Over 70% of Thai family businesses currently lack clear succession plans according to McKinsey, exposing them to ownership, governance, and leadership risks during the ongoing global intergenerational wealth transfer. This gap comes as the Asia-Pacific region anticipates an estimated $6 trillion asset transfer to the next generation by 2030. To address these challenges, UOB Thailand and Baker McKenzie hosted “Beyond Wealth: Legacy and Strategy” under UOB’s regional platform, The Business Circle, gathering over 60 Thai business families to discuss governance, ownership structures, and leadership continuity.
Vira-anong Chiranakhorn Phutrakul, Deputy CEO and Country Function Head of Wholesale Banking at UOB Thailand, stated that succession planning is often delayed until founders step back or unforeseen events arise. She emphasized that effective succession requires establishing clarity around ownership, governance, and leadership early on to protect both the business and family relationships.
Dr. Primyadar Duangrat, Partner at Baker McKenzie, noted that wealth transition extends beyond asset transfers. She highlighted that comprehensive planning must address ownership structures, legal and tax considerations, and family expectations to minimize disputes and support sustainable growth.
To assist family enterprises, experts outlined the 3S Framework:
- Structure: Focuses on establishing clear ownership frameworks. Key tools include setting up a Family Holding Company to consolidate operating shares and assets into a single entity, mitigating stock fragmentation and clarifying voting and management authority. Under applicable tax regulations, holding companies owning at least a 25% stake in another firm may qualify for dividend tax exemptions. Privately held shares may also be valued based on book value for tax flexibility. For cross-border assets, an Offshore Trust can legally separate assets from the founder, offering asset protection and phased beneficiary distributions.
- Safeguard: Addresses legal and shareholder risks to prevent disruptions. Recommended measures include defining shareholder rights, voting procedures, and dispute resolution mechanisms in advance to prevent decision-making deadlocks. For families with international assets, estate planning and wills must account for jurisdictional tax and property laws. Additionally, Prenuptial Agreements can separate family assets from marital property to protect equity during relational changes.
- Succession: Emphasizes long-term governance through a Family Constitution, which sets agreed-upon rules for family employment, leadership selection, decision-making, and conflict resolution. The process fosters cross-generational communication and aligns expectations regarding equity and involvement. Furthermore, social initiatives and Philanthropy can engage family members not directly involved in operations, preserving shared values.
The seminar forms part of UOB’s regional platform, The Business Circle, which aims to support next-generation leaders and family enterprises across ASEAN through networking, knowledge exchange, and expert insights on succession, digital transformation, and sustainable growth.
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