In a nation built on resilience, innovation, and foresight, Singapore’s entrepreneurs are increasingly turning their attention to what lies beyond their own success but the continuity of their businesses and the preservation of their legacies. Business succession planning and legacy creation have become integral to ensuring that hard-earned wealth, reputation, and purpose transcend generations.
Why Business Succession Matters
Every successful business will have to transition from one generation to the next. According to industry studies, more than half of family businesses in Asia have no formal succession plan in place. This lack of preparation exposes enterprises to leadership vacuums, internal disputes, and even dissolution after the founder’s departure.
In Singapore, where family-run small and medium enterprises (SMEs) form the backbone of the economy; contributing nearly half of the nation’s GDP. Effective succession planning is not merely about inheritance, it’s about preserving continuity, safeguarding jobs, and sustaining national economic resilience. Maintaining a stable, well-run business that has existed through multiple generations is also easier and more cost-effective than starting new businesses through trial and error over and over again.
A sound succession plan ensures that:
- Leadership transition happens smoothly and strategically.
- The business vision and values are retained through capable stewardship.
- Tax and legal risks are minimised through structured asset transfers.
- The founder’s legacy continues to shape future generations.
Legacy Planning in Singapore
Singapore’s reputation as a trusted global financial and legal hub makes it one of the most attractive jurisdictions for wealth and succession planning. The country’s political stability, robust legal framework, and progressive tax regime provide a solid foundation for families to structure their businesses and wealth efficiently.
Key features that make Singapore ideal for succession and legacy planning include:
- Trust and Foundation Structures:
Singapore’s trust law allows individuals to transfer assets into a trust managed by a trustee for the benefit of chosen heirs. The Variable Capital Company (VCC) framework and foundations further enhance wealth protection and intergenerational transfer flexibility. - Private Limited Companies and Family Offices:
Setting up a family office or holding company in Singapore enables business owners to consolidate assets, manage investments professionally, and ensure governance continuity. Many entrepreneurs integrate their operating businesses under such structures to maintain control while preparing for generational handover. - Tax Efficiency:
With no capital gains tax and a territorial tax system, Singapore allows wealth creators to optimise tax outcomes across asset classes and geographies, which is a crucial consideration in cross-border families.
Rise of Family Offices and Professional Governance in SIngapore
Singapore has seen exponential growth in single family offices (SFOs) over the past five years. These entities go beyond asset management; they play a central role in family governance, philanthropy, and succession readiness.
With initiatives like the Global Investor Programme (GIP) and new frameworks encouraging philanthropic capital flows, the city-state is positioning itself as Asia’s foremost hub for families seeking longevity in their wealth and purpose.
Proper governance mechanisms including family constitutions, boards, and clear decision-making frameworks help prevent disputes and ensure that family values guide business direction long after the founder’s time.
Succession to Legacy: Building a Multigenerational Vision
True legacy planning extends beyond the transfer of shares or assets. It’s about imparting values, vision, and stewardship principles. Founders who successfully pass on their legacy cultivate successors who not only inherit wealth but also inherit responsibility in their employees, communities, and society.
Key steps to building a lasting legacy include:
- Documenting the Founder’s Vision: Capture mission, principles, and business philosophy.
- Developing the Next Generation: Engage successors early through mentorship and leadership exposure.
- Institutionalising Values: Embed ethics and culture into governance frameworks.
- Creating Philanthropic Vehicles: Use foundations or charitable trusts to give back sustainably.
- Regular Review: Revisit the succession and legacy plan every few years to align with evolving goals and regulations.
Recent Cases of Failed Business Succession in Singapore
While many business succession stories focus on careful planning and legacy-building, Singapore has also seen some very public and painful failures. These cautionary cases highlight how succession can go wrong when governance, communication, or expectations break down. Here are some notable examples from the past five years:
1. City Developments Limited (CDL) – The Kwek Family Feud
In early 2025, Kwek Leng Beng, executive chairman of property giant City Developments Limited (CDL), publicly accused his son Sherman Kwek, the firm’s group CEO, of orchestrating a boardroom coup.
The dispute followed years of tension. Sherman became CEO in 2018, but under his leadership, CDL suffered a major loss: a S$1.9 billion write-down from an investment in China’s Sincere Property Group in 2020.
The governance structure itself may have been a problem as having both the father, as executive chairman, and son, as CEO introduced conflicts of interest, and some board processes were weak. The public nature of the family dispute, combined with poor financial performance, severely damaged CDL’s reputation and raised serious questions about the succession plan.
2. YES Supermarket – Father-Son Lawsuit
The YES Supermarket business failed and the son Kwek Hong Lim sued his father Kwek Sum Chuan. Hong Lim claimed he had been verbally promised verbally a larger share of the supermarket business and the underlying property, thus asking for S$15 million to exit amicably.
However, the court dismissed his claim. The judge found that the son’s testimony lacked credibility, and there was no written agreement to support his version of events. The supermarket shut down in 2018 due to “significant financial losses” under his management, according to his father.
3. Hin Leong Trading – Collapse Under Founder
Hin Leong Trading, once one of Singapore’s largest independent oil trading firms, collapsed in 2020. It filed for bankruptcy protection amid alleged undisclosed losses of US$800 million. The founder, Lim Oon Kuin, lost control of the business, and creditors went after it aggressively. The collapse exposed a lack of transparency, weak governance, and possibly insufficiently independent management – all are classic succession-planning risks.
Why These Failures Happen
Putting these cases together, several common failure factors emerge:
- Lack of Formal Governance
Many family businesses do not have independent governance structures such as independent board members, nominating committees that ensure proper checks and balances. This allows personal loyalty or family dynamics to override business logic. - Poor Documentation
Verbal promises, unwritten agreements, or informal expectations are a recipe for disaster. - No Conflict-Resolution Mechanism
When disputes arise, without predefined escalation and resolution frameworks, things can spiral into lawsuits or boardroom battles. - Overconcentration of Power
Founders often remain deeply involved, making it hard for successors to exert independent judgment. Or the successor may be too dependent. - Underestimating Non-Financial Risk
Succession isn’t just a financial transaction. It’s about identity, legacy, family relationships, and roles. When those are ignored, legal or interpersonal conflicts can become existential.
Implications & Lessons for Future Succession Planning
These real-world failures reinforce the argument that succession planning must be intentional, structured, and governed. Here are some lessons for business owners in Singapore:
- Start Early: Don’t wait until the founder is ready to step down. Begin grooming successors years in advance with clear roles and mentorship.
- Formalise Everything: Use written agreements not just for ownership, but for remuneration, exit mechanisms, decision rights, and governance.
- Build Independent Governance: Include non-family directors or independent committees to oversee key decisions.
- Conflict Mechanisms: Define how disagreements will be handled before they happen.
- Prepare for Crisis: Plan for worst-case scenarios such as financial collapse, incapacity, or insolvency with contingency structures (trusts, holding companies, external managers).
These cautionary tales show that lack of planning, weak structures, and informal promises can erode even the most successful businesses. Succession, therefore, is a foundational part of legacy preservation.
The Role of Professional Advisors
Given the complexity of modern wealth structures, working with experienced legal, tax, and succession advisors is essential. Firms specialising in immigration, family office setup, and wealth structuring such as Immigration@SG (IASG) can guide entrepreneurs in aligning their family, business, and global mobility goals seamlessly.
IASG helps ensure that legacy strategies are compliant, tax-efficient, and adaptable to global family dynamics, enabling Singapore-based founders to secure their future generations with confidence.
