By Sharen Kaur - April 8, 2025
KUALA LUMPUR: Family-owned enterprises remain a cornerstone of the global economy, with the world's 500 largest family businesses generating a combined revenue of US$8.8 trillion in 2024—a 10 per cent increase from the 2023 index—and providing employment to 25.1 million people across 44 countries.
This growth stands out against a backdrop of 3.3 per cent global gross domestic product (GDP) growth in 2023, underscoring the outsized impact of these businesses. On average, each company generated US$17.6 billion in annual revenue, with 80 per cent of them surpassing the US$5 billion mark.
Collectively, these enterprises would form the world's third-largest economy if measured by GDP, behind only the United States and China.
These insights are drawn from the 2025 EY and University of St. Gallen Global Family Business Index, a biennial report ranking the world's top 500 family businesses by revenue.
Europe continues to dominate the index, accounting for 47 per cent of the listed companies. North America follows with 29 per cent, while Asia contributes 18 per cent. By sector, retail leads with 20 per cent representation, followed by consumer (19 per cent), advanced manufacturing (15 per cent), and mobility (9 per cent).
The index also highlighted the growing strength of Southeast Asian family enterprises, with 17 companies making the list this year—up from previous years. These include Malaysia (3), Indonesia (2), the Philippines (5), Singapore (3), and Thailand (4).
Together, these Southeast Asian firms generated over US$146 billion in revenue and employed nearly 875,000 people, up from US$119 billion and 850,000 employees in 2023.
The three Malaysian family-owned enterprises on the list are YTL Corp Bhd, ranked at 306 (revenue: US$6.6 billion), followed by Genting Group at 343 (revenue: US$5.95 billion), and Kuala Lumpur Kepong (KLK) Bhd at 396 (revenue: US$5.06 billion).
The 2025 index reaffirms that family enterprises are not just surviving — they are evolving and leading the way in shaping a resilient and forward-looking global economy.
Bernad Yap, Malaysia Private Tax Leader, said, "Post-Covid, we have seen an increase in liquidity and private equity not only globally but also in Malaysia, particularly in investments related to the new era of digital services and connectivity, supply chains, electrical and electronics (E&E), and food security."
He added that Malaysia is witnessing the rise of its family enterprises and the introduction of the Family Office framework in Forest City is a step toward strengthening wealth management and attracting global capital.
"Establishing a formal family office structure in Malaysia will provide opportunities for global funds and regional family enterprises to manage their growing wealth from Malaysia and enhance the country's investment landscape," he said.
Low Bek Teng, EY Asean Family Enterprise Leader, emphasised that family enterprises have long been the foundation of Asean's economy due to their strong reinvestment strategies, which support long-term, sustainable growth.
"To continue their growth trajectory, it is important for family enterprises to be mindful of the global geopolitical risks on the horizon as well as the evolution of new technologies like artificial intelligence and leverage the opportunities that come with the disruptions."
Despite global economic uncertainties, mergers and acquisitions remain central to the strategic growth of family enterprises. Nearly 47 per cent of companies on the list engaged in at least one M&A deal in the past two years, with 34 per cent of disclosed transactions valued above US$250 million.
Long-term vision and adaptability continue to define these businesses. Over 85 per cent have operated for more than 50 years, and 34 per cent have surpassed the 100-year mark. Notably, a Japanese company on the index has been in operation for over 400 years, while two European firms have histories spanning more than three centuries.
Thomas Zellweger, a professor from the Centre for Family Business at the University of St.Gallen, noted, "Family-owned businesses have a remarkable ability to adapt and thrive in dynamic environments. The focus of family firms on their long-term survival, combined with high concern for efficiency and conservative financing practices, sets many of these firms up for continued success."
Source: https://www.nst.com.my/business/economy/2025/04/1198859/ytl-genting-klk-among-500-global-enterprises-collectively-raked
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