Asia's Rising Stars: Leading for 2037

Panel Composition & Core Themes

• Four "rising stars" of Asian business led the session: Con Hui Quek (APAC Capital Partners), Alan Law (Park Hotels Group), Raymond Rufino (Philippines office space), and Isaiah Schultz (Schultze Private Equity).
• The discussion focused on three primary areas: generational shifts in business operations, the integration of philanthropy/sustainability vs. lip service, and future opportunities for expansion and innovation in Asia.
• A key overarching theme was the transition from legacy family business models toward professional management, with an emphasis on separating ownership from management for long-term longevity.

Individual Perspectives on Business & Family Dynamics

• Con Hui Quek:
  • Established a separate private equity fund to optimize business performance and separate family ownership from professional management.
  • Confirmed that his family does not invest in his fund, nor do they sit on the board, allowing for completely independent decision-making.
  • Avoids China investments due to high asset multiples (average EV/EBITDA of 30x) and intense competition from State-Owned Enterprises (SOEs).
  • Focuses APAC Capital Partners on Southeast Asian residential markets, specifically "starter homes" (400-500 sq. ft.) serving the local urbanization trend in Malaysia, Thailand, and Indonesia.
• Alan Law:
  • Transformed a single family-owned hotel into a 16-hotel group across the Asia-Pacific region, starting at age 23-24.
  • Enforces a strict family policy of having only one family member manage one business unit to prevent internal conflict.
  • Plans to expand geographically into Australia, Japan, and the Maldives, moving beyond the saturated markets of Singapore and Hong Kong.
  • Predicts the sharing economy (e.g., Airbnb) will struggle in Singapore due to strict land laws and tax policies, though it remains a monitoring priority.
• Raymond Rufino:
  • Pivoted his family's Philippine real estate business from pure cost control to a sustainability-first model, driven by demands from Fortune 500 tenants.
  • Convinced stakeholders that green building strategies are essential for long-term economic viability and tenant retention.
  • Currently leading investments in technology for real estate, including 3D printing for construction to reduce costs in remote island developments.
  • Launched the Philippine Green Building Council as a "CSR 2.0" initiative to align corporate resources with industry-wide environmental standards rather than ad-hoc charity.
  • Highlights the Philippines as a top social media market with rapid adoption of technology, noting the opportunity to leapfrog legacy cash-based payment systems via Bitcoin and crypto.
• Isaiah Schultz:
  • Shifted family investment focus from mature Western markets (3% returns) to frontier markets like Mongolia, Ethiopia, Sri Lanka, and Georgia to achieve higher returns and greater societal impact.
  • Targets underserved markets where international investors overlook opportunities due to historical perceptions of risk (e.g., civil conflicts in Sri Lanka and Georgia).
  • Focuses on middle-class infrastructure in frontier markets, rejecting the strategy of building luxury high-rises that do not match local demand.
  • Views Mongolia as a stable Central Asian opportunity with strong local partnership potential despite infrastructure challenges.

Market Analysis & Future Opportunities

• Real Estate Trends:
  • China faces a temporary oversupply of hotels (50-60% occupancy) due to previous government-driven construction booms, though demand is recovering at 15-20% year-over-year.
  • Singapore's residential market is currently volatile due to government cooling measures, with current valuations considered closer to a bottom.
  • The commercial real estate sector is adopting "co-working" models, with Raymond's group investing in Fly Spaces as a technology-driven disruptor.
• Technology & Disruption:
  • Panelists identify technology as the primary growth vector outside traditional real estate, specifically in e-commerce and mobile infrastructure.
  • Frontier markets are seen as ideal for "leapfrogging" legacy systems, such as mobile fleet tracking in Mongolia or crypto payments in the Philippines.
  • Blockchain technology is viewed as a scalable innovation across sectors, distinct from the volatile asset class of Bitcoin, though investment exposure varies by comfort level.
• Regional Focus:
  • Panelists are actively avoiding China due to high valuations but see Southeast Asia as a cohesive "rising middle class" theme.
  • Sri Lanka is identified as a high-opportunity market due to the "overshadowed" narrative of past civil conflict masking current stability and entrepreneurial spirit.

Governance, Diversity & Philanthropy

• Gender Diversity:
  • The panel acknowledged the lack of female representation at the table, noting a pre-scheduled female participant could not attend.
  • Raymond Rufino reported his office is 75% female and chairs an Urban Land Institute initiative to empower women moving from mid-level to top-tier leadership roles.
  • Alan Law noted that family decisions regarding women's leadership are based on individual choice rather than capability, though he co-presides with a female lawyer in a 50/50 leadership split.
• Next-Generation Leadership:
  • Consensus exists that entitlement based on lineage is unacceptable; leadership roles must be earned through character, merit, and performance.
  • A separation of ownership and management is recommended to ensure professional recruitment filters out family members who lack requisite ability.
• Corporate Social Responsibility (CSR):
  • Con Hui Quek noted that CSR is currently driven by his family foundation rather than his private equity fund, which is focused on growth.
  • Raymond Rufino redefined CSR from charitable donations to strategic industry alignment, citing the Philippine Green Building Council as a model for industry-wide impact.
  • Isaiah Schultz integrates "making a difference" into the investment thesis, arguing that capital in frontier markets creates higher societal value than in mature Western economies.