Sun Life Asia Survey Highlights Legacy Planning Gaps Among Malaysian Families

A new Sun Life Asia survey reveals that families across the region, including Malaysia, are at a critical turning point when it comes to legacy planning and family business succession. Despite growing awareness, many remain underprepared. In Malaysia, only 34% of respondents have a fully developed succession plan, leaving nearly two-thirds without clear arrangements for the future.

The study, Passing the Torch: Building Lasting Legacies in Asia, surveyed more than 3,000 respondents across Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, and Vietnam. A companion survey involving 1,823 family business owners further explored the challenges of passing businesses to the next generation. With Asia set to experience the world’s largest intergenerational wealth transfer in the coming decade, the findings highlight the urgent need for structured and well-communicated legacy plans.

Security Comes First, But Wealth Longevity Remains a Concern

In Malaysia, 72% of respondents say protecting their family’s financial security is the most important aspect of legacy planning. This is followed by having a clear estate plan to reduce disputes (49%) and educating future generations on financial responsibility (48%).

Most families want their legacy to cover essential needs such as housing and healthcare (60%), support long-term wealth creation (60%), and fund education (56%). However, concerns remain high, with 68% worried their wealth will not last beyond their children’s generation, and 55% fearing their heirs are not financially equipped to manage inherited assets.

Legacy Beyond Wealth

Malaysian families define legacy in broader terms than finances alone. While 38% prioritise passing on wealth and assets, others place importance on preserving family traditions (16%) and making a positive personal impact on family and friends (15%). Still, only 27% believe their children will uphold family traditions, reflecting concerns about values being lost across generations.

Family Business Succession Still Underdeveloped

Family businesses make up a significant portion of Asia’s economy, yet succession readiness remains low. While 93% of Malaysian family business owners intend to establish legacy plans, only 34% currently have a fully developed succession plan. Communication gaps further threaten continuity, with just 49% of next-generation members involved in the business saying plans have been fully communicated to them.

A generational divide is also evident. Only 43% of business owners believe the next generation is willing to take over, while many younger family members cite fear of responsibility, desire for independence, or lack of preparation as reasons for stepping away.

Awareness Without Action

Despite high awareness of tools such as wills and financial advisors, actual adoption remains limited. Only 19% of respondents feel fully prepared if something were to happen to them today, and just 15% have completed and communicated their legacy plans. Professional advice is increasingly sought, especially among affluent individuals and younger generations, signalling a shift towards more structured planning.

Bridging the Gap

Through initiatives such as the InsureLit 2.0 Campaign, Sun Life Malaysia aims to close the gap between awareness and action. By combining research, education, and community engagement, the company seeks to empower Malaysian families to move beyond conversations and take concrete steps toward securing lasting financial legacies.