Southeast Asia Family Conglomerates Face Declining Returns as Growth Pivot Accelerates

Southeast Asia family conglomerates remain central to the region’s economic landscape, particularly in Indonesia and the Philippines, but must adapt as returns weaken, Singapore’s Business Times reported, citing academics and advisers.

Experts highlighted three urgent priorities: expanding into growth sectors, introducing professional leadership, and strengthening early succession planning.

An EY-Parthenon analysis of 36 listed regional conglomerates showed that average annual total shareholder returns hit 31% in 2005–2014, beating global peers at 18%.

However, this fell to 9% in 2015–2024—around half the performance of comparable global groups—as Southeast Asia family conglomerates remained concentrated in regulated commodities and energy and lacked exposure to faster-growing technology and healthcare sectors.

The report cited Thailand’s CP Group as an example of a conglomerate pivoting into digital ventures and warned that AI, climate pressures and geopolitics are increasing the importance of governance, succession, and ESG risk management across the region.