Johor Regent Tunku Ismail Sultan Ibrahim (middle) launching the Forest City Special Financial Zone (SFZ) at Forest City here in Iskandar Puteri, Johor on Friday. Looking on is Johor Mentri Besar Datuk Onn Hafiz Ghazi (left) and Finance Minister II Datuk Seri Amir Hamzah Azizan (right).
ISKANDAR PUTERI: Forest City will be the first location in Malaysia to offer a 0% tax rate for family offices, says Datuk Seri Amir Hamzah Azizan.
The Finance Minister II added that the 0% tax rate for family offices was among a competitive package of incentives to make Forest City a magnet for international capital.
“This includes a concessionary corporate tax rate between zero and 5%, and a special individual income tax rate of 15% for knowledge workers, and Malaysians, who choose to work here.
ALSO READ ; SFZ Forest City to be launched on Friday, incentives to be introduced
“These incentives are expected to attract businesses, financial institutions, and high-net-worth individuals, further augmenting Forest City’s position as a preferred investment destination,” he said.
Amir Hamzah said this in his speech during the launching of the incentive package for Forest City Special Financial Zone (SFZ) by Johor Regent Tunku Ismail Sultan Ibrahim here on Friday (Sept 20).
He added he was pleased to announce that Forest City would be the first location in Malaysia to offer a 0% tax rate for family offices.
Amir Hamzah said the single-family office scheme, coordinated by the Securities Commission Malaysia, aims to attract regional and Malaysian families to manage their family wealth from Malaysia.
ALSO READ : What's a single family office?
He added that supported by good infrastructure, a competitive talent pool, robust common law practices and effective governance, opportunities were abound for family offices.
“This scheme is aimed at being operational by the first quarter of 2025,” he said adding that there were an estimated 8,030 single-family offices globally currently and the number was projected to grow by 75% to more than 10,720 by 2030.
Amir Hamzah also said that the total estimated assets under management of family offices were expected to rise to US$5.4 trillion (RM22.6 trillion) from US$3.1 trillion (RM12.9 trillion) by 2030.
He added the establishment of family offices, therefore, would surely broaden the investor base to channel private capital into high-growth and high-value sectors.
“This is highly complementary of the ministry’s GEAR-uP initiative where the collective strength of government linked-investment companies (GLICs) is harnessed to catalyse economic growth through domestic investments.
“Hence, as we open our doors to welcome family offices, we are also inviting them into the good company of potential partners in the form of our GLICs and other institutional funds, and to partake in high-growth, high-value investments through venture capital and private equity opportunities,” he said.
