KUALA LUMPUR: The Single Family Office (SFO) incentive is gaining traction, with the Securities Commission Malaysia (SC) having approved several applications amid rising interest from families and businesses looking to establish a presence in the country.
Citing a report, SC managing director Datin Paduka Azalina Adham said the number of SFOs in the Asia-Pacific region is expected to grow by 40 per cent, from 2,290 in 2024 to 3,200 by 2030, surpassing growth in most other regions.
In Malaysia, she said these strong tailwinds present a unique opportunity to capitalise on the growing demand for more sophisticated and customised wealth management solutions across the Asia Pacific region.
"Like many developing countries, Malaysia is also on the cusp of a significant intergenerational wealth transfer, with high-net-worth families expected to pass on substantial assets in the coming years.
"There is also a growing emphasis on environmental, social and governance alignment, as families seek to ensure their investments reflect their core values and contribute positively to society.
"This position family offices as platforms for legacy-building, philanthropy, and sustainable impact," she said during her keynote address at the Single Family Office Summit, here today.
In light of these trends, Azalina said the government has announced a suite of incentives and key requirements for the SFO scheme within the Forest City Special Financial Zone.
Under this scheme, eligible family offices enjoy a highly attractive zero per cent tax rate for an initial 10-year period, with a possible 10-year extension. They are also entitled to a one-off exemption on capital gains tax and stamp duty - measures designed to ease the establishment process.
Azalina stressed that the SFO scheme is a multi-generational initiative, reflecting Malaysia’s commitment to charting a new era of family wealth management.
She noted that the SC would continue to engage with all interested parties - families, service providers, investors, and partners - both domestically and across the region to ensure Malaysia’s family office ecosystem remains vibrant, well-informed, and globally competitive.
"I also wish to emphasise that service providers play a very important role and are critical components of the SFO scheme.
"Families will need to rely on an array of professional advisers, from law firms to tax advisors to trustees, capital market players, fund managers, and bankers to support their growth here," she added. - Bernama
