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

PM Lawrence Wong asked older and younger business leaders to build on one another’s strengths, rather than treating succession as a simple handover. He said renewal must be planned and deliberately nurtured because companies need both experience and fresh thinking to stay strong.

Senior leaders should prepare successors by sharing their experience and networks. They should gradually give younger leaders greater responsibility and room to make decisions, including occasional mistakes. Younger leaders, in turn, must earn trust by contributing new ideas and capabilities while listening to what made the business successful.

Wong said friction between generations can happen, so businesses need active cooperation, mentorship and opportunities for younger people to step forward. He urged the Singapore Chinese Chamber of Commerce and Industry to connect generations. The goal is a stronger organisation and leaders ready to carry it forward.

Leadership succession means preparing new leaders to take responsibility when current leaders eventually step aside. It matters because companies depend on continuity, but also need fresh judgment and capabilities. Wong called succession one of the toughest challenges in business, especially for family-owned enterprises.

He said renewal should begin early and be deliberately nurtured. Senior leaders can share their experience and networks, then gradually hand over responsibilities. Younger leaders need space to exercise judgment, make decisions and sometimes make mistakes. This creates a practical transfer of knowledge and trust, rather than a sudden change at the top.

Leaving succession to chance can weaken a company’s future. Founders may remain closely tied to the business, but holding on too long can prevent successors from developing. Wong said successful leadership is measured by leaving a stronger organisation and a ready next generation.

When senior leaders keep control for too long, the company can lose the benefits of leadership renewal. Wong warned that younger leaders may not get enough opportunity to build their capabilities. This can leave the organisation dependent on established habits and less able to respond to new conditions.

The mechanism is a lack of responsibility and decision-making space. If successors are not gradually trusted with real work, they cannot practise judgment or learn from mistakes. At the same time, new ideas may struggle to take root because existing leaders continue to dominate decisions. The company risks losing both talent and momentum.

Wong also warned that the business may become less prepared for the future. This matters as companies face AI, changing supply chains and new worker needs. Planned handovers, shared experience and cross-generational cooperation can help preserve strengths while making room for change.

Singapore has a small domestic market, with a population of about six million people. The article does not provide this figure, so it is general background rather than an article fact. A limited local customer base means companies can reach a ceiling sooner if they sell only within Singapore.

The key mechanism is scale. A business serving one small market has fewer potential customers and less room to spread fixed costs, test products or grow revenue. Local demand can support a company, but it may not provide enough expansion opportunities for every ambitious or specialised firm.

That is why Wong urged Singapore firms to build connections outside the country. He highlighted ASEAN, India, the Middle East and other markets, alongside China. Overseas growth can widen customer demand and make companies less dependent on Singapore’s limited home market.

Wong said real business transformation goes beyond adopting the latest AI tool. A company can add AI and still operate much as it did before. Meaningful change happens when leaders question assumptions and redesign the way the organisation creates value.

The mechanism involves several connected changes. Firms may rethink internal processes, redesign jobs and alter their business models. They also need workers to acquire new skills. AI can support these changes, but technology alone does not create better results if old structures and habits remain unchanged.

This matters because AI and other new technologies are changing how companies operate and compete. Wong urged firms to transform before circumstances force them to. The Singapore Chinese Chamber of Commerce and Industry has been helping small and medium-sized enterprises adopt AI, digital solutions and sustainable practices, while the Government continues supporting businesses and workers.

Singapore companies can look beyond China to ASEAN, India, the Middle East and other markets. Wong urged firms to build new connections outside Singapore because wider international reach can create more opportunities for growth and trade.

Geographic diversification works by spreading a company’s customers, partners and business exposure across several markets. If demand weakens or conditions become difficult in one market, activity elsewhere may help reduce the overall impact. The approach does not remove risk, but it avoids placing too much dependence on a single country or region.

Wong highlighted this as one of two major tasks for companies, alongside transforming before change forces them. He backed the Singapore Chinese Chamber of Commerce and Industry’s new International Advisory Panel. The panel is intended to help businesses expand abroad and develop connections beyond China and Singapore.

Companies in small economies often need international trade because their home markets offer limited customer demand. Overseas networks can connect them with buyers, suppliers, partners and opportunities that are unavailable domestically. The article does not explain this economic principle directly, but it highlights the need for Singapore firms to build connections beyond the country.

The key mechanism is wider reach and flexibility. Companies can sell into more markets, form business relationships abroad and respond when supply chains change. New connections may also help firms understand local conditions and find routes for expansion. International activity therefore supports growth while reducing dependence on one market.

Wong urged Singapore businesses to look beyond China towards ASEAN, India, the Middle East and other markets. He also warned that shifting supply chains are reshaping business. The implication is clear: firms must transform early and build overseas links before change forces them to react.