Malaysia Securities Commission says Forest City single family office tax incentive rules have been gazetted and scheme is fully operational

The Securities Commission Malaysia reported that the Ministry of Finance has gazetted the Income Tax rules for the Single Family Office (SFO) Incentive Scheme covering Pulau 1 of the Forest City Special Financial Zone, formalising a dedicated long-term tax incentive framework and bringing the scheme into full operation. The SC has granted conditional approval to six families with indicative assets under management (AUM) close to RM400 million and has received more than 30 expressions of interest, with a target of RM2 billion in AUM by end-2026. The framework offers a 20-year incentive horizon (10 + 10 years) and provides exemptions on income, capital gains, foreign-sourced income, stamp duty and dividend income for shareholders. Oversight is structured through a two-step process comprising initial conditional approval following mandatory SC consultation and annual tax certification to confirm ongoing compliance. Eligibility embeds substance requirements, including establishing offices in the zone, employing local staff and investing in Malaysia’s capital markets, with a 1.5x AUM multiplier for investments in promoted sectors such as the New Industrial Master Plan 2030, the Johor–Singapore Special Economic Zone, equity crowdfunding, peer-to-peer financing, sustainability and waqf-linked initiatives. Supporting features include a dedicated visa track for families and investment professionals and a one-stop centre to streamline services. Next, the SC plans to expand its annual Family Office Summit and publish a detailed guide to help families navigate Malaysia’s regulatory framework and ecosystem.