BusinessMirror September 30, 2018

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Sunday, September 30, 2018 Vol. 13 No. 351

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RANDALL HOWARD, Lockheed Martin’s aeronautics director for business development and the man behind the business success of the F-16 fighter jet, pauses from attending the 2018 3rd Asian Defense, Security and Crisis Management Exhibition and Conference. NONIE REYES

BUSINESS OF WAR AFP modernization attracts global defense industry players to Manila By Rene Acosta

HE ongoing modernization program of the Armed Forces of the Philippines (AFP), which is being undertaken in three phases, is attracting the world’s top suppliers of defense and military equipment, including Lockheed Martin, and a roster of other American firms.

The F-16 is the most advanced fourthgeneration fighter jet in the world that the Philippines has so long desired to acquire for its Air Force.

JOHANN68 | DREAMSTIME.COM

T

The ambitious modernization program is indicative of the rising defense and military spending in Southeast Asia, a region that has already positioned itself in the center of the Asia Pacific, as the top buyer and importer of military hardware. Southeast Asia’s military spending binge, including by the Philippines, has prompted Lockheed Martin and other top defense contractors in the world to remain upbeat, business-wise, in the region, Continued on A2

After amassing $22T, Asia’s rich face succession problems

H

By Klaus Wille | Bloomberg News

AVING a grandfather with four wives can make for some complex succession issues, as Cheong Wing Kiat found when running his family’s Singapore-based drug company a few years ago. The patriarch and his three cofounders had more than 20 heirs with competing agendas. Buying out about half helped, but involved tough negotiations and family fights. Now, the number of shareholders is climbing again and Cheong, 59, worries for the next generation. “Within the next 10 years, we

will have to do another pruning,” he said. “But it will not be my task, and I am happy about that.” After building vast empires, Asia’s moneyed are, sometimes for the first time, confronting uncomfortable questions as they prepare for complex inter-generational transfers of both wealth and business. A new report released on

PESO EXCHANGE RATES n US 54.2510

Tuesday by UBS Group AG and Campden Wealth predicts a coming “seismic shift” as inheritances are handed down to younger generations globally. But the need for succession planning is particularly pressing in Asia Pacific, where only 39 percent of family offices have a strategy in place, the lowest proportion of any region, it found. “The main factor why succession planning often has been overlooked in Asia is that the money CHEONG WING KIAT’S extended family photo during Chinese New Year 1969.

CHEONG WING KIAT FAMILY ARCHIVE

See “Asia’s Rich,” A2

n JAPAN 0.4785 n UK 70.9820 n HK 6.9416 n CHINA 7.8750 n SINGAPORE 39.6658 n AUSTRALIA 39.0933 n EU 63.1644 n SAUDI ARABIA 14.4670

Source: BSP (September 28, 2018 )


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