Make room for next generation while tapping elders’ experience: PM Wong to Chinese business leaders

SINGAPORE - Companies must plan ahead for leadership renewal and ensure that every generation has the opportunity to contribute, Prime Minister Lawrence Wong told an audience of Chinese business leaders on Oct 30.

While handing over the reins is not always easy, holding on for too long carries its own risks, he said at the 120th anniversary gala dinner of the Singapore Chinese Chamber of Commerce and Industry (SCCCI), the apex body of the Chinese business community here.

“Renewal cannot be left to chance,” he said. “It must be planned for, and nurtured deliberately.”

He made these points on leadership renewal in both English and Mandarin to an audience of more than 1,000, which included representatives from the Government, business community and trade associations, at the Fairmont Singapore.

“Friction may at times arise between different generations of leaders. Therefore, we should not just focus on passing the baton. More importantly, we must find ways for different generations to work together and build on one another’s strengths,” he said in Mandarin at the start of his speech, where he also acknowledged SCCCI’s contributions to Singapore’s progress.

He quoted a Chinese saying: “New waves rise and carry the ones before them forward”, stressing that the next generation must step up for society to continue progressing.

Switching to English, he noted that succession is one of the toughest challenges faced by many businesses, particularly family-owned enterprises.

“Actually, succession is the biggest challenge everywhere, including in politics. But it is a challenge in business too,” he said.

Founders would have spent decades building their companies, which often reflect their judgment, relationships and often, their personal identity, he added.

“But holding on for too long carries its own risks. Younger leaders may not have the chance to develop their capabilities. New ideas may struggle to take root. And the business may find itself less prepared for the future,” he said.

PM Wong said senior leaders should prepare their successors by sharing their experience and networks, and gradually giving them greater responsibilities.

“Give them the space to exercise their own judgment, make their own decisions, and sometimes even make mistakes.”

Younger leaders must earn that trust by bringing fresh ideas and new capabilities. While technology and artificial intelligence (AI) may give them access to knowledge at their fingertips, they should not assume they know better than their elders, he said.

Instead, they should be willing to listen and learn about what made the business successful.

PM Wong said this principle of renewal extends beyond individual companies to institutions such as SCCCI, as he urged the chamber to connect younger and older business leaders, facilitate mentorship and create opportunities for the next generation to step forward.

“Because the true test of successful leadership is not what we achieve during our lifetime,” he said. “It is whether we leave behind an organisation that is stronger, and a new generation of leaders who are ready to take it forward.”

PM Wong also highlighted two other areas the companies have to work at - transforming before circumstances for them to and building new connections outside of Singapore.

He noted that firms today face new technologies such as AI, which are changing how companies operate and compete.

These changes cannot be stopped, he said, and the task is to get ahead of them.

He noted that SCCCI has been helping small and medium-sized enterprises adopt AI and digital solutions, as well as sustainable practices. It is also helping workers acquire new skills.

He encouraged the chamber to continue its efforts, adding that the Government will keep supporting businesses and workers through these changes.

But real transformation goes beyond adopting the latest AI tool, he cautioned.

A company can introduce AI and still operate in much the same way as before, he said. The bigger gains come when firms rethink their processes, redesign jobs and even change their business models, all of which require a mindset change.

“We must be prepared to question assumptions that have served us well in the past,” he said, adding that this is often hardest when things are going well, because success breeds comfort and eventually complacency.

On building new connections, PM Wong called on companies to broaden networks and diversify markets.

Singapore’s small domestic market means its companies have always had to look abroad for customers, partners, ideas and opportunities.

SCCCI understood this from the start, he said, and has built extensive networks overseas, particularly in China, which should continue to be deepened.

With the global economy becoming more fragmented and trade and investment flows shifting, companies must seize new opportunities that are opening up, he said.

China remains an important market, but Singapore companies must venture out early, take calculated risks and establish presnce for the long term across ASEAN, India, the Middle East, Africa and Latin America, he added.

This is another area that the Government will support companies in, he added.

PM Wong also welcomed SCCCI’s new International Advisory Panel (IAP), with Minister Chee Hong Tat as patron, which aims to support companies in going abroad.

He said that the spirit of enterprise, the willingness to look beyond immediate interests and the commitment to contribute to Singapore’s progress have sustained SCCCI for 120 years, and will carry it foward.

Likewise, Singapore must keep adapting to a changing world, finding new opportunities, and preparing for the future, he said.

In his speech, SCCCI president Kho Choon Keng said in Mandarin that the newly-established panel will bring together the insights and expertise of international business leaders, provide its members with forward-looking insights into global markets and help to create new opportunities for all.

He added: “As Singapore assumes the ASEAN Chairmanship next year, we look forward to seizing this opportunity to work hand in hand with all to build a more prosperous, stable and sustainable region.”