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The percentage of family businesses in Singapore that expect growth in the next two years is higher than the percentage of global businesses, according to a new survey.

Professional services firm PwC’s 10th annual Global Family Business Survey found that Singaporean family businesses in general remain buoyant for the near term, despite last year’s attempts. Nine out of ten companies expect at least steady growth over the next two years at a rate higher than the global average. More than two thirds of those surveyed already expect growth this year.

The positive mood among Singaporean family businesses contradicts the less widespread growth compared to the global pandemic in the fiscal year before the pandemic (49 percent versus 55 percent) and the more pronounced decline in sales expected due to Covid 19.More than half of respondents – 56 Percent – expected sales to decline from 46 percent worldwide.

Overall, PwC’s recent survey results on family businesses reflect the results of the latest Global CEO survey, which showed widespread confidence in both global economic growth and the future wealth of their own company. This is a clear turnaround from the particularly dire outlook for ASEAN business leaders in the year leading up to the pandemic. Almost one in five local family businesses is now expecting rapid and aggressive growth this year.

By comparison, only 13 percent of family businesses worldwide and 16 percent in the Asia-Pacific region expect rapid growth this year, a trend that will continue into next year. 30 percent of family businesses in Singapore expect rapid growth in 2022 compared to 21 percent globally. Virtually none of the Singaporean heads of state and government surveyed expect a decline by next year, while only 3 percent expect a decline this year, compared with 9 percent across the APAC region.

To drive growth in the next two years, the family business in Singapore most often identified expansion into new markets or customer segments as the top priority (73 percent versus 55 percent worldwide, albeit as the top priority), followed by “Rethinking the business model, adapt, change “. Here, the respondents in Singapore differed significantly from their colleagues, for whom rethinking the business model only had the fifth highest priority worldwide.

More congruent was the local and global priority for improving digital skills, cited by more than half of both groups. However, it has been shown that Singaporean family businesses lag behind their global counterparts in terms of capabilities. According to the survey, only 29 percent of Singapore residents consider their digital skills to be strong, compared to 38 globally. Additionally, only 13 percent have completed their digital journey, compared to 19 percent globally.

“While digital has been on the business agenda in recent years, it is worrying that family businesses in Singapore are still lagging behind the digital curve. The main reasons for this could be the high implementation costs, the inadequate internal digital infrastructure and the shortage of skilled workers, ”said Ng Siew Quan, APAC director for entrepreneurial and private companies at PwC Singapore, who suggested family businesses take advantage of the new perspectives of the next generation digital transformation.