Spread the news

PETALING JAYA: The Covid-19 pandemic is a wake-up call to family enterprises to establish a succession plan and prepare for the next unexpected personal or worldwide crisis, according to Rockwills Advisory Services Sdn Bhd general manager Jason Tham Jiessen (pix).

Tham said many small enterprise founders meet their family members more often during the stay-at-home and movement control order periods that give them the space to talk about the future and the structure of the business. Hence they can adapt to the pandemic and make plans for what follows.

“Many business owners did not foresee that the Covid-19 pandemic could last so long. Enquiries on estate and business succession in company planning surged in June and July. They asked us about planning, business successors, business models and how they want to solidify their position in the market,” he told SunBiz in an interview.

He said the pandemic is teaching family businesses many lessons about preparedness, agility, and adaptation.

“Now they realise they cannot put all eggs in one basket. They have to ensure when certain restrictions happen, they have backup plans for the business to operate without any disruptions.

“Many business owners expect the pandemic and the new norm to last for another two to three years. They have moved their offices to their homes and only use online platforms to communicate with employees. They are already used to this working environment,” Tham said.

He said this includes having many of their workers work remotely and adapt to a new virtual environment. Some businesses shut down temporarily while others changed their business model completely.

“Some positions are removed, such as front desk staff as payment and orders have shifted online. Many family enterprises have reduced staff strength to invest in developing and enhancing electronic and online systems,” he said.

Tham recommended three major steps that family-owned businesses should follow, to create a viable succession plan including ownership succession, management succession, and distribution of income.

“The goal of the family business founders on succession planning is to unite the family members and to ensure the family business is still managed by the family after the founder is no longer around.

“Most of the cases we handled are clients with private limited business entities. There are two important roles in private companies, the shareholder and the director. Usually, the business owner is also the director and the shareholder.

“We will advise them on how to pass the shares to the next of kin to avoid fragmentation of the shares and who should be the director to run the business,” Tham said, adding that without a succession plan, the business owner creates a time bomb that not only destroys the company but also tears apart the family.

He said one of the challenges for a business owner, especially when the owner has a majority share, is the continuation of the business within the family itself.

“Many local businesses fail to train their successors or future generation to run the family business. When their children do not want to run the business we will suggest that the client identify a key person to operate the business.

“It is not necessary to have the next of kin to run the family business. The founder’s children can be the shareholders to receive the dividend. For operations, they can hire CEOs and directors to run the business. Porsche and Volkswagen are good examples of family business continuation,” Tham said.

There are two timelines for succession planning, he said – the family trust is for those who want an 80-year planning which is meant for three generations, while the family foundation is for 10 or more generations, which is perpetual.

Click to rate this post!
[Total: 0 Average: 0]

Spread the news
CONTACT US : support@melodyinter.com
Previous articleSuccess: The Insight Story – Get the learning right, and the earnings will follow
Next articleDiversifying vaccine portfolio expedites country’s rate of vaccination


  1. Wonderful blog! I found it while surfing around on Yahoo News.
    Do you have any suggestions on how to get listed in Yahoo News?
    I’ve been trying for a while but I never seem to get there!
    Thank you

  2. Magnificent beat ! I wish to apprentice while you amend your website, how could i
    subscribe for a blog website? The account helped me a acceptable deal.
    I had been tiny bit acquainted of this your broadcast provided bright clear concept

  3. Wonderful article! That is the type of info that are supposed
    to be shared around the net. Disgrace on the seek engines for now not positioning this put up upper!

    Come on over and visit my site . Thank you =)

  4. Its like you read my mind! You appear to
    know a lot about this, like you wrote the book in it or something.
    I think that you can do with some pics to drive the
    message home a bit, but instead of that, this is excellent
    blog. A fantastic read. I’ll certainly be back.

  5. Does your site have a contact page? I’m having problems locating it but,
    I’d like to send you an email. I’ve got some recommendations for your blog you might be interested in hearing.

    Either way, great site and I look forward to seeing it improve over time.

  6. Howdy! This is my first visit to your blog!
    We are a group of volunteers and starting a new project in a community in the same niche.
    Your blog provided us beneficial information to work on. You
    have done a extraordinary job!

  7. Wow that was unusual. I just wrote an extremely long comment but after I clicked submit
    my comment didn’t appear. Grrrr… well I’m not writing all that
    over again. Regardless, just wanted to say fantastic blog!

  8. Hey! This is kind of off topic but I need some advice from an established blog.

    Is it very hard to set up your own blog? I’m not very techincal but I
    can figure things out pretty fast. I’m thinking about making my own but I’m not
    sure where to start. Do you have any ideas or suggestions?
    Many thanks

  9. Hello there! I know this is somewhat off topic but I was wondering if
    you knew where I could find a captcha plugin for my comment form?
    I’m using the same blog platform as yours and I’m having problems finding one?
    Thanks a lot!

  10. This is very interesting, You’re a very skilled blogger.
    I’ve joined your rss feed and look forward to seeking more of
    your magnificent post. Also, I’ve shared your website in my social networks!

  11. I do believe all the ideas you have introduced in your post.
    They’re really convincing and will definitely work.

    Nonetheless, the posts are very brief for starters.
    May you please lengthen them a bit from next time? Thank you
    for the post.

  12. I was recommended this web site via my cousin. I’m now not certain whether or not this
    publish is written by him as no one else know such designated approximately my
    problem. You’re incredible! Thanks!

  13. Hi there, I think your site might be having
    internet browser compatibility issues. Whenever I
    take a look at your site in Safari, it looks fine
    however, when opening in I.E., it’s got some overlapping issues.
    I just wanted to give you a quick heads up! Apart from that,
    great website!

  14. I’m very happy to discover this website. I want to to thank you for your time just for this fantastic read!!
    I definitely appreciated every bit of it and i also have you saved as a favorite to see new
    information on your site.

  15. Good post but I was wanting to know if you could write a litte more on this
    topic? I’d be very grateful if you could elaborate
    a little bit more. Cheers!

  16. Thanks for finally talking about > Covid pandemic a
    wake-up call to family-owned businesses on importance
    of succession planning | MELODYINTER < Loved it!


Please enter your comment!
Please enter your name here