Survey reveals Malaysians struggle with legacy preservation as family succession lags

January 13, 2026

Healthcaretoday, Sun Life Malaysia, Family wellbeing, Legacy planning, wealth longevity, family business, succession planning, Financial wellness, intergenerational wealth, family health, Wealth education, Financial literacy, estate planning, business continuity, family values, Leadership transition,

Family businesses dominate Asia Pacific economies, yet succession readiness lags, with only 34% of Malaysian family enterprises having fully developed plans despite strong legacy intentions.

By Ho Teck Seng,
President and Country Head,
Sun Life Malaysia

A new survey reveals that families across Asia are navigating a pivotal moment in legacy planning and family business succession. In Malaysia, only 34% of respondents have a fully developed succession plan, leaving two thirds underprepared. While 60% of families prioritize practical legacy goals such as essential needs, long-term wealth creation and education, more than two thirds (68%) worry their wealth will not last beyond their children’s generation.

The research titled Passing the torch: Building lasting legacies in Asia, surveyed over 3,000 respondents across Hong Kong, Indonesia, Malaysia, the Philippines, Singapore and Vietnam, and highlights the attitudes, behaviors and aspirations surrounding legacy planning. A companion survey of 1,823 respondents further explores the unique perspectives of family business owners and their sentiments on the challenges involved in passing on enterprises to the next generation.

With Asia experiencing the largest intergenerational wealth transfer in the coming decade, the findings underscore the region’s growing need for structured, well-communicated, and future-focused legacy and succession plans.

Families prioritize security while worrying about wealth longevity
More than seven in 10 (72%) say having protection in place to ensure their family’s financial security is the most important factor in legacy planning. This is followed by having a clear and smoothly communicated estate plan to reduce confusion or disputes (49%) and educating future generations about financial responsibilities or financial management after inheritance (48%).

Most respondents prefer the wealth they leave behind to meet essentials such as housing and healthcare (60%). An equally significant proportion want their legacy invested for long-term wealth creation (60%) through financial assets, life insurance or the family business, with education funding (56%) also ranking highly.

However, over two-thirds (68%) fear their wealth may not last beyond their children’s generation, and more than half (55%) worry that their heirs are not financially equipped to manage inherited assets. Only 25% are confident their children will uphold wishes around wealth transfer and preserve assets.

In Malaysia, we're witnessing families redefine what legacy truly means – moving beyond financial assets to embrace a more holistic approach that includes financial security, education, and meaningful living for future generations. Our findings reveal a significant gap between intentions and implementation, highlighting the importance of early planning, proper guidance, and open conversations within families to ensure that both wealth and values endure through generations.

Defining a meaningful legacy
Malaysian families define their legacy in multidimensional terms. When asked about the type of legacy they want to leave behind, 38% cite passing on wealth, including money, property, or other valuable assets including family business, followed by family traditions (16%) and wanting to have a personal influence on family and friends (15%).

Worries extend beyond financial matters to the preservation of family values — only 27% of respondents believe their children will uphold family traditions.

Family business succession: Intent strong but plans underdeveloped
Family businesses make up 85% of companies in Asia Pacific, and SMEs account for 97% of all regional enterprises. The region is home to 18% of the world’s 500 largest family businesses, underscoring the importance of structured succession plans.

Yet succession preparedness remains low. While 93% of business-owning families intend to establish legacy plans, only 34% of Malaysian family businesses currently have a fully developed business succession plan, leaving two-thirds underprepared. Another 22% have partial plans, 21% are still developing plans, and 17% admit they have nothing in place but intend to act someday.

Communication gaps threaten continuity
For the next generation who are currently involved in their family business operations, only 49% say older generations have fully communicated with them about legacy plans. These planning discussions are even less frequent among family business owners where the next generation is not involved in the business, falling to just 22% of instances.

The majority of those who are involved in family enterprises say legacy conversations took place over formal family meetings (57%), followed by one-on-one formal conversations (48%) and only through written documentation (e.g., wills, letters) (39%). When asked about the ideal forum for legacy planning conversations, respondents reinforced this preference, favouring formal family meetings (61%) followed by formal one-on-one conversations (44%) and written documentation coming next (41%).

A generational divide
A growing generation gap is threatening the future of Asia’s family enterprises. Many are not interested in inheriting the family business driven by a desire for independence, the fear of responsibility and shifting values.

Of those active in their family business, only 43% of family business owners surveyed believe the next generation is fully willing to take over. On the other hand, of the next generation currently not involved in family business operations, just 37% say they are fully willing to take over the business.

The report indicates a sharp generational divide, with respondents reluctant to run the family business due to various reasons and priorities. More than half (59%) of family members who are not currently involved in the business and are reluctant to take over say they fear the responsibilities. Others cite the desire for independence (49%), a lack of interest (49%), and a lack of preparation or experience (31%) as their reasons for stepping away.

Many underprepared despite growing awareness
Even as awareness of legacy planning grows across the region, preparedness remains low. Only 19% feel fully prepared in terms of legacy arrangements if they were to pass away today, a figure that rises modestly to 35% among the affluent. Just 15% have completed and communicated their legacy plans, while nearly half (39%) have only partial plans, and 23% admit to having nothing at all.

While awareness of tools like wills, trusts and advisors is high, uptake is low. More than seven in 10 (77%) know about wills and estate planning documents, yet just 38% use them. Similarly, 72% are aware of financial advisors but only 36% have sought professional advice.

56% of those surveyed with a family business have ever sought financial planning advice. Among those to have sought or plan to seek advice in the future, 71% rank expert knowledge as one of the three most important factors when choosing a financial professional. This is followed by a personalized, tailored approach (53%), followed by trustworthiness and integrity (49%).

Families are talking but not planning. While more people recognize the need for open conversations about wealth and inheritance, many of these discussions still lack structure and follow through, leaving important legacy decisions unresolved or misunderstood. Formal discussions with the whole family give clarity, prevent conflict, and ensure a more enduring legacy.

Financial literacy is a valuable family legacy
Families are turning financial education into another form of inheritance by passing on knowledge and experience of money management. When asked what actions they have taken, or plan to take to strengthen the next generation’s confidence, a majority say they are sharing personal financial experiences (58%), engaging in open financial discussions (55%), and teaching financial basics (55%).

Professional guidance towards legacy planning is also in growing demand. 42% of respondents have already engaged advisors, and 36% plan to do so. Affluent individuals lead the way, with 68% having sought advice, while nearly half of Gen Z respondents (40%) intend to do so, reflecting a generational shift toward structured support.

Survey reveals Malaysians struggle with legacy preservation as family succession lags

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