Family businesses are central to Asia's vibrant economy, with 85% of companies in the Asia-Pacific region being family-owned. However, as these post-World War Two businesses navigate the challenges of second or third-generation leadership, their long-term success is not guaranteed. This is where the accumulated wisdom and success stories of local entrepreneurs can be invaluable, offering critical insights to inspire and guide current and future family business leaders.

In Singapore, one such iconic figure is Mr Ho Kwon Ping, the Founder and Executive Chairman of Banyan Group Limited, previously known as Banyan Tree Group. The company is one of Asia’s largest multinational hospitality groups with 12 brands and nearly 100 hotels to date. In the newly launched book Behind the Banyan: Ho Kwon Ping on Building a Global Brand, author Aaron Low chronicles the valuable lessons of Mr Ho’s journey - from making tough choices, to crafting a strong brand and fostering a positive company culture. Through interviews with Mr Ho, Mr Low extracts powerful insights on leadership, values, and family succession that can equip Singaporean entrepreneurs and business leaders with the tools needed to build a company that matters.

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Source: SMU Business Families Institute Report: Rethinking Impact - Operationalising ESG in Business Families

At the book’s launch at Singapore Management University (SMU) on 21 May 2024, SMU President Professor Lily Kong described Banyan Group as “not just a hospitality giant” but a “testament to the power of vision, resilience and innovation”. She paid tribute to Mr Ho’s dynamic approach to managing a family business, which is largely rooted in the deep-seated values of sustainability, equality, fairness and cultural sensitivity, and explained that it was these same values that shaped those of SMU where he was founding chairman for 25 years.

During the event’s fire-side chat with SMU Professor Emeritus Annie Koh, Mr Ho candidly shared tips and experiences that shaped his approach to business and family life; from working in his father’s agriculture and food business Thai Wah, where he is currently Chairman of the Board, to building the Banyan Group alongside his wife, Ms Claire Chiang. He expressed his hope to leave a legacy and be an example of a harmonious and ‘sufficiently successful’ business that can last for many different generations.

Here are five insights shared by Mr Ho during the event that are pertinent to Asian family businesses and their leaders: 

1) Be a family-held business, not necessarily a family-run one

Mr Ho emphasises the crucial distinction between ownership and management, noting that family members may not always be the best candidates to lead the company. He explains that even if a third-party manages the company’s day-to-day operations, family members can still serve as custodians by offering guidance on long-term strategy, culture and values as company directors. 

Through this approach, a ‘family-held business’ is different from a ‘family-run business.’ It allows for a separation of roles to ensure the business’ longevity. As Mr Ho shares, “The family that holds the glue together provides the values, but does not necessarily have greater skills in managing the business. I think that the separation of roles is an important distinction if family businesses are to last”. 

For example, Mr Ho’s eldest son, Mr Ho Ren Hua, is now Chief Executive Officer (CEO) of Thai Wah, but he first worked at an international management consultant firm and played multiple roles in Banyan Group before taking the helm at his grandfather’s company. Meanwhile, Ren Yung ran her own sustainable fashion label before joining Banyan Group. She is now Senior Vice President of Brand and Commercial; a role that perfectly marries her own business experience with her deep understanding of the brand’s essence. The decisions that led to these respective roles, according to Mr Ho, involved multiple open conversations on succession, conflict resolution and an honest assessment of their suitability. Notably, his youngest son, Mr Ho Ren Chun, currently works as a lawyer in London but has shared that he is open to joining the family business in the future.

2) Understand and embrace the social dynamics within family businesses

Mr Low describes Mr Ho’s family as his “greatest source of strength.” Nonetheless, Mr Ho also shares that there are many  challenges in balancing multiple roles within a family business—being a father, husband, and business associate simultaneously. 

When an audience member asked for advice on navigating moments where home and work life coincide, he explained that some level of mindfulness is needed when things are ‘all over the place’. He says, "It is important to be above it all, and take it in your stride. This is both the hassle, the pain and the reward of being a business family."

Mr Ho also observes that many family business leaders focus on strategies and external circumstances while underestimating the impact of familial social dynamics on the business's health. This includes issues such as a father’s fear of decline with age or feelings of disrespect between parent and child that can affect decision-making and harmony in the company. Recognising the importance of family businesses to Asia, he notes, “Asia must navigate them successfully, otherwise we’ll see cases of big families falling apart”. 

3) Branding and authenticity are crucial for Asian businesses to survive

Mr Ho highlighted that unlike previous generations who focused on contract manufacturing, Asian entrepreneurs today understand the importance of establishing their own brand. This, he says, is essential for survival, especially when breaking into the global market. For consumer-oriented businesses, he suggests creating a product or service that is “genuinely Asian and that you can be proud of, instead of competing with those in the West.” Thai Wah, for example, focuses on premium Asian noodle brands in the Western markets, while Banyan Group has woven Asian heritage and design into the fabric of their Asia-based resorts to create a signature brand experience.

While he does not discount the immense challenge of entering overseas markets such as the United States, he remains optimistic given the recent demand for Asian consumer products. Attributing this to the purchasing power of the younger middle class in Asia, he says to Singaporean entrepreneurs: “The challenge is, what part of the market are you going to tap into? You need to map out what is happening in the world in terms of consumer demand, and where your product fits in. The opportunities now are huge. Everybody just needs to tap it in their own way.”

4) Prioritise purpose over passion and legacy 

Mr Ho traces his motivation to a deep-seated desire not to ‘sleepwalk through life,’ a quality evident since his teenage years. Instead of chasing overly ambitious goals or focusing on a specific industry or passion, he advises entrepreneurs to first find their ‘purpose’—personal qualities that evoke meaning and excitement each day, no matter how big or small. For him, this was in the form of a natural curiosity and a drive to rectify imbalances. These traits continue to define his business practices. 

He also emphasised that family businesses should strive to build legacies that are important for the world, and not just for themselves. This is a belief he and his wife Claire hold in high regard and put to work through their many sustainability initiatives. From actively preserving their resorts’ natural landscapes to providing quality education to their employees’ children, the couple is driven to create a meaningful impact and pass these principles on to each generation of Banyan Group leaders.

Their children already seem to be following in their footsteps and are practising the values of stewardship and sustainability in their own capacities. Since becoming CEO at Thai Wah, Ren Hua has expanded the company’s product range from starch-related food products to include tapioca-based bioplastics in a bid to address the urgent global need for sustainable packaging. Meanwhile, as Senior Vice President of Brand and Commercial, Ren Yung keeps Banyan Group’s founding roots on regenerative travel relevant to new generations of travellers. She also serves as a Steering Committee Member of the Singapore chapter of the Climate Governance Initiative which works to embed climate considerations into boardroom decision-making. This further underscores the family’s commitment to building a legacy that contributes meaningfully to the world’s well-being.

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Source: SMU Business Families Institute Report: Rethinking Impact - Operationalising ESG in Business Families

5) Institutions focusing on family businesses play an important role in Asia’s future

Mr Ho lauds the work done by family business-focused institutions like Business Family Institution (BFI) and Family Business Network (FBN), noting that, “tackling entrepreneurship and family business issues is critical to the success of a dynamic society and economy”. Looking forward, he posits an important question on longevity and the preservation of the values and culture. 

“It seems easy to say that family members must protect the family business, but down the road when the founders are not there, is the family's culture strong enough?” he asks.  

This is where institutions like the BFI and FBN play a critical role in uncovering the secrets behind sustaining a legacy. By studying successful family businesses in countries like Japan and Europe, with legacies spanning centuries, Mr Ho believes younger Asian businesses can glean valuable insights into fostering a culture that ensures long-term sustainability. “There is something very treacherous about the shift (in leadership)”, he explains, “and therefore I am glad that these groups are spending time on this issue.”