The rise of wealth in ASEAN: a new era for estate and legacy planning
I was back in Manila last week, after an absence of over 23 years from the Philippines, as part of a road trip throughout the ASEAN region to highlight the importance of estate and legacy planning. A lot has changed in two decades, particularly as the Philippines has been one of the most dynamic economies in the East Asia and Pacific region.
The transformation of Manila has been startling. Upgrades in transportation have improved access and mobility, which in turn have encouraged the development of new hotels, malls and business districts. The government’s dedication to fostering a pro-business environment through favourable incentives has been instrumental in attracting more foreign investment.
And the Philippines is not alone. The ASEAN region has been experiencing remarkable economic growth fuelled by robust performance in sectors like manufacturing, services and technology. Countries such as Vietnam and the Philippines have emerged as top performers, with GDP growth rates exceeding 6%. Malaysia, Indonesia, and Thailand have also seen significant economic expansion.
This growth has also created a hub of wealth accumulation and prosperity. According to McKinsey analysis, between 2023 and 2030, high-net-worth families in the Asia-Pacific region are set to undergo an intergenerational wealth transfer estimated at USD5.8 trillion.
As someone who has worked in financial services for over 25 years advising on private client wealth, I know that wealth preservation is just as important as wealth generation. After all there is a well-known Chinese saying “rags to rags in three generations”. The first generation makes the money, the second spends it and the third has none.
Now, I think, there is a better understanding of legacy planning. Traditionally in Asian culture, discussions about death and inheritance have been taboo – but this is changing. Families are increasingly acknowledging that succession planning is crucial for preserving wealth and ensuring a smooth transition of assets across generations. They are also willing to consider factors such as changing marital relations, inheritance disputes and the longevity of family members.
Modern estate planning goes beyond just the financial assets. It’s about safeguarding your family’s future, ensuring continuing prosperity and passing down your values alongside wealth. This shift reflects a broader trend where individuals aim to leave a legacy that resonates deeply with their loved ones, adding emotional complexities to financial ones.
The ASEAN region’s economic ascent is not just a story of numbers; it’s a narrative of transformation and legacy. As families accumulate wealth, the focus shifts to preserving it in ways that honour their values and aspirations. Estate and legacy planning are no longer optional – they are essential tools for safeguarding prosperity and ensuring a meaningful inheritance.
