In a speech, second finance minister Amir Hamzah Azizan also announced that family wealth offices will have a 0% tax rate, a first in Malaysia.

He said this is aimed at attracting regional and local families to manage their family wealth from Malaysia, with the scheme expected to be operational by the first quarter of next year.

“There are an estimated 8,030 single family offices globally today. This is projected to grow by 75% to more than 10,720 by 2030. Total estimated assets under the management of family offices are also expected to rise to US$5.4 trillion by 2030, from US$3.1 trillion currently.

“The establishment of family offices, therefore, will surely broaden the investor base to channel private capital into high-growth, high-value sectors,” he said at the launch.

Amir said the government will impose a special individual income tax rate of 15% for Malaysians as well as knowledge-based workers who work in the SFZ.

“These incentives are expected to attract businesses, financial institutions and high-net-worth individuals, further augmenting Forest City’s position as a preferred investment destination,” he added.

He also spoke of the need to develop local talent, particularly to institutionalise talent development within Johor itself, in order to support Forest City’s growth.

Amir said the workforce must be equipped to fulfill the demands of the financial sector, which he added was transforming at a rapid pace.

“The goal is to create high-skilled, high-value jobs for Malaysians and to attract top talent from around the world. This is critical to ensure sustainable growth of Forest City and the Malaysian economy as a whole.

“Today, we have fortified the Forest City SFZ with a basket of attractive incentives designed to catalyse the birth of a new financial and economic hub in the region.

“We are confident that the incentives will bring substantial benefits to the rakyat, generate high-value jobs, foster economic growth, and enhance Malaysia’s standing on the global stage,” he said.