A recent survey by Sun Life Asia indicates that nearly three quarters of family business owners in Asia do not have a fully developed succession plan. The survey, conducted in October 2025 with 1,823 family business owners across Hong Kong, Indonesia, Malaysia, the Philippines, Singapore and Vietnam, highlights concerns about the future stability of these enterprises.
According to the findings, only 27% of business-owning families have a complete succession plan in place. While 94% intend to establish legacy plans for future generations, many remain underprepared. Another 25% reported having partial plans and 24% are still developing their strategies. Nineteen percent admitted they have no plan but intend to address it eventually.
The gap is particularly notable in Vietnam, where just 14% have structured succession plans—the lowest among surveyed markets—compared to Indonesia’s 39%, which is the highest. In Hong Kong and Singapore, the figures stand at 20% and 28%, respectively.
Family businesses form a significant part of Asia’s economy. They account for approximately 85% of companies in the Asia Pacific region and represent a substantial portion of small and medium-sized enterprises (SMEs), which make up about 97% of all regional businesses. These firms also comprise around 18% of the world’s largest family-owned companies.
David Broom, Chief Client & Distribution Officer at Sun Life, stated: “A huge intergenerational wealth transfer is already underway in Asia, so it’s vital that business owners take steps now to prepare for the future and safeguard their legacies.”
The study reveals that communication between generations regarding legacy planning remains limited. Only 44% of next-generation members involved in family businesses said older generations had fully communicated legacy plans with them; this drops to just 27% when the next generation is not actively involved.
Formal family meetings are the most common setting for these discussions (57%), followed by one-on-one formal conversations (52%) and informal talks (43%). Respondents indicated a preference for formal meetings (61%) as an ideal forum for such planning.
Protection and long-term growth are priorities for these families. Nearly seven out of ten respondents said ensuring financial security was paramount in legacy planning. Clear estate plans (54%) and building sufficient wealth for inheritance (51%) were also cited as important factors. Additionally, over two-thirds prefer that inherited wealth be used for long-term growth through investments or continued involvement in the family business.
Broom commented: “Many families are unprepared for the future, even as they acknowledge the importance of a structured succession strategy. This presents a clear opportunity for business owners to lay a strong foundation for the future, yet far too many are exposed to unnecessary risks.”
The survey also points to generational differences affecting succession planning. Of those currently active in their family businesses, only 40% believe the next generation is fully willing to take over operations. Among younger members not yet involved in management roles, only 31% expressed full willingness to assume control.
Half of those reluctant cited independence as their main reason; other reasons included fear of responsibility (42%), lack of interest (28%), and differing values or vision (27%).
Broom added: “Asia’s family businesses are at a crossroads caused by growing generational differences. Younger generations are seeking independence, purpose and balance, and today’s business owners face a critical moment as they look to strengthen succession plans and engage in dialogue about the future.”
Fewer than half of surveyed families have sought professional financial advice on succession matters. Among those who have or plan to seek advice, expertise was rated highly (61%), along with long-term planning ability (52%) and personalized service (49%). Preferences varied between working with individual experts or comprehensive family office services.
“Our findings show that family-run enterprises value deep expertise and a tailored, long-term approach to legacy planning. There is clear demand for specialised, personalised insights, and for both individual experts and collaborative family office models. Proactive professional advice can help business owners achieve their succession goals, future prevent conflicts, and preserve the legacies families work so hard to build,” Broom said.
Sun Life Financial Inc., which provides asset management as well as insurance solutions globally—including major markets such as Canada, U.S., UK, Ireland, Hong Kong and others—reported total assets under management of $1.62 trillion as of September 30, 2025. More information about Sun Life can be found at www.sunlife.com.