Singapore founders want family succession but lack planning: report

81% of Singapore’s entrepreneurs want to keep their businesses in the family. 

A growing number of Singapore’s entrepreneurs want their businesses to stay in the family, but only a few have a roadmap to get there.

According to HSBC’s 2025 report Harmony Through Succession Planning, 81% of Singapore’s entrepreneurs want to keep their businesses in the family. Yet, nearly half (48%) admit they have no succession plan in place.

This striking gap between intention and action mirrors a regional trend across Asia, where cultural taboos around discussing mortality continue to stall planning.

The report described this as “the gap between intentions and reality,” noting that even second- and third-generation entrepreneurs are reluctant to formalise a succession plan. This hesitation isn’t due to a lack of trust.

In Singapore, 74% of entrepreneurs believe the next generation is capable of managing family wealth. However, 52% are concerned that their children won’t want to take over the business. These fears are amplified by lifestyle pressures.

Singapore ranked third globally in 2024 for burnout-related Google searches, pointing to a growing resistance to high-stress career paths.

Emotional stress around succession is significant. Singapore entrepreneurs were the most likely among their global peers to say the business held them back from personal ambitions, with 62% expressing this view.

That number is even higher among first-generation founders. Despite feeling supported by elder generations—83% of Singaporean successors report such support—only 46% say they find it easy to ask for help, highlighting the difficulty of initiating open, cross-generational conversations.

Amidst these challenges, Singapore is seeing a powerful shift in how legacy is preserved. The number of single-family offices in the country has exploded from 400 in 2020 to over 2,000 in 2025.

These structures allow families to professionalize wealth management, diversify investments, and give younger members autonomy, all without the burden of directly continuing the original business.

“Families are open to transitioning from a family business to a family managing wealth,” said Edith Ang, Head of Family Advisory at HSBC.

To support smoother transitions, HSBC recommended families embrace a dual strategy—one that lets the current generation run the core business while the next explores complementary paths. 

“Understanding the starting position of each family member is the key to productive conversations,” said Aik Ping Ng, Head of Family Office Advisory, Asia Pacific. Governance structures, clear role definitions, and trusted external advisors are also cited as essential to avoiding conflict and confusion.

There’s also growing recognition that the next generation may want to forge their path. The report found that 43% of entrepreneurs globally do not expect their children to take over the family business and instead want them to pursue their ambitions.