Malaysians are less likely than the Chinese to pass on family businesses to second generation members, according to an entrepreneurship expert from University Brunei Darussalam, the Borneo Bulletin reports.

In a speech at a recent seminar entitled Leading & Managing Family-Owned Enterprises, Dr Habrizah Hussin, a expert in entrepreneurship and SME development, said that cultural and business values between the Chinese and Malay communities play a key role in the lifespan of family businesses.

"In Brunei, where the Malays are concerned, these businesses are all first-generation businesses with only a few having gone into the second or third generation," Hussin was quoted as having said.

Hussin reportedly noted that this could have been caused by the lack of higher education or an underprivileged social orientation, where parents do not see the longevity of an enterprise as a priority as long as their children are well educated. Over 50 per cent of businesses in the Sultanate are run by families.

Another important concern would also be the sentimental attachment to "holding the throne," which Hussin advised should be let go if a company is to become continuously successful.

"There is no definite answer as to when to let go but if you have groomed your successor and you have gone through the process, you will definitely know when the right time is to let go," Hussin added.

The event was attended by over 40 owners of family offices and other business leaders.