AUGUST 28 — In 2001, Kamariah Mat Yatim found herself at the lowest point of her life. Abandoned by her husband and left to care for eight children, she returned to her parents’ home with little more than the children she described as her “only wealth”.
For 17 days, the family lived in a small hut without electricity or running water. Food was scarce, and the cries of a child asking for milk became almost unbearable. At one particularly desperate moment, Kamariah contemplated ending her life and those of her children.
Her mother’s voice stopped her and pulled her back from the brink.
That moment became a turning point. Kamariah decided that if she could not change what had happened to her, she would change what happened next.
She began with only 10 pandan plants.
There was no sophisticated business plan, large inheritance or network of investors. She had basic farming tools, a willingness to work and access to small loans from Amanah Ikhtiar Malaysia. Her financing gradually increased from RM2,000 to RM50,000 as the business expanded.
Those 10 pandan plants eventually grew into a large agricultural operation. Kamariah became widely known as the “Jutawan Pandan”, or Pandan Millionaire.
Her success is an inspiring Malaysian story. Yet behind the familiar narrative of perseverance lies a question that receives far less attention: what happens to the business when the founder can no longer lead it?
For years, Kamariah worked from early morning until after Maghrib. Before machinery and drones became part of the farming operation, she carried loads of kangkung and pandan weighing between 100kg and 150kg.
Her body now bears the cost of those years. She reportedly spends between RM2,000 and RM3,000 each month on treatment for health problems involving her joints and nerves.
Her children witnessed those sacrifices. However, seeing the hardship involved does not necessarily encourage the next generation to continue the business. Some may have different career aspirations or may not be prepared for the physical demands and uncertainty of agricultural work.
Asked about the future of the business, Kamariah’s response reflects the dilemma faced by many founders. After she is gone, the decision will be left to her children.
It may sound like a private family matter. In reality, it reflects a wider challenge facing family businesses in Malaysia.
A 2022 benchmarking report by KPMG Private Enterprise and the STEP Project Global Consortium found that 75 per cent of the Malaysian family businesses surveyed had only one generation actively involved in the business.
This does not mean that all these businesses are at immediate risk. However, it suggests that many may continue to depend heavily on their founders, with limited participation from the next generation.
A business may own land, equipment and valuable products. It may have loyal customers and a recognised name. But these assets do not automatically produce a successor who is willing and capable of leading.
A contrasting experience can be seen in the leadership journey of Siti Khawa Jannah Nasuha, the chief executive officer of Mak Siti Products.
Established in 1981, Mak Siti is a Malaysian family business built around herbs, spices and traditional food products. When Siti Khawa entered the company, her father, a former army officer, did not immediately place her in a comfortable executive position.
Despite having an accounting degree from Australia, she was expected to learn the business from the ground up.
She began in accounts payable, processing invoices and payments. She worked with employees who had accumulated decades of operational experience. She also obtained a Goods Driving Licence and personally drove company vehicles to deliver products to stores.
These responsibilities may appear unrelated to the work of a chief executive. In reality, they became part of her preparation for leadership.
She learned how products moved from the factory to retailers, how payments affected cash flow and why the practical knowledge of experienced employees could not be replaced by a university qualification.
More importantly, she had to earn the trust of employees who had served the company long before she arrived.
Her experience demonstrates an important principle in family business succession: ownership may be inherited, but leadership must be developed.
A family name can provide entry into the business. It cannot automatically provide credibility, operational competence or the confidence of employees.
This is where many family businesses become vulnerable. Founders may spend decades building their companies but postpone succession conversations because they are emotionally difficult.
Some fear that discussing succession suggests they are ready to retire. Others assume that one of their children will eventually take over. The children, meanwhile, may never have been asked whether they are interested or given enough exposure to make an informed decision.
Succession then happens only when illness, exhaustion or an unexpected crisis forces the family to act. By that stage, there may be no prepared successor, no agreed division of responsibilities and no clear process for transferring the founder’s knowledge.
The problem cannot be solved by simply naming a successor. Effective succession requires years of preparation.
The next generation needs exposure to different parts of the business, including the less glamorous work that keeps it operating. They must understand customers, suppliers, production processes, employees and the values associated with the family name.
They should also be given genuine responsibilities and opportunities to make decisions. A successor who is never trusted to decide will remain dependent on the founder, regardless of age or academic qualifications.
At the same time, founders must accept that continuity does not mean preserving everything exactly as it was.
Siti Khawa’s “Anak Founder” presence on TikTok shows how a successor can bring an established family brand to a younger audience. Digital platforms allow the new generation to communicate the identity of a traditional business in ways that contemporary consumers understand.
This does not mean abandoning tradition. When managed carefully, innovation gives tradition another route to survive.
Malaysia should therefore treat family business succession as more than a private concern. These businesses support employment, local supply chains and community development. When a viable business closes because no successor is prepared, the loss extends beyond the founding family.
Entrepreneurship agencies, financial institutions and business associations can play a greater role by providing succession programmes for small and medium family enterprises. These programmes should cover successor development, family governance, ownership transfer, conflict management, estate planning and digitalisation.
Family discussions are equally important. The KPMG and STEP Project report found that only 16 per cent of the Malaysian family businesses surveyed had a family council.
A family council does not need to be highly formal. It can provide a regular and structured space for family members to discuss future leadership, ownership expectations and the involvement of the next generation. Starting these conversations early may prevent misunderstandings from becoming conflicts later.
Not every family business must remain under the leadership of a family member. Children should not be forced to inherit responsibilities that do not match their interests or abilities.
Families can consider professional management, partnerships, employee succession or a carefully planned sale.
What matters is that the decision is made deliberately while the founder is still able to transfer knowledge and assess the available options.
Kamariah’s pandan enterprise and Mak Siti Products emerged from different circumstances. One grew from a mother’s determination to keep her family alive. The other moved across generations through discipline, practical exposure and adaptation.
Together, their stories show that building a business and preserving it are two different entrepreneurial achievements.
Malaysia celebrates founders who rise from hardship, and rightly so. But we must also ask what will remain when they can no longer carry the business on their shoulders.
A family legacy should not depend on one person’s final heartbeat. If succession begins only when the founder is ready to leave, the family may already be too late.
* Dr Nadiah Mahmad Nasir is a senior lecturer at the Faculty of Business & Communication, Universiti Malaysia Perlis. Her research focuses on family business succession in Malaysia. She may be reached at [email protected].
** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
