KUALA LUMPUR (April 22): As interest from the wealthy continue to pour in, Malaysia is on track to have family offices managing assets worth RM2 billion out of a special zone in Forest City by the end of 2026.
A scheme that offers tax incentives for wealthy families to manage their assets out of Malaysia has so far secured nine offices with assets under management totalling about RM670 million, according to the Securities Commission Malaysia (SC).
“There’s been a very healthy expression of interest pipeline that we’ve seen,” managing director Azalina Adham told reporters after the release of the SC’s 2025 annual report.
The Single Family Office Incentive Scheme was launched in September 2024 as part of an effort to inject life into the Forest City development that now forms part of the Johor-Singapore Special Economic Zone.
The scheme aims to attract ultra-high-net-worth individuals and family investment entities into Malaysia with a 20-year tax incentive that grants exemption on all income including interest income, capital gains and foreign-sourced income.
While still at an early stage, Azalina said the regulator is encouraged by the pace of take-up, particularly as the tax incentive framework was only formalised in October last year.
To qualify, a family office must maintain assets worth at least RM30 million, allocate a minimum of RM10 million or 10% of total assets into local or promoted investments, and spend at least RM500,000 annually on local operations, including maintaining a physical office in Malaysia.
The SC does not disclose the identity of the participants due to confidentiality requirements, though The Edge had reported last year that billionaire Tan Sri Chua Ma Yu’s family office CMY Capital is among the early beneficiaries of the scheme.
CMY Capital is known for co-owning The St Regis Kuala Lumpur and was a cornerstone investor in major initial public offerings in Malaysia.
Another early participant is Yow Kee Family Office Sdn Bhd, owned by David Chong Kok Kong, founder of Portcullis, a regional trust and family office service provider. The firm was incorporated in December 2024 and operates from Forest City. Portcullis, founded in 1984 in Singapore, has offices in Singapore and Hong Kong, with licences in the Cayman Islands and Seychelles.