORE: 20 Hottest Startups of 2023
EY said the family businesses' contribution in revenue to the global economy would be the third largest among the club of 19 "trillion-dollar economies" in the world, after the US and China.
The Family Business Index also said that 62 years is the average age of the board members in 17 family businesses in Southeast Asia, including two in Singapore.
Low Bek Teng, EY Asean Family Enterprise Leader, said that it highlighted the need for board renewal to transition to the younger generation. But a good succession plan is needed as these enterprises grow in size and complexity.
Low also said that due to the current economic challenges from geopolitical risks, rising inflation, and interest rates, they must take immediate and additional steps in bringing a younger team to protect their assets and investments.
"They will need to understand the relevant risks and how each of these risks may impact their businesses. Bringing in the next generation to work and learn alongside the current board and management will help the younger team better appreciate the intricacies of the business," Low added.