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Singapore family firms target double-digit growth in 2025

By Newby

Rising Confidence in Growth Despite External Challenges

A recent report by Deloitte highlights the resilience and forward-looking strategies of Singapore's family businesses. The findings reveal that 28% of these enterprises are open to private equity or outside investment, signaling a growing willingness to explore alternative capital sources.

Despite the increasing external risks, more than half of Singapore’s family businesses are optimistic about their future performance. Specifically, 54% of local respondents anticipate over 10% revenue growth in 2025, a significant jump from 24% in 2024. This optimism comes amid a backdrop of challenges such as cyber threats, economic uncertainty, and tariff-related impacts.

Key External Risks Identified

The survey identified several key external risks that Singapore-based firms are facing:

  • Cyber threats: 72%
  • Economic uncertainty: 64%
  • Tariff-related impacts: 63%

These risks underscore the need for robust risk management strategies and adaptability in the face of changing market conditions.

Strategic Focus Areas for Growth

Looking ahead, Singapore family enterprises are focusing on several key areas to drive growth over the next 12 to 24 months:

  • Domestic market share gains: 43%
  • Cost optimisation: 40%
  • Investments in generative AI and technology: 38%

Partnerships and alliances also play a crucial role, with 38% of businesses exploring this avenue. Additionally, 27% are planning international expansion, primarily targeting the Asia-Pacific region (90%), followed by Europe (53%) and the Middle East (50%).

Ownership and Capital Plans

The report also sheds light on the ownership and capital plans of Singapore family businesses. Key points include:

  • 28% open to private equity or outside investment
  • 24% aiming to increase non-family ownership among managers
  • 15% considering initial public offerings

Most of the respondents come from first-generation (26%) or second-generation (43%) firms, highlighting the importance of succession planning and capital strategy in ensuring long-term sustainability.

Global Perspective on Family-Owned Businesses

Globally, family-owned businesses with over US$100m in annual revenue represent 22% of the total large-company universe. These businesses are projected to grow by 22% between 2020 and 2030. Their combined revenue is expected to increase by 84% to US$29t during the same period, outpacing the 59% growth of non-family businesses.

This trend underscores the significant role that family-owned enterprises play in the global economy and their potential to drive sustained growth in the coming years.