The Sy, Zobel, Gokongwei, Aboitiz, and Co families join this year’s Ernst and Young’s (EY) top 500 family enterprises.
Using publicly-available data to compile the list, the 2023 EY and University of St. Gallen Family Business Index showed the Sys’ SM Investments Corp. ranked 225th with its $8.5 billion revenue.
The Zobels’ Ayala Corp. was ranked 381st with its revenue of $4.7 billion. The Gokongweis’ JG Summit Holdings Inc. ranked 385th, with a revenue of $4.7 billion. The Aboitizes’ Aboitiz Equity Ventures Inc. ranked 400th with revenue of $4.5 billion. Lucio Co’s Cosco Capital Inc., ranked 476th with a revenue of $3.6 billion.
The list, issued every two years, is led by the Walton family’s Wal-Mart Inc. whose revenue stood at $572.8 billion.
EY said the five Filipino families’ businesses together with the 495 others in the list collectively grew their revenues by 10 percent amid the ongoing global economic slowdown, generating a consolidated $8.02 trillion, while employing 24.5 million people across 47 jurisdictions.
EY said these family businesses are growing faster than the global economy, highlighting their vital role in the global economy.
“Longevity and stability continue to be a staple among the companies listed on the 2023 index, as more than three-quarters (76 percent) have been around for more than 50 years, and nearly one-third (31 percent) are more than a century old. This is further reinforced by their board structures, with almost one-quarter of all board seats (23 percent) being held by family members and nearly half (45 percent) having family members as CEOs,” the auditing and consultancy giant. In the Philippines EY is represented by SGV and Co.
In Southeast Asia, 12 family businesses joined the list apart from the Philippines – Indonesia (2), Malaysia (4), Singapore (2) and Thailand (4).
“Together, they hire close to 850,000 people, and the average age of board members across these family enterprises is 62 years,” EY said.
Kristopher Catalan, SGV assurance partner and Philippine EY private leader, said Asean family enterprises may need to look into involving more NextGen leaders “who can give new and diverse insights on emerging risks, advancements in technology and other mega-trends.”
“While family enterprises remain resilient with the headwinds coming from everywhere from technological and economic disruptions to geopolitical risks, for family enterprises to thrive in the new challenges of today, they need to ensure that young leaders are learning the ‘tricks of the trade’ early — the very things that made their companies successful and resilient throughout the years – while also providing fresh views on how the new world works,” he said.
