Forest City's zero-tax incentive for single-family offices could be gazetted by Thursday—SC representative

• The SFO scheme in Forest City is backed by a zero-tax incentive—first announced in September 2024—targeted at attracting ultra-high-net-worth individuals and family investment entities into Malaysia.

KUALA LUMPUR (May 19): The zero-tax incentive for single-family offices (SFOs) in Forest City could be gazetted by the Ministry of Finance as early as this Thursday, according to the Securities Commission of Malaysia (SC).

“We’re hoping [it will be gazetted by] this Thursday ... during a closed-door event. There will also be more announcements coming regarding the family office," said Amardeep Kaur, general manager of investment management development and market development at the SC.

The SFO scheme in Forest City is backed by a zero-tax incentive—first announced in September 2024—targeted at attracting ultra-high-net-worth individuals and family investment entities into Malaysia. The framework provides specific facilitation letters and incentives on a case-by-case basis, coordinated between the Ministry of Finance and the SC.

To date, several key aspects of the SFO scheme have yet to be clarified, including the scope of eligible investments that qualify for the tax incentive, the detailed criteria for investment professionals, and the potential rollout of multiple-entry exclusive visas for wealthy families and their employees.

Amardeep added that while only two family offices—prominent businessman Tan Sri Chua Ma Yu’s ONE KL Management Sdn Bhd and Yow Kee Family Office—have agreed to be named so far, there are others already in the pipeline.

“Those [two families] were very kind—they agreed to the publicity because they knew we needed investor confidence. People need to see [success stories] before they follow,” Amardeep told The Edge at the sidelines during the JS-SEZ Partners Dialogue: Advancing Facilitation event.

The SFO pilot was kickstarted by ONE KL Management in collaboration with Malayan Banking Bhd (KL:MAYBANK). The second named participant, Yow Kee Family Office, is believed to be exploring broader capital deployment across Malaysia and the region.

The SC confirmed it has received numerous other applications, but these would remain confidential unless the families themselves choose to go public.

“Moving forward, it will just be numbers. The space is very discreet. Even in Singapore, they only give aggregate data — you don’t see names in Parliament answers either,” she added.

The SC, which has been tasked with leading and overseeing the implementation of the SFO framework in the Forest City Special Financial Zone (FCSFZ), also serves as the one-stop centre for SFO facilitation, including visa matters and cross-border regulatory coordination.

“We will be the one-stop for visa purposes and for facilitation of cross-border matters with regulators such as the Bank of Thailand,” Amardeep said. “We coordinate directly for eligible families and invite them to approach us.”

According to Amardeep, the SC is also working on updating its public-facing materials and legal guidance. “We’re trying to see whether we can put more information on our website. It depends on our legal side,” she said.

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