Malaysia is making significant progress in establishing itself as a key hub for family offices and wealth management. Forest City has been selected as a prime location for investment expansion, with several key initiatives currently in progress. With regulatory developments expected soon, a more structured approach will be available for family offices planning to set up operations in the region.
In September 2024, the Securities Commission Malaysia (SC) introduced the Single-Family Office (SFO) Scheme, a strategic move designed to attract ultra-high-net-worth individuals (UHNWIs) and their family offices to Malaysia. This initiative provides a 0% concessionary tax rate on eligible investment income through the Single-Family Office Vehicle (SFOV 1), making Malaysia a competitive destination for wealth management.
A pivotal aspect of this initiative is Forest City’s designation as the first location in Malaysia to implement the tax incentives under the SFO scheme. This selection highlights Forest City’s increasing prominence as a financial and investment hub.
We have been made aware that the SC is in the final stages of defining a comprehensive regulatory framework to govern family office structures in Malaysia. Based on internal discussions so far, these official regulations are expected to be published by sometime in March 2025. Once the framework is in place, there will be a clearer guideline on operational protocols, enabling a streamlined approach for family offices seeking to establish themselves in Malaysia.
Additionally, on 18th February 2025, the Invest Malaysia Facilitation Centre Johor (IMFC-J) was officially launched in Forest City by Johor Regent Tunku Ismail Ibni Sultan Ibrahim. This newly created centre is set to become a crucial hub for overall investment-related matters and economic facilitation.
IMFC-J is a collaborative initiative managed by:
IMFC-J functions as a one-stop centre for investors, simplifying the investment process and minimising bureaucratic challenges. The IMFC-J focuses primarily on the Johor-Singapore Special Economic Zone (JS-SEZ), an initiative designed to strengthen cross-border economic cooperation between Malaysia and Singapore.
Through IMFC-J, investors and businesses will have access to accelerated project approvals, regulatory advisory services, and investment support, making it easier to navigate Malaysia’s business environment. The centre will also play a key role in aligning economic incentives, ensuring investors can optimise financial benefits while adhering to local regulations.
According to MIDA, IMFC-J is expected to drive investment growth by streamlining procedures and reducing administrative delays. Meanwhile, IRDA emphasises the centre’s role in offering regulatory compliance assistance, tax incentives, and business-matching services.
With the upcoming regulatory framework for family offices and the operationalisation of IMFC-J, Forest City is positioned to become a leading hub for wealth management and investment expansion in the region. These initiatives represent a major step toward Malaysia’s goal of attracting high-net-worth individuals and global investment funds, further enhancing its financial sector.
It is anticipated that additional updates will be provided by March 2025, as that is when the Securities Commission is expected to finalise and release the official family office regulations. With these ongoing developments, Forest City is on track to become a key financial hub in Southeast Asia, offering a unique combination of investment incentives, a strategic location, and strong economic infrastructure.
Hence, businesses and investors are encouraged to engage with our Malaysian Team lead (Nathan Maharajah) at enquiry@familyofficeforestcity.my or WhatsApp at +65 9810 1685 for further details and to take advantage of new opportunities within Forest City and the broader Johor-Singapore economic corridor. The InterAsia Law Alliance has a team of Malaysian-qualified lawyers and any Malaysian-law advice required for the setting up of the SFOVs and related services will be handled by Malaysian qualified-lawyers.