While Asia is home to nearly half of the world’s households living in poverty, it also has the fastest-growing concentration of wealthy families – and great potential to deploy philanthropic capital to create social and environmental impact.

More billionaires live in Asia – 951, according to Nikkei Asia – than in the United States and Europe. Amidst this scenario, wealthy Asian individuals and families have the opportunity to unlock as much as US$701 billion per year to address pressing developmental challenges. That is, if Asian countries were to match the US in terms of philanthropic spending, as recorded in the Doing Good 2022 index.

The Bridgespan Group, in its latest research, studied the philanthropic endeavours of the 67 wealthiest families in Southeast Asia’s six largest economies – Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam – as well as Hong Kong, with the hope of inspiring wealth holders to commit new resources towards urgent social and environmental needs. Collectively, these entities control over US $618 billion in wealth.

Bridgespan conducted extensive secondary research on each individual or family’s giving, collecting information on a range of topics, including demographics, the business and philanthropic entities they own, the size of their giving, their favoured areas for giving, and their collaborations with government. The combined picture provides a broad view of the attitudes and behaviours of wealth holders across Asia, including how and why they give.

Much philanthropy in Southeast Asia flows to direct services that address basic human needs. Amongst the wealthy families profiled, 94 percent give to education, 87 percent to healthcare, and 84 percent to poverty alleviation, which includes activities such as establishing livelihood programmes and constructing housing.

Despite differences in national culture, experience, and aspirations, Bridgespan surfaced three approaches that shape a uniquely “Asian way” of philanthropy. These approaches are consistent with – and build upon – Asia’s rich cultural heritage, which deeply values charitable giving, the importance of relationships, and the role of government as an agent for social good.  All three of these approaches, which are not mutually exclusive, would benefit from an infusion of greater resources:

• Using business as a platform for social good: The rise of Southeast Asia’s wealthiest families has mirrored the economic development of their countries. Through the growth of their companies, these families have contributed significantly to building their nations’ economies, workforces, and social welfare. Across Asia, business and philanthropy are deeply intertwined, and the concept of “What’s good for business should also be good for society” endures. Bridgespan’s analysis underscored this close relationship – 94 percent of the 67 individuals and families surveyed give through corporate social responsibility (CSR) programmes, which are by far the most prevalent form of giving.

• Establishing philanthropic operating foundations: Sixty-seven percent of the foundations associated with the families analysed are operating foundations, meaning they design and carry out their own projects rather than giving grants to nonprofits that do the work. Operating foundations provide funders with more control and oversight. But funders in Asia give to them for other reasons: Several expressed concern about the scarcity of nonprofits capable of managing large grants.

• Partnering with government to achieve social change: Across Asia, many business families have worked closely with government to pursue mutual interests and develop civil society –what some leaders in the region call “nation building.” Forty percent of interviewees cited government collaboration as a critical lever in their work. In fact, government support is one of the most effective ways to ensure the financial sustainability of a successful programme. As the largest funders of social services, governments can adopt and consistently fund programmes that have a high potential to create lasting change. In a companion report, Bridgespan explores further the approaches Asian philanthropists adopt to collaborate effectively with governments.

Asia’s steep economic ascent in recent decades has placed it at the forefront of global wealth creation. The number of millionaires in the Asia-Pacific region is projected to increase from 9.7 million in 2022 to 15.4 million in 2027, according to Credit Suisse and UBS. As wealth has grown in Asia, so has the need for more philanthropy. The entire region is not on track to achieve any of the UN’s SDGs by 2030: just one telling indicator of the magnitude of the challenge.

Many wealth holders in the region are already engaged with philanthropy and have an opportunity to use their considerable wealth to do even more good. Others have not yet started and now have several models and approaches in Asia and beyond to look to for inspiration as they get going. The issue is not how, but how much.

Chris Addy and Keeran Sivarajah are Partners at The Bridgespan Group

Xueling Lee is a Principal in Bridgespan’s Singapore office.