Initial Criteria for Family Office Setup in Forest City Special Financial Zone Released

The Securities Commission Malaysia (SC) welcomes the Government’s introduction of a new Family Office incentive scheme aimed at strengthening the country’s investment landscape.

Announced by Minister of Finance II, Senator Datuk Seri Amir Hamzah Azizan, as part of the Forest City Special Financial Zone initiative, the Single Family Office (SFO) scheme offers a 0% concessionary tax rate on income generated by eligible investments through Single Family Office Vehicles (SFOV).

1. Location: Establish and operate a registered office in Pulau 1, Forest City Special Financial Zone
2. Duration: 20 years, covering the initial period of 10 years and additional/subsequent 10 years
3. To qualify for Initial Period (10 years):
   • 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 SFP which is a related company of SFOV to be set up and operate out of Pulau 1, Special Financial Zone with at least one investment professional with minimum monthly salary of RM10,000
   • Hold asset under management (AUM) at least RM30 million; meet minimum local investment in eligible and promoted investments of at least 10% of AUM or RM10 million whichever is lower;
   • SFOV to spend operating expenditure (OPEX) 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;
4. To qualify for Additional Period (addtional 10 years):
   • Hold AUM of at least RM50 million; meet minimum local investment in eligible and promoted investments of at least 10% of AUM or RM10 million whichever is higher;
   • SFOV to spend OPEX locally (30% higher than Initial Period) a minimum of RM650,000 annually;
   • Employ a minimum of four full-time employees.