We ask Navin Amarasuriya, managing director and fifth generation in the family business B P de Silva and Neo Kah Kiat, founder, chairman and CEO of leading food catering company Neo Group about keeping it in the family.
Navin Amarasuriya: “Yes”
“A lack of discipline or strong values would be just the tip of the iceberg when it comes to the reasons why the third generation blows the family wealth. I think lacking an understanding of societal context of wealth is a bigger reason.
If we dive deeper into the reasons why someone blows through wealth, that person is likely trying to maximise happiness through consumption. A lady may feel unhappy over having the ‘worst’ handbag among her friends and proceed to overspend to gain validation from them. Yet, if she looks beyond her narrow social circle to a slightly wider one, she will see how fortunate she is to not be struggling for survival.
Perhaps parents can expose their children not just to the world they are born into, but the one outside it. Bill and Melinda Gates shared how they did this in a Ted Talk entitled ‘Why giving away our wealth has been the most satisfying thing we’ve done’.”
Navin Amarasuriya, managing director and fifth generation in the family business B P de Silva, says his family is not wont to flashy displays of wealth — but he won’t judge others on how they spend their family fortunes.
Neo Kah Kiat: “No”
“Each generation is different in the way it perceives the value of money. The first generation is hardworking, but often focuses on wealth accumulation instead of enjoying it. To them, it is more important to build trust and loyalty.
The second generation wants to succeed fast, and they value money. They are more open to sharing their secrets to success, and look for ways to work smart, instead of just working hard. They are imaginative, but tend to take for granted the importance of building a strong foundation.
The third generation is often the most educated. They benefit from the knowledge and privileges brought by wealth, and if taught the right values, can bring the family net worth to new heights. The business model may be outdated when it’s time for them to take over, so it may not be that easy to sustain or grow the business — but it’s easy to view it as fulfilling the prophecy of the third generation that blows it.”
Neo Kah Kiat, the founder, chairman and CEO of leading food catering company Neo Group, keeps his two sons grounded by reminding them to maximise every dollar and to give back to society.