Malaysia has formalised its Single Family Office (SFO) incentive scheme with the gazettement of new rules, marking a key step in developing its wealth management ecosystem.
The Ministry of Finance gazetted the Income Tax (Single Family Office Incentive Scheme) (Pulau 1 of Forest City Special Financial Zone) Rules 2025 on 3 October 2025, providing clarity and long-term policy certainty for families and advisers.
According to the Securities Commission Malaysia (SC), interest has been strong since the scheme’s launch in September 2024.
Six families have received conditional approval, with indicative assets under management of close to RM400 million, and more than 30 expressions of interest have been submitted.
The SC is targeting RM2 billion in AUM by the end of 2026.
Interest comes from Malaysian families seeking to repatriate wealth and international families looking to establish an ASEAN base.
Recent outreach in Taiwan and Oman drew attention from family advisers, private bankers and trustees.
The framework offers a 20-year incentive horizon split into two 10-year periods, with exemptions on income, capital gains, foreign-sourced income, stamp duty, and dividend income for shareholders.
A two-step process applies: initial conditional approval via mandatory SC consultation, followed by annual tax certification to confirm ongoing compliance.
A one-stop centre has been established to streamline services.
“The one-stop service coordination model further gives clarity and eliminates complexities, making Malaysia an attractive destination for wealthy families and international investors.
Looking ahead, we anticipate continued expansion of both domestic and international interest,”
said SC Chairman Dato’ Mohammad Faiz Azmi.
Single family offices are required to operate from the Forest City Special Financial Zone, employ local staff and invest in Malaysia’s capital markets.
Investments into promoted sectors, including NIMP 2030, the Johor–Singapore Special Economic Zone, equity crowdfunding, peer-to-peer financing, sustainability and waqf-linked initiatives, qualify for a 1.5x AUM multiplier.
The SC will expand its annual Family Office Summit and publish a detailed guide to help families navigate the regulatory framework.
A dedicated visa track for families and investment professionals accompanies the scheme.
With the gazettement, the SFO scheme is fully operational.
Featured image: Edited by Fintech News Malaysia, based on image by Freepik
