Family Businesses Power Global Growth as Southeast Asian Firms Gain Momentum

Family-owned enterprises remain a powerful engine of global economic growth. According to the 2025 EY and University of St.Gallen Global 500 Family Business Index, the world’s 500 largest family businesses generated a combined revenue of US$8.8 trillion — a 10% increase compared to the 2023 index. Collectively, they employ 25.1 million people across 44 jurisdictions.

To put their economic influence into perspective, if these companies were grouped as a single economy, their aggregate revenues would rank as the third-largest in the world, trailing only the United States and China.

Published biennially, the Global 500 Family Business Index ranks the world’s largest family-owned businesses by revenue, shedding light on their sustained growth and global impact.

Europe Leads, Asia Gaining Ground

Europe continues to dominate the index, accounting for nearly half (47%) of the listed companies. North America follows with 29%, while Asia makes up 18%.

In terms of industry representation, retail leads with 20% of the businesses, followed by consumer products (19%), advanced manufacturing (15%), and mobility (9%).

Seventeen Southeast Asian companies made it to this year’s top 500 list — including three from Malaysia, five from the Philippines, four from Thailand, three from Singapore, and two from Indonesia.

These enterprises generated a combined revenue of over US$146 billion and employed nearly 875,000 people — up from US$119 billion and 850,000 employees in 2023.

Low Bek Teng, EY Asean Family Enterprise Leader, commented: “Family enterprises have long been the backbone of ASEAN’s economy. Typically, these families reinvest a significant portion of their profits back into the business, enabling sustainable, long-term growth.

“To continue on this trajectory, it’s vital for these businesses to remain attuned to global geopolitical risks and embrace emerging technologies such as artificial intelligence to capitalise on new opportunities.”

A Malaysian Perspective

Bernad Yap, Malaysia Private Tax Leader at EY, noted the country’s growing appeal as a hub for high-value family investments: “Since the COVID-19 pandemic, we’ve observed a rise in both liquidity and private equity investments — globally and in Malaysia — particularly in sectors such as digital services, supply chain, electronics, and food security. The emergence of Malaysia’s own family-owned enterprises is a promising sign.

“The introduction of the Family Office framework in Forest City aims to professionalise the management of complex frontier investments. Establishing formal family office structures in Malaysia presents an opportunity to attract global funds and regional family wealth, enhancing the country’s investment ecosystem.”

Growth Through Agility and Legacy

Despite facing a challenging global business landscape, family enterprises continue to rely on mergers and acquisitions (M&A) as key drivers of growth. Nearly half (47%) of the companies featured in the index completed at least one M&A transaction in the past two years. Of the deals disclosed, 34% exceeded US$250 million.

The long-term value orientation and adaptability of family businesses give them a strategic edge. Notably, 34% of the companies have been in operation for more than a century, and 85% for over 50 years. At the far end of the spectrum, a Japanese company on the list boasts over 400 years of history, while two European firms have operated for more than 300 years.

Professor Thomas Zellweger from the Center for Family Business at the University of St.Gallen remarked: “Family-owned businesses possess a unique ability to adapt and prosper amid changing conditions. Their focus on long-term survival, coupled with a commitment to operational efficiency and prudent financial management, continues to position them for enduring success.”