Succession Gaps Threaten Asia's Family Business Future

• Over 70% of Singapore's workforce relies on SMEs, many lacking succession plans
• Family businesses contribute up to 79% of GDP in India, yet most lack successors
• Timah's permanent holding model offers a scalable alternative to traditional exits

Across Asia, family-owned businesses—critical to GDP in countries like India and China—face mounting succession planning challenges as aging founders retire without clear plans. 

In Singapore, where SMEs employ over 70 percent of the workforce, only a small share of owners have formal succession strategies, a trend echoed in markets like Hong Kong, Taiwan, and mainland China. Cultural and generational divides complicate traditional family business succession, as younger generations often pursue different career goals. This contrasts with trends in the U.S., where Millennial business owners are more likely to plan succession proactively. 

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Models like Timah Partners offer new alternatives by pairing retiring founders with rising leaders through structured CEO-in-Training programs, supported by permanent capital. Inspired by Danaher and 3G Capital, these holding companies prioritize long-term operational continuity over short-term financial exits.  

In Southeast Asia, where family firms dominate, this approach may provide a sustainable middle path between family succession and selling to private equity.