Will you give all your wealth to charity?

Will you give all your wealth to charity?

Jul 04, 2008
The New Paper

By Mindy Tan

We're not like you, Mr Bill Gates.

Asian millionaires are inclined to keep wealth in the family. They prefer to impart their passion and social values to their children and leave it to them to do the right thing.

Asian captains of industry are not about to cash out and become philanthropists such as Microsoft founder Bill Gates, the world's third richest man.

He donated large amounts of money to various charitable organisations and scientific research programmes through the Bill & Melinda Gates Foundation, established in 2000.

The idea of a foundation to perpetuate the founder's vision did not appeal to Mr Mohan Murjani, for example, whose luxury brand chain is making waves in India.

No foundation can pass on passion, he said at an event by Wealth magazine published by Global Magazines.

To mark its first anniversary, it gathered a clutch of multi-millionaires to discuss succession planning over lunch at The Mandarin Oriental last Friday.

The tycoons were aware that only one-third of family businesses was successfully passed down to the next generation, statistics showed.

When it came to transferring that business to the third generation, the figure was cut even thinner. Only about 10 per cent of businesses survived beyond the third generation.

Mr Stephen Riady, president of the Indonesia- and Hong Kong-based Lippo Group of companies, offered one explanation for this general reluctance to give it all away.

'People are always jealous about others being better, other than their own children being better than themselves,' he said.

That is why many hope their own children can continue to run their businesses to continue the legacy. Founders then try to make sure their children are equipped with the right qualities to continue the good work.

Mr Riady himself took over Lippo Group founded by his father, Dr Mochtar Riady.

His father gave him $10 million to spend after he graduated from university.

Mr Riady said he started investing in stocks but lost it all when the market crashed in the late '80s. His father was pleased to see he had learnt something from the experience.

Mr Mohan said he has willed almost all his assets to charitable organisations. And if his children work for these organisations, they will get something.

Mr Mohan's greatest birthday gift, he said, was a mobile clinic his son bought for a poor Indian village - a present for the people in Mr Mohan's honour.

The writer is a freelance correspondent.

This article was first published in The New Paper on 2 July 2008