Amir Hamzah: Malaysia to attract family offices with assets of RM500m to RM1.2b

• “The family office sector is projected to grow by 75% globally by 2030."

KUALA LUMPUR (Nov 5): Malaysia aims to attract both affluent locals and foreigners having assets under management (AUM) between RM500 million and RM1.2 billion to establish their family offices in the country over the next five years.

This move is expected to generate local investments of RM40 million to RM110 million, directed towards high-growth, high-value sectors, said Finance Minister II Datuk Seri Amir Hamzah Azizan.

“The family office sector is projected to grow by 75% globally by 2030. The Securities Commission (SC) also expects a potential economic multiplier effect of three- to five times the local investment within the first five years,” Amir told the Dewan Rakyat on Tuesday.

A family office is a comprehensive wealth and asset management firm that works with ultra-high-net-worth families, to grow and transfer wealth across generations.

In September, the government announced a range of incentives to make Forest City in Johor a hub for family offices in Malaysia.

To qualify for these incentives, family offices must meet specified local investment and spending requirements each year, Amir noted.

Among the requirements are a monthly salary of at least RM10,000 for an investment executive, maintaining a physical office, annual local expenses of at least RM500,000, and a local investment of at least 10% of AUM. 

Amir said that these requirements are intended to create new economic opportunities within the local professional services sector, thereby driving economic growth.

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