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Singapore's family businesses say profits take priority over legacy: survey
MOST family businesses in Singapore believe that continued profitability is more important than preserving their legacy, a report by KPMG and CPA Australia showed on Wednesday.
Eight in 10 family businesses interviewed believe that family legacy, though important, should not be allowed to get in the way of business growth and profitability.
But this comes as most family businesses in Singapore falter at the first transition. Only 13 per cent survive to be passed on to the third generation.
Chiu Wu Hong, head of enterprise at KPMG in Singapore, said: "Informal governance structures that may have worked well for the founders of the business may not meet the needs and interests of a new generation. With limited external influence, there could be questions about whether family businesses are allowing for rigour in their governance and if they are overlooking the added value of non-family members."