{"id":287704,"date":"2025-11-16T23:41:08","date_gmt":"2025-11-16T23:41:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/287704\/"},"modified":"2025-11-16T23:41:08","modified_gmt":"2025-11-16T23:41:08","slug":"when-silence-isnt-golden-succession-challenge-looms-for-asias-richest-families","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/287704\/","title":{"rendered":"When silence isn\u2019t golden: Succession challenge looms for Asia\u2019s richest families"},"content":{"rendered":"

SINGAPORE \u2013 When Mr Zong Qinghou, founder of the Chinese beverage empire Wahaha, died in February 2024, public tributes poured in for the self-made tycoon who was once China\u2019s richest man. <\/p>\n

But a year later, that reverence gave way to turmoil when his three \u201csecret children\u201d from an extramarital affair <\/p>\n

sued his only publicly acknowledged daughter over their inheritance<\/p>\n

<\/a>, thrusting the family \u2013 and the Wahaha brand \u2013 into the spotlight for the wrong reasons. <\/p>\n

The case has become a cautionary tale on how silence and secrecy in succession planning can cost business magnates not only family harmony, but also the reputation of the companies they spent decades building. <\/p>\n

More founders in Asia now acknowledge the need for proper succession planning after seeing the \u201cspectacular failures\u201d of families who did not get it right, said Mr Chew Mun Yew, head of UOB Private Bank. <\/p>\n

He was speaking at a recent briefing to launch the Asia Generational Wealth Report 2025: Succession In A New Era, which UOB Private Bank jointly authored with the Boston Consulting Group (BCG) and the NUS Business School. <\/p>\n

\"\"<\/p>\n

Head of UOB Private Bank Chew Mun Yew said more high-net-worth clients are interested in succession planning now.<\/p>\n

PHOTO: UOB<\/p>\n

Mr Chew said UOB has nearly doubled its number of high-net-worth clients since 2021, with close to 70 per cent of them being business owners. <\/p>\n

This mirrors the staggering growth in Asia, whose share of global private wealth has surged from 6 per cent to 21 per cent over the past 25 years, he said. <\/p>\n

By 2029, this figure is <\/p>\n

projected to reach US$99 trillion (S$129 trillion)<\/p>\n

<\/a>, a quarter of global wealth, according to the report, which compiled findings based on surveys with 228 high-net-worth individuals across seven Asian markets including Singapore, and nine in-depth interviews with ultrarich families. <\/p>\n

But recognising the need for succession planning is one thing; acting on it is another. The study shows that more than a third of family business founders are reluctant to let go, as they are deeply attached to their companies and want to continue steering them or exerting control through veto rights. <\/p>\n

Of the 46 founders surveyed, 37 per cent said they will hand over the reins only if poor health leaves them with no choice. Also, 37 per cent of them said they prefer to decide family wealth matters independently, and 28 per cent said they have prepared wills that are not disclosed to their heirs. <\/p>\n

\u201cWith many of Asia\u2019s fortunes still relatively young, limited generational experience in succession planning can make families more prone to delayed disclosure \u2013 leaving them vulnerable to conflicts,\u201d the report noted. <\/p>\n

\u201cComplex family structures or extramarital heirs add further volatility, and secrecy often triggers disputes.\u201d<\/p>\n

The good news is that younger or next-generation business leaders are more open to adopting a transparent approach. <\/p>\n

Only 13 per cent of the 69 surveyed said they make decisions on wealth matters alone. In fact, 87 per cent hold family meetings and 52 per cent go a step further by establishing family charters \u2013 written documents that set out the ground rules for managing family affairs, from business ownership and governance framework to succession planning and conflict resolution. <\/p>\n

Mr Ernest Saudjana, a senior partner at BCG who was also at the briefing, said families are becoming more open to the idea of using family charters as a form of governance. <\/p>\n

\u201cVery often, the angle is not so much about wealth transfer. It\u2019s about how to build a legacy and make sure the family business (survives) this third- or fourth-generation \u2018curse\u2019,\u201d he said, referring to a commonly held notion that wealthy families often struggle to preserve their wealth beyond more than two generations.<\/p>\n

One example cited in the report is Royal Selangor, the Malaysian pewter-maker now in its fourth generation of family leadership. <\/p>\n

The company has had a family charter in place since 2002, spelling out details like when one must retire and how often the family should get together for retreats, according to an article on IMD Business School\u2019s website. One notable rule is that family members must work elsewhere and gain experience for at least two years before qualifying for a job in Royal Selangor. <\/p>\n

\"\"<\/p>\n

Mr Ernest Saudjana, senior partner at BCG, spoke at the launch event for The Asia Generational Wealth Report 2025. <\/p>\n

PHOTO: UOB<\/p>\n

The study noted that having such clear rules can help families align their expectations and prevent disputes from destabilising the family business. <\/p>\n

Associate Professor Yupana Wiwattanakantang of NUS Business School, a specialist in family capitalism, said many families surveyed still prefer their businesses to be helmed by a family chief executive as they fear losing control to an outsider. <\/p>\n

According to the report, 72 per cent of the founders see their children as likely successors, although 28 per cent of them acknowledge a lack of interest from their heirs, and 24 per cent believe their heirs are under-prepared. <\/p>\n

Prof Yupana said a company\u2019s longevity counts on whether it is led by the best-qualified person, and this person should be appointed based on meritocracy, not birthright. Hence, families should not conflate ownership and leadership, she said. <\/p>\n

\"\"<\/p>\n

Associate Professor Yupana Wiwattanakantang of NUS Business School said succession planning is a good chance to set the right mindset for the next generation. <\/p>\n

PHOTO: UOB<\/p>\n

Beyond the transfer of wealth and leadership, she said families must also focus on the transfer of knowledge \u2013 ensuring that the founders\u2019 experience, values and understanding of what makes the business succeed are passed on to the next generation.<\/p>\n

Succession planning, she added, is a good opportunity to set the right mindset for the next generation, encouraging them to think long-term, sustain the family legacy, and develop a sense of purpose, not entitlement. <\/p>\n

\u201cLike what the Japanese say: You sacrifice yourself, but the house will live.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"SINGAPORE \u2013 When Mr Zong Qinghou, founder of the Chinese beverage empire Wahaha, died in February 2024, public…\n","protected":false},"author":2,"featured_media":287705,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[45,49,48,133,131,132],"class_list":{"0":"post-287704","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-ca","10":"tag-canada","11":"tag-finance","12":"tag-personal-finance","13":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/287704","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=287704"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/287704\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/287705"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=287704"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=287704"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=287704"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}