“Malaysia is strengthening its capital market with a robust regulatory framework and family office incentives to drive economic growth, innovation, and wealth reinvestment, says the Securities Commission.“
Kuala Lumpur, 24th Mar 2025, 02.55pm – Malaysia is poised to enhance its capital market, boost local businesses, and elevate global competitiveness by fostering a supportive environment for family offices, backed by a strong regulatory framework, according to the Securities Commission Malaysia (SC).
In its Annual Report 2024 released today, the SC highlighted that the development of family offices aligns with Malaysia’s vision for sustainable and inclusive economic growth. By reinvesting wealth domestically, family offices can drive business expansion, spur innovation, and stimulate economic progress.
“The establishment and growth of family offices in Malaysia hold immense potential for the broader economy. Domestic wealth reinvestment has the power to fuel industries, create jobs, and drive innovation,” the SC stated.
Beyond financial contributions, family offices can also play a crucial role in philanthropy, supporting community development and social well-being.
Recognizing this potential, the Finance Ministry and SC introduced the Single Family Office (SFO) Tax Incentive Scheme, aimed at attracting both local and foreign family offices. Additionally, the Forest City Special Financial Zone (FCSFZ) was established to encourage foreign family offices to invest in Malaysia and entice Malaysian families with overseas investments to repatriate their wealth.
The SFO Tax Incentive Scheme grants a 10-year zero-rated tax concession on income generated from eligible investments under the Single Family Office Vehicle (SFOV). The tax incentive can be extended for another 10 years, provided the family office meets conditions such as maintaining assets under management (AUM) of at least RM30 million.
According to SC, this initiative is expected to generate an economic multiplier effect of between RM3.9 billion and RM10.7 billion, creating skilled employment opportunities and increasing demand for ancillary financial services.
Citing McKinsey, the SC noted that Asia-Pacific’s ultra-high- and high-net-worth families are set to transfer US$5.8 trillion in intergenerational wealth between 2023 and 2030—the largest wealth transfer in the region’s history. Malaysia’s proactive family office initiatives position the country to benefit from this wealth shift, further strengthening its financial sector.
