April 04, 2025

Under the Radar: (SPECIALS) In the family business - Hong Leong Asia’s CEO on the firm’s growth, governance and succession planning processes

28 minutes

It’s all about family businesses today as we speak to Hong Leong Asia, a part of Singapore-based conglomerate Hong Leong Group.

The firm’s beginnings can be traced back to the early 1900s, when Hong Leong Group’s founder the late Kwek Hong Png boarded a cargo vessel in Xiamen at the age of 16, with only an $8 ticket, a straw mat, a quilt for warmth.

While life was tough, the founder held hopes of making it big in Southeast Asia as he made the arduous journey over to Singapore. That’s where he worked at a hardware store for years before starting Hong Leong in 1941.

The firm was first set up as a general trading firm dealing in ropes, paints, ship and rubber estate supplies. Eventually, the business grew to become one of Singapore’s largest conglomerates, sprawling across industries from property, hotels, financial services and trade and industry.

At its subsidiary Hong Leong Asia, the company prides itself as a diversified Asian multinational with core businesses in the construction and transportation sectors and gross assets of over S$40 billion.

Its business can be classified into two broad categories, namely building materials and powertrain solutions.

Financially, the firm had in February reported a net profit of S$38.2 million for its second half ended December, up 12.2 per cent on the year. The company’s profitability was said to be boosted by strong performances in its powertrain solutions and building materials units, amid improved market conditions in Singapore and Malaysia. But how does the firm assess the road ahead given ongoing trade tensions around the world?

Meanwhile, the issue of governance in family businesses has also come into the spotlight recently – so how does Hong Leong Asia approach the topic of governance and succession planning to ensure that the legacy of its founder lives on?

On Under the Radar, Money Matters’ finance presenter Chua Tian Tian posed these questions to Stephen Ho, Executive Director & CEO, Hong Leong Asia.

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