Kuala Lumpur, 23rd July 2019 – MasteryAsia will be running the first ever family business convention called ‘The Asian Family Business Convention 2019’ to help family business owners to better manage common family business challenges in Asia. Through this convention, the organization will be introducing their Family Business Advisory Services to Malaysian family business owners.
The Asian Family Business Convention 2019, first of its kind in Asia aims to discuss the challenges frequently faced by family businesses in Asia and to educate family businesses on how to deal with these challenges so that their businesses will continue to experience growth and success through generations to come.
The convention will be helmed by best-selling New York Times author and award-winning speaker, Dr. Tom Deans, the author of “Every Family's Business”-12 Common Sense Questions to Protect Your Wealth, selected by the New York Times as one of the Top Ten Books Business Owners Should Read.
Having the industry knowledge and expertise, Dr. Tom Deans was invited by MasteryAsia to share his perspective and experience related to the complex topic of family business. Leveraging on his expertise, QuestCorp Global Group of Companies will be setting up its Family Business Advisory Firm in Malaysia.
Lack of Succession Plan to Forge Lasting Legacy
Research conducted by PricewaterhouseCoopers (PwC) Malaysia found that 80% of Malaysian family businesses want to protect the business as it is the most important family asset, and 73% want to ensure the business stays in the family. Given this ambition, continuity is the key to creating and leaving a legacy of a successful family businesses passed on through the generations.
However, this ambition may be hindered by a few issues currently being experienced by Malaysian family businesses. For instance, family businesses in Malaysia lack strategic succession planning and most ideas in regards to handovers are informal and unsaid. In fact, PwC Malaysia found that only 23% of Malaysian family businesses have a robust, formalized and communicated succession plan. Malaysian family businesses today are embracing a meritocratic approach of appointing next generation members in positions within the company, and expect them to compete on equal footing with other employees.
The reason that many family businesses in Malaysian do not see the necessity for solid legacy planning is because many founders of family business in Malaysia assume that their children will succeed them but fail to have open discussions about each party’s expectations. This often leads to internal arguments between family members about various issues like how the business should be run, the degree of involvement in the business of certain family members, the level of commitment of each family member and many more. Problems also arise when business owners rely too much on the direct transfer of assets to pass on their wealth and ownership to their children when they may not necessarily be the best or most competent people to take over the business.
Aware of these problems, MasteryAsia recognizes that these enterprises are the bedrock of the country’s economy. The Asian Family Business Convention 2019 will not only educate family businesses on legacy planning but will also address how these families can maintain good governance and a strong foundation while highlighting the challenges most commonly faced by family businesses.
Additionally, through Quest Family Business Advisory Services, family businesses will receive guidance in designing strong governance structures which will promote their continuity, developing policies to support effective decision making and communication, being educated in making strategic succession plans and leadership development, conducting effective generational transitions, preparing successors to take over and many more, through its Certified Family Business Advisors.
“Family businesses in Asia are facing numerous challenges. We would like to help them in forming strong foundations in succession planning and intergenerational wealth transfers. Ultimately, we would like these promising enterprises to have sustainable legacies and experience success through open communication as well as smooth transfers of wealth from generation to generation,” explains Chief Executive Officer of QuestCorp Global Group of Companies, Mr. KC See.
Quest Family Business Advisory Services’ mission is to help family business owners be better equipped to prepare their heirs for succession, to anticipate and manage any challenges that they might face and to make strategic plans- all of which will ensure the longevity of their businesses.
