Among Asia's wealthy, a "generational shift of wealth" has emerged as the biggest topic, but a considerable number have not even set clear succession plans. Analysts say preparations for succession remain relatively weak as the older generation continues to exert strong control over assets and investment decision-making.
Swiss private bank Lombard Odier said in a recent report that, in a survey of high-net-worth individuals in the Asia-Pacific region, 39.4% of respondents answered they have "no asset succession plan at all." Only 26.9% said they had a complete succession plan in place.
The survey targeted about 390 high-net-worth individuals with investable assets of $1 million (about 1.5 billion won) or more. The surveyed regions were Japan, China, Hong Kong, Singapore, Taiwan, Thailand, Malaysia, the Philippines, and Australia.
Bloomberg, citing the report, said Asia's older wealthy generation still holds firm control over investment and asset management. It also noted a sense that succession issues are viewed too complacently.
In fact, Asia has seen a series of cases where conflicts erupted during succession. In Singapore's richest family, conflicts among brothers and between father and son emerged publicly, while Hong Kong's leading real estate tycoon Zheng family was embroiled in controversy over liability issues and management instability. Analysts say founders with assets worth tens of trillions of won are weighing whether to hand management control to their children or shift to a professional management system.
Generational differences in perspective were also clear. Only 13.6% of baby boomers cited "the smooth transfer of ownership and management control" as a key task, but the figure reached 37.4% for millennials and 30% for Gen Z.
The gap was wider in views on communication within families. Only 5% of baby boomers answered that "a lack of open dialogue can be a major stumbling block in the succession process." In contrast, Gen X (32.6%), millennials (32.2%), and Gen Z (30%) singled out the absence of communication as a major issue at a rate of about one in three.
By region, succession preparedness was particularly low in Japan, the Philippines, Malaysia, and Hong Kong. About half of respondents in these areas said they "have no succession plan or it is not applicable."
The report said, "This may reflect the confidence and control of the baby boom generation, but paradoxically it may also indicate a lack of openness among the older generation," adding, "Differences in perception between generations and a lack of communication will become major tasks in the asset succession process going forward."