Malaysia family office scheme tops target with indicative RM20.8 billion

Indicative assets under management attracted by Malaysia’s Single Family Office (SFO) Incentive Scheme reached RM20.8 billion by the end of September, Securities Commission Malaysia (SC) executive director Shahrul Amry Abd Malek said. That was more than 10 times the original target of RM2 billion.

Addressing the Family Office Summit Malaysia, Shahrul said domestic and overseas families had shown increasing interest following the September 2024 launch. They included Malaysians returning their wealth to Malaysia. He expected the scheme to draw fresh capital market investments of at least RM200 million.

The incentive sits within Johor’s Forest City Special Financial Zone initiative. Offices managing one family’s wealth can qualify for a tax rate of zero per cent lasting up to 20 years, but must meet conditions covering investment, employment and expenditure locally.

The SC is introducing the Multi-Family Office (MFO) model announced in the 2027 Budget. This permits families to hire an SC-licensed fund manager directly, rather than run a separate management company and handle the associated staffing, governance, accounts and audits.

Families can keep their individual investment mandates and choose an SFO, an MFO or both as their requirements change. Shahrul said the flexibility would not weaken eligibility conditions: every Single Family Office Vehicle must still meet the requirements for all its income to receive the tax benefit.

For newly approved families, the first certification application must be made within 18 months after conditional approval. Shahrul said this was intended to turn approvals into operating family offices.

The SC is also broadening eligible local expenditure to count contributions to the Iskandar Regional Development Authority’s Social Fund. The fund supports programmes in Johor covering education, skills and community development.