Which families are behind Asia’s wealthiest businesses? Since many are reputedly private and control interests concealed behind tangled webs, it’s not easy to make sense of these businesses.
Kudos then to Forbes Asia for attempting such a complex task. Last December, the magazine published its first ever attempt to rank the continent’s richest dynasties. While several names are not surprising, some revelations have caused a stir among Asia’s shakers and movers.
Only three
For the Philippines, a disappointing fact is that only three business families made it to the list. The Sy family of SM, with an estimated worth of $12.3 billion, placed thirteenth, the highest of any Filipino dynasty.
The family’s varied interests, particularly in retail, are well-known, and it is instructive that Forbes found it fit to mention the family also has a stake in a private power firm, which might not be as surprising as it first appears, considering that many Filipinos reportedly frequent SM malls to enjoy the air-conditioning during summer, an indictment of our ineffective national electricity grids.
The Zobel family ranked 35th on the list, their estimated worth a third that of the Sy’s, valued at $4.2 billion. Built in the late 1800s, Ayala Corporation is likely the oldest family business still existing in the country today, with Jaime and Fernando Zobel—the most well-known among the seventh generation—leading the conglomerate now and with the next generation members increasingly coming into the fold.
The Aboitiz family, with an estimated worth of $3.6 billion, placed 44th. Known for its interests in power and transportation, Aboitiz is reminiscent of the rise of Ayala, starting out also in the latter half of the 19th century in Cebu. The family is respected for its highly professional stance, for while it holds reunions for almost 500 relatives every year, only the best and brightest are invited and groomed to take on leadership roles. Right now, the fourth- and fifth-generation members are at the helm, but with a structured, formal, transparent process, the transition to the next generation should not be a huge problem.
What happened to the other families, many of whom are household names? Simple. Remember the saying that a family’s fortune rises and falls within three generations? Forbes Asia took this to heart and decided to include only families that have lasted at least three generations.
Philippine history
Because of the twists and turns of our history as a nation, it is not surprising that corporations with a Spanish lineage have become the longest-lasting. With proper governance, Zobel and Aboitiz have ensured they are flourishing today.
The question would be: Why did the other Hispanic-based clans disappear? The answers are varied: family conflicts, money problems, lack of foresight, greed, incompetent heirs, etc.
Back to history. Unlike their Spanish counterparts, the Chinese in the Philippines were generally discriminated against during the Spanish occupation. Most of the Filipino-Chinese tycoons today had ancestors who left China to escape the communist rule, but this exodus happened relatively recently, just a little bit before the last half century.
The Sy family made it to the list because some of founder Henry Sy’s grandchildren are already in the family business. As for the other families, such as the Gokongweis, the Gotianuns, the Tans, and so forth, at this time, power still resides mainly in the hands of the second generation. Only time will tell if the younger ones can continue the family legacy.
Topnotchers
Family conflicts is one reason why businesses fall apart. But Forbes has included India’s Ambani family of Reliance fame, who managed to make it to third place despite two brothers inheriting their father’s wealth and then choosing to go their separate ways after the latter’s death.
Rounding up the top five are: South Korea’s Lee family (Samsung), Hong Kong’s Lee family (Henderson), Thailand’s Chearavanont family (CP Group) and Hong Kong’s Kwok family (Kwok).
Mainland China, the wealthiest today, has no representative on the list, since businesses are still in the hands of the first generation and generated only recently when the nation opened its doors to the world.
The country with the most number of wealthy clans? India, with 17 out of 50.
Queena N. Lee-Chua is on the Board of Directors of Ateneo de Manila University’s Family Business Development Center. Get her book “Successful Family Businesses” at the University Press (e-mail msanagustin@ateneo.edu). E-mail the author at blessbook.chua@gmail.com.