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Family businesses are a unique force in the global economy, built on a foundation of loyalty, shared history, and long-term vision. Yet, this incredible strength –the family bond itself – is also their greatest vulnerability. It is a well-documented paradox that the vast majority of family business failures are not caused by market downturns or strategic missteps, but by an internal breakdown of trust and communication. The most formidable threat to a family dynasty often comes from within.

This challenge is becoming increasingly relevant in Singapore, which has seen a meteoric rise as a top-tier global hub for private wealth management. It is widely reported that by the end of 2024, the number of single-family offices based here exceeded 2,000 – a remarkable increase from previous years.(1) As these global families anchor their wealth in Singapore, they bring with them complex, cross-border business interests and, inevitably, the potential for deeply personal succession disputes. 

In this high-stakes environment, mediation is emerging not just as an alternative, but as the indispensable tool for managing conflict, preserving wealth, and ensuring the continuity of family legacies.

The tangled web of cross-border succession
For high net worth families with business interests spanning many countries, succession is not a simple handover of a single company. It is a multi-layered puzzle involving different legal systems, conflicting tax regimes, diverse cultural norms, and varying business practices. A decision made about an asset in Singapore could have unforeseen legal and financial repercussions for a subsidiary in Europe or a trust in the United States.

When disputes arise in this context, traditional litigation becomes a minefield. Legal battles fought across multiple jurisdictions are not only prohibitively expensive and time-consuming but also risk creating a cascade of contradictory court rulings. This can paralyse the business, drain its resources, and leave the family’s assets in a state of legal chaos. 

More importantly, the adversarial nature of litigation forces family members into opposing camps, turning personal disagreements into public, irreconcilable battles which may affect public perception and in turn, share value. The very fabric of the family, which was once the business's greatest strength, is torn apart.

The collision of emotion and commerce
At the heart of most family succession disputes is the collision of objective business logic with the powerful undercurrents of family emotion. Unlike in a non-family corporation, decisions are rarely just about the bottom line; they are freighted with decades of personal history and psychological dynamics. A founder’s reluctance to relinquish control may be rooted in a deep-seated fear of losing their identity. Sibling rivalries, born in childhood, can re-emerge in the boardroom as fierce competition for leadership. These are not mere business disagreements; they are profound personal conflicts about fairness, recognition, and respect.

When these disputes play out across international borders, the complexity multiplies. This is precisely why traditional litigation so often fails these families. The adversarial process forces relatives into opposing camps, turning private pain into public spectacle and destroying the relationships that the business was built on. A court can rule on the legal ownership of shares, but it cannot heal a fractured family.

Singapore’s world-class mediation ecosystem
Recognising the unique needs of complex commercial and private disputes, Singapore has deliberately cultivated a world-class ecosystem that champions mediation as the primary method of resolution. This framework is built on three powerful pillars: institutional strength, judicial support, and international enforceability.

1. Institutional strength: The Singapore International Mediation Centre (SIMC)
Established in 2014, the SIMC is a cornerstone of Singapore’s status as a global dispute resolution hub. It provides a best-in-class infrastructure for mediation, featuring a panel of internationally-renowned mediators with deep expertise in a range of sectors, including corporate finance, trusts, and family business governance. The SIMC’s impressive case track record (over 430 cases) and high settlement rates (7 to 80 per cent) give parties the confidence that they are engaging in a credible, effective process designed to achieve resolution. For HNW families, the SIMC offers a confidential, premium forum for resolving sensitive issues with the guidance of world-leading experts.

2. Judicial support: The rules of Court 2021 and Singapore case law
Singapore’s judiciary actively steers litigants away from costly and destructive courtroom battles. The Rules of Court 2021 have embedded mediation into the legal process, making it clear that litigation should be a last resort. The rules mandate that parties consider amicable dispute resolution options like mediation at every stage of proceedings, including before the start of any action or appeal.(2) The courts may also consider efforts made by parties to resolve a dispute when making subsequent costs orders (3).

Crucially, the courts have the power to order parties to attend mediation where necessary (4) and can impose adverse cost consequences on any party that unreasonably refuses to participate. Where parties have an obligation to refer the dispute to mediation, the courts may order specific performance where it is just and equitable to do so to compel parties to attend mediation to resolve the dispute.(5)

This judicial stance sends a powerful message: engaging in mediation is not a sign of weakness, but a legal and strategic imperative. This proactive approach ensures that even when disputes have escalated, there is a structured pathway back to constructive dialogue.

3. International enforceability: The Singapore Convention on Mediation
A significant development (especially looking forward into the future) is the United Nations Convention on International Settlement Agreements Resulting from Mediation, widely known as the Singapore Convention on Mediation. This landmark treaty, which came into force in 2020, allows a mediated settlement agreement to be enforced directly in the courts of other signatory countries. The world's largest economies, China and the United States, have both signed the Singapore Convention, signalling their support for it, although work remains to fully ratify and implement it in those countries.

For families with assets spread across the globe, this will be a game-changer. It gives a mediated settlement the same "teeth" as a court judgment or arbitral award, providing certainty and finality. The Singapore Convention will in time elevate mediation from a simple negotiation to a powerful legal tool for creating binding, cross-border solutions.

The tangible benefits for global families
Within this robust framework, mediation offers tangible benefits that litigation can never match:

1. Absolute confidentiality
For families whose name is their brand, privacy is paramount. Mediation is conducted behind closed doors, protecting the family’s reputation and the business’s value from the damage of public scandal.
2. Preservation of relationships
The primary goal of mediation is to find a resolution, not to declare a winner. By fostering communication and empathy, it provides a platform for healing fractured relationships, which is essential for the long-term health of the family and the business.
3. Creative and flexible solutions
Courts are bound by rigid legal remedies. In mediation, families can design bespoke solutions tailored to their unique circumstances. This could involve creating a family charter, establishing a family council, designing a phased leadership transition, or developing innovative shareholding structures that a court could never order.
4. Efficiency and control
Multi-jurisdictional litigation can drag on for years, draining millions from the family estate. Mediation is significantly faster and more cost-effective. Crucially, it keeps control in the hands of the family, who become the architects of their own agreement.

As Singapore continues to cement its status as a safe harbour for private wealth, the need for sophisticated and sensitive dispute resolution mechanisms will only grow. For the global families choosing to build their legacies here, embracing the nation's world-class mediation framework is essential. In an environment where personal history and global commerce intersect, mediation offers more than a way to settle a dispute; it provides a structured, healing process to navigate these intricate complexities. It is the gold standard for protecting wealth, preserving relationships, and ensuring that a family’s legacy endures for generations to come.

Footnotes

1, Singapore family offices exceed 2,000 in 2024, up 43 per cent on year, The Business Times, published 14 January 2025, https://www.businesstimes.com.sg/companies-markets/singapore-family-offices-exceed-2000-2024-43-year 
2, Order 5 Rule 1 of the Rules of Court 2021
3, Order 21 Rule 2 of the Rules of Court 2021
4, Order 5 Rule 3 of the Rules of Court 2021
5, Maxx Engineering Works Pte Ltd v PQ Builders Pte Ltd SGHC 71

About the authors

Mohammed Reza, partner and head of international arbitration, Withers KhattarWong; 

Yeoh Lian Chuan, partner, private client and tax, Withers KhattarWong; and 

Hugo Lam, associate, dispute resolution, Withers KhattarWong.