“What advice would I give my younger self?” laughs Calvin Kong, founder of Concept First Physics and Math Learning Centre, a private education centre in Singapore. “Hope is not a good strategy. You have to calculate your risk wisely.”
Calvin Kong, entrepreneur founder of Concept First Physics and Math Learning Centre
Approximately one-third of the world’s high-net worth individuals (HNWIs) live in Asia, with a large portion being entrepreneurs.1 The 2024 study by AFFLUENTIAL and Agility Research and Strategy reveals that 40 per cent of Singaporean HNWIs identify as entrepreneurs.2 These individuals, like Kong, willingly take on the risk of starting and growing a business – often, as in Kong’s case, with little more than a promising idea.
Occupation and Wealth
How Singaporean HNWIs Identify by Profession (%)
Source: AFFLUENTIAL and Agility Research and Strategy, 2024 study
After a decade of teaching in a public school, Kong founded Concept First Physics and Math Learning Centre in 2018. He recognised early on that the primary business risk was entering an already saturated and well-established private education market. To stand out, he invested in a five-figure state-of-the-art physics lab to provide an exceptional hands-on learning experience. “That added another layer of financial commitment,” Kong says. “High upfront costs combined with all the usual setup.”
Like many entrepreneurs, he personally financed these business risks. “I had to pour in personal savings,” he says, balancing this commitment with family responsibilities including a mortgage, household bills and a newborn. “Every step felt like a gamble, but I was driven by my belief in our proposition.” Despite his determination, Kong says the process brought plenty of emotional strain as he invested his time, money and energy without any guarantee of returns.
Remarkably, he admits he didn’t fully appreciate the exposure at the time. He recalls his optimism, with a mindset of “Just do it! Let’s go and be hopeful about it.” Reflecting on these experiences with the benefit of hindsight, Kong realises he was lucky and acknowledges his good fortune. “Plan three to five years ahead,” he suggests, “And always plan for the worst-case scenario.”
Entrepreneurs must balance their passion for their business with the demands of everyday life, and life insurance can play a vital role in this. “Life insurance is about mitigating risk,” explains Rena Lim, head of high net worth and financial advisory at Manulife Singapore. “We find that for entrepreneurs, it can be the safety blanket that gives them the confidence to take the risks needed to build a business.”
“Life insurance is about mitigating risk. We find that for entrepreneurs, it can be the safety blanket that gives them the confidence to take the risks needed to build a business.”
Rena Lim
Head of high net worth and financial advisory at Manulife Singapore
For Kong, the speculation paid off, with Concept First Physics and Math Learning Centre continuing to grow, impacting over 3000 students to date. But his attitude towards risk has changed. “Has it evolved over time? Definitely,” he asserts. “Now we go by a more strategic approach. We are now more careful, more prudent, and this is how we mitigate risk.”
While the business remains Kong’s main source of income, he has redrawn the boundaries between his business and personal finances. “Having a well-diversified financial portfolio helps mitigate concentration risks for entrepreneurs,” says Lim. “Because even a successful business like Calvin’s faces multiple uncertainties all of the time.”
From the pandemic to changing customer trends and price increases, unpredictable risks must be anticipated and managed. “We invest in our staff to maintain our brand reputation, we invest in new revenue streams to diversify the business, and we invest in low to medium-risk financial products to fight inflation,” says Kong, describing his proactive approach to managing potential challenges. Here, the flexibility of life insurance can be invaluable.
“Manulife finds that in periods of market uncertainty, maintaining liquidity becomes critical,” Lim says. “Insurance products such as whole life and universal life policies not only protect against financial risk but also offer liquidity that can be used strategically for future investments or business expansion.”
“Insurance products such as whole life and universal life policies not only protect against financial risk but also offer liquidity that can be used strategically for future investments or business expansion.”
Rena Lim
Head of high net worth and financial advisory at Manulife Singapore
Kong agrees, saying, “Being a business owner, one of the highest risks is uncertainty. And hence the income I bring home is also uncertain.” This is a risk many entrepreneurs address with personal life insurance. Kong regularly meets with his financial consultant to optimise his life insurance and harness its benefits for wealth preservation and intergenerational wealth transfer.
Calvin Kong, entrepreneur founder of Concept First Physics and Math Learning Centre
“Life insurance allows entrepreneurs to secure the financial future of their families while growing their businesses,” Lim explains. “In Calvin’s case, securing long-term coverage enables him to focus on business growth without worrying about unforeseen events.”
“Life insurance allows entrepreneurs to secure the financial future of their families while growing their businesses.”
Rena Lim
Head of high net worth and financial advisory at Manulife Singapore
With tailored life insurance solutions catering specifically to HNWIs like Kong, there are a raft of products offering flexible options for liquidity, legacy planning and wealth accumulation. And it’s never too early or too late. “At Manulife, we encourage new entrepreneurs to start planning early for financial risks beyond the immediate business horizon,” says Lim. “Life insurance provides both peace of mind and strategic value in managing those risks, ensuring that you can continue to build your business without the pressure of potential future shocks.”
Calvin Kong, entrepreneur founder of Concept First Physics and Math Learning Centre
“Our company is structured with work-life balance as one of our priorities,” says Kong. This reflects the entrepreneur’s approach to finances: balancing workplace and home-life commitments, supported by the reassurance that life insurance provides for his family’s future security. “Expect the unexpected,” Kong smiles. “It’s important to plan because I have a family. If the worst happens, are my children future-proof? That’s where I think life insurance is very important. We have to be covered.”
