There is a growing age divide in the way wealthy Malaysians engage in philanthropy, with younger generations increasingly adopting a “giving-while-living" approach, according to a survey from UBS and INSEAD.

There is a growing age divide in the way wealthy Malaysians engage
in philanthropy, with younger generations increasingly adopting a “giving-while-living" approach, exemplified by their support for the arts, according to a survey.

Generation Y are increasingly giving to the arts, preferring to see the results of their largesse, as opposed to the older generation who tend give it to educational causes, said the report from  UBS and business school INSEAD which drew on more than 200 surveys and 100 in-depth interviews with ultra high net worth individuals and families. 

The number one philanthropic cause for Malaysians is education, representing 42 per cent of financial
contributions made in 2010. Giving to the arts is growing, representing 5 per cent of total contributions in 2010, said the report.

Education was followed by poverty alleviation and development (10 per cent), health (9 per cent), and disaster relief (5 per cent). The importance of education in many Asian cultures is a natural driver of philanthropy in the region. 

“Typically, the older generation is influenced by tradition and
regards its primary responsibility as with the local community, while the
second and third generations are prone to adopt a national/international focus.
Thematically, the older generation tends to focus on education, health and
poverty, while their children and grandchildren are more supportive of the
arts, civil rights and the environment,” said the report.

Also, the older generation tend to regard giving as an
end in itself while their children tend to seek to measure the impact of their
philanthropic efforts, said the report.

Philanthropy as a family bond

In spite of these differences, 42 per cent of the families
interviewed cited ensuring the continuity of family values and creating a
legacy as underpinning their efforts.

“While geography and culture continue to be important factors in
attitudes towards philanthropy, a clear difference in approach between the
first and subsequent generations of Asia’s wealthy is also emerging. A constant
factor that remains is the centrality of the family unit to the concept and
practice of philanthropy in Asia," said the report.

“Driven by phenomenal economic growth over the past two decades,
Asia has undergone fundamental change. Nonetheless, an enduring feature is the
status of the family as the primary building block of Asian societies coupled
with an exceptionally strong sense of responsibility towards the well being of
future generations, which is often manifest in establishing formal platforms to
engage in social good,” said Terry Lim, chief representative of UBS, Malaysia.

“Successful families across Asia have the potential to exert a
transformational impact on the social, economic and environmental challenges
facing the continent. With Asia leading the world in wealth creation, it is to
be expected that it will soon also lead the way in giving,” said Dipak Jain, dean
of INSEAD.

While philanthropy is an age-old tradition in Asia, structured
family philanthropy is a relatively new phenomenon. Of the 200 initiatives
surveyed, more than 75 per cent were established as formal philanthropies since
1980 and more than 60 per cent were established since 1990 while around 45 per
cent of funding for regional philanthropic initiatives now comes from
first-generation businesses, said the report.