The scheme, unveiled by finance minister II Amir Hamzah Azizan last Friday, is part of a broader initiative to boost Malaysia’s investment landscape, specifically within the Forest City Special Financial Zone.
To qualify, single family offices must establish and operate a registered office in Pulau 1, Forest City Special Financial Zone, the SC said in a statement today.
It added that the SFOV must be a newly incorporated investment holding company in Malaysia and pre-registered with the commission.
The incentive is valid for a period of 20 years, divided into an initial 10-year period and a subsequent 10-year extension, with each phase’s requirements increasing over time.
The SC also set out several conditions for the scheme, including a minimum asset under management (AUM) of RM30 million, local investments of at least 10% of AUM or RM10 million (whichever is lower), and a minimum annual operating expenditure (Opex) of RM500,000 within Malaysia.
The SFOV must also employ at least two full-time staff, one of whom must be an investment professional earning a minimum monthly salary of RM10,000, it added.
The SC also said family offices looking to extend the tax incentive beyond the initial 10 years must meet stricter conditions, including managing at least RM50 million in AUM and increasing their local Opex to RM650,000 annually.
Additionally, they must expand their workforce to four full-time employees.
“The SFO or management company may not need to get certain licences under the Capital Markets and Services Act 2007, such as for fund management, as long as it only provides services for its related corporation, the SFOV,” it said.
The SC expects to operationalise the family office scheme by the first quarter of 2025.
Meanwhile, SC chairman Faiz Azmi said the family office scheme is projected to generate between RM3.9 billion and RM10.7 billion, while creating skilled jobs and driving demand for ancillary services.
“Establishing the Single Family Office Scheme positions Malaysia to enhance its investor base by attracting regional and Malaysian families to manage their wealth from Malaysia,” he said.