Asia's ultra-wealthy face succession planning gaps, DBS study finds

Ultra-high-net-worth families across Asia are leaving themselves vulnerable by failing to establish robust succession and contingency frameworks, according to a comprehensive study by DBS. The findings underscore a significant gap between the region's entrepreneurial success and the institutional structures needed to preserve wealth across generations.

The research indicates that succession planning remains a persistent challenge, with many family-controlled enterprises lacking clear strategies for leadership transitions. In Singapore and across the broader Asia-Pacific region, this weakness exposes businesses to operational disruption and threatens long-term value preservation during periods of organizational change.

A key barrier to effective planning emerges from founder psychology, the study notes. Patriarch and matriarch figures frequently postpone succession arrangements because they wish to maintain operational control, even as advancing age makes transitions inevitable. This reluctance can create governance vacuums and complicate the handover process when it eventually occurs.

Crisis preparedness represents another blind spot among Asia's wealthy families. Many have not developed contingency plans for market volatility, geopolitical shifts, or other destabilizing scenarios that could threaten asset preservation. The absence of such frameworks leaves substantial fortunes exposed to unforeseen challenges.

The DBS report suggests that addressing these gaps through professional advisory services, formalized governance structures, and early stakeholder engagement could help Asia's ultra-wealthy families navigate transitions more effectively and safeguard their legacies.