KUALA LUMPUR, Sept 23 — The Securities Commission Malaysia (SC) today unveiled the framework for a new Family Office incentive scheme designed to enhance Malaysia’s investment landscape.
In a statement, the SC said the scheme offers a zero per cent concessionary tax rate on income generated by eligible investments from the Single Family Office Vehicle (SFOV).
Forest City will be the first location in Malaysia to provide these incentives.
The incentives are contingent on several conditions: SFOVs must establish and operate a registered office in Pulau 1, Forest City Special Financial Zone, and the incentives will be available for 20 years, divided into an initial 10-year period followed by another 10 years.
Other requirements:
- The SFOV must be a new investment holding company incorporated in Malaysia and seek pre-registration with the SC on the eligibility of the tax incentives;
- Management company or SFO2 which is a related company of SFOV to be set up and operate out of Pulau 1, Forest City Special Financial Zone with at least one investment professional with minimum monthly salary of RM10,000;
- Hold assets under management (AUM) of at least RM30 million; meet minimum local investment in eligible and promoted investments of at least 10 per cent of AUM or RM10 million, whichever is lower;
- SFOV to spend operating expenditure locally a minimum of RM500,000 annually;
- Employ a minimum of two full-time employees of whom at least one is an investment professional, with minimum monthly salary of RM10,000.
The SFO or management company may not need to get certain licenses under the Capital Markets and Services Act 2007 (CMSA), such as for fund management, as long as it only provides services for its related corporation, the SFOV,” it said.
SC chairman Datuk Mohammad Faiz Azmi said the SFO scheme positions Malaysia as an attractive destination for both regional and local families to manage their wealth.
"The estimated economic multiplier of this initiative, including local substance requirements, is projected to range from RM3.9 billion to RM10.7 billion.
"This also encompasses the creation of skilled employment and increased demand for ancillary services,” he added.
The SC noted that eligible SFOVs may apply for certification for purposes of tax incentives, provided they meet the necessary conditions.
The commission is currently collaborating with relevant stakeholders to operationalise the scheme by the first quarter of 2025. — Bernama
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