Skipping a generation: Lessons from the late Nippon Paint tycoon's inheritance play

Plan early and communicate intent clearly to avoid conflicts

- Cheong Poh Kwan Assistant Business Editor

Months before Nippon Paint tycoon Goh Cheng Liang died at the age of 98 in August 2025, the future of his multi-billion-dollar empire was already mapped out.

Regulatory filings by Nippon Paint show that by December 2024, the shares of its parent company, Nipsea International, had been transferred to six individuals - later revealed to be six of Mr Goh's eight grandchildren. Together, they hold one billion shares worth over $10 billion.

His son Goh Hup Jin, chairman of Nippon Paint, was issued just one redeemable preference share but it carries 90.9 per cent of the voting rights. In other words, he remains the firm's super commander.

Succession experts who spoke to The Sunday Times said the Goh family's approach passing ownership of the family's crown jewel directly to the third generation while letting the second generation retain control - is unusual, but not illogical.

Associate Professor Yupana Wiwattanakantang of the National University of Singapore, who has a specialisation in family capitalism, said the strategy makes sense, as Mr Goh Hup Jin is already in his early 70s and can avoid having to manage another round of ownership transfer - which can be costly - in a few years.

Instead, he can focus on grooming the next leader, with third-generation heir Martin Lavoo now serving on Nipsea's board and listed as the company's representative. The 38-year-old in 2013 co-founded urban farming company Sustenir.

"It is good that one grandson is on the board, learning the ropes," Prof Yupana said, adding that separating ownership transfer from leadership transfer is a hallmark of professional governance.

Prof Yupana noted that the grandchildren own shares in Nipsea - the holding company which has a 55 per cent stake in Nippon Paint - rather than shares of the Tokyo-listed firm directly. This structure helps prevent family members from selling shares on the open market and diluting the family's control.