Keynote Address at Single Family Office Summit

Speaker: Datin Paduka Azalina Adham, Managing Director, Securities Commission Malaysia
Location: Securities Commission Malaysia, Bukit Kiara, Kuala Lumpur

Delivered: 22 May 2025

Mr Chong Jin Yoong, President of CFA Society Malaysia

Mr Kevin Li Geng, Chief Financial Officer, Country Garden Malaysia and Forest City

Distinguished guests, ladies and gentlemen,

Assalamualaikum. Good Morning and a warm welcome to the Securities Commission Malaysia (SC).

Opening

On behalf of SC, I would like to record our appreciation to our summit co-organisers, CFA Society Malaysia and Country Garden Malaysia, for their efforts and support in putting together this event.
Today’s summit themed, ‘Unlocking Family Capital for Long-Term Growth and Sustainability’, is in line with the SC’s commitment and effort to attract high-quality capital, to broaden the investor base into Malaysia and to deepen the capital market through tailored wealth solutions.
Over the past year, the Ministry of Finance and SC have been working closely with key stakeholders as well as market players to develop a set of targeted incentives for the Single Family Office Scheme (SFO Scheme) to attract both local and international family offices.
In September last year, the 2nd Finance Minister, YB Senator Datuk Seri Amir Hamzah Azizan, announced the Single Family Office Tax Incentive Framework, reflecting Malaysia’s ambition to be an attractive hub for wealth management and sustainable investment.
The presence and growth of family offices in Malaysia promises significant benefits - not just in terms of returns, but also in terms of supporting the broader economic development. It has the potential to drive sustainable economic growth, foster innovation and enhance the vibrancy of the local capital market.

Global Trends Driving Action

Ladies and gentlemen,

We are witnessing a remarkable shift in the global inter-generational wealth management landscape. According to Deloitte’s latest Family Office Insights Series, the number of single family offices (SFOs) in the Asia-Pacific region is expected to surge by 40% - from 2,290 in 2024 to 3,200 by 2030, which surpasses growth in most regions.
For Malaysia, these strong tailwinds present a unique opportunity to capitalise on the growing demand we see for more sophisticated and customised wealth management solutions in the Asia Pacific region.
Like many developing countries, Malaysia is also on the cusp of a significant intergenerational wealth transfer, with high-net-worth families expected to pass on substantial assets in the coming years.
Effective succession planning is not just about distributing assets - it is about preserving the founding vision, ensuring business continuity, and preventing potential conflicts. These family offices provide a platform for comprehensive wealth management, risk oversight and clear decision-making processes.
There is also a growing emphasis on ESG alignment, as families seek to ensure their investments reflect their core values and contribute positively to society. This shift means that family offices are also platforms for legacy-building, philanthropy, and sustainable impact.

The SFO Scheme
Ladies and gentlemen,

Considering all these trends, the government announced a suite of incentives as well as key requirements for Single Family Office Scheme in the Forest City Special Financial Zone.
Under this scheme, eligible family offices enjoy a highly attractive 0% tax rate for an initial period of 10 years, with a possible extension of another 10 years. This zero-tax rate applies comprehensively to all income streams, including foreign-sourced income and capital gains.
Additionally, there is a one-off exemption on Capital Gains Tax and Stamp Duty to further ease the process of families establishing their offices here.
To ensure genuine economic activity and sustainable growth, family offices must meet certain requirements.
For the first 10 years, a minimum Asset Under Management (AUM) of RM30 million is required, increasing to RM50 million for the next 10 years.
Family offices must also commit to local investments of at least RM10 million or 10% of their AUM, whichever is lower in the first 10 years.
Operationally, in terms of substance requirements, family offices are expected to maintain a physical office, employ at least 2 full-time employees, and incur a minimum annual operating expenditure of RM500,000 - with plans to scale these requirements in future phases.
In terms of Cross-border funds - Bank Negara Malaysia will also facilitate cross-border fund movements, allowing families to move foreign currency funds in and out of Malaysia, especially for funds sourced from abroad. This alleviates a major friction for global investors and enhances Malaysia’s competitiveness as a wealth management hub.
Visa - To support families and professionals relocating to Malaysia, the scheme offers the Resident Pass Talent (RPT) Visa, which covers family members as well as foreign professionals. This RPT visa is aligned with the scheme’s duration, providing residency for up to 20 years (10 years plus a 10-year extension). SC is working closely with the Home Affairs Ministry via Talent Corp to facilitate this process.
The SFO Scheme incorporates a 2-step certification process by the SC. This includes an initial consultation phase followed by an annual review to ensure ongoing compliance with requirements for the tax incentives.
In connection to this, the Ministry of Finance has provided a clear pathway to operationalise the Single Family Office Scheme. Hence, the SC has started accepting and processing applications, on a case-by-case consideration by the Minister of Finance. All the relevant details and forms — including the list of permitted and promoted investments — will be made available in the updated FAQs early next week.
The SC has also expanded the list of Local Promoted Investments under the scheme. This now includes companies approved by MIDA, under the Johor-Singapore Special Economic Zone (JS-SEZ) Tax Incentive Package. Investments into these companies will enjoy a 1.5 times multiplier in calculating the scheme’s local AUM requirement.
This complements the existing list of Local Promoted Investments, including Equity Crowdfunding (ECF) and Peer-to-Peer financing (P2P financing) campaigns as well as companies aligned with NIMP 2030 prioritised sectors.
Together, these additions reflect a cohesive strategy to channel family office capital into priority sectors, strengthen the innovation ecosystem, and align long-term wealth with national development goals.

Malaysia’s Distinct Value Proposition
Ladies and gentlemen,

Let me touch briefly on other distinct advantages that sets Malaysia apart.
Beyond financial incentives, Malaysia offers a high quality of life, cultural diversity, and strategic access to ASEAN markets, making it an attractive lifestyle destination for families seeking both personal and professional fulfilment.
In addition, Malaysia offers a well-established common law legal system, providing certainty and familiarity for international investors. Strong standards of governance and professional ecosystem of intermediaries and service providers are also key features.
Malaysia offers a more cost effective and lower entry thresholds compared to other regional hubs. Our English-speaking talent pool further ensures seamless communication and professional expertise for family offices.
We are also a global leader in Islamic finance, with a comprehensive ecosystem that supports Shariah-compliant wealth management solutions.
Our leadership in Islamic finance, combined with a growing focus on ESG principles, makes Malaysia especially attractive to value-driven capital. Families seeking to align their investments with ethical and sustainable goals will find our offerings highly complementary.
In summary, Malaysia delivers a compelling combination of legal certainty, cultural richness, cost efficiency, and strategic financial offerings. We invite families to consider us not just as a destination for their wealth, but as a place to build enduring legacies with flexibility and confidence.

Closing

Ladies and gentlemen,

I wish to emphasise that the Single Family Office Scheme is not a short-term initiative - it is a multi-generational undertaking. It represents Malaysia’s commitment to charting a new era for family wealth management.
Building a thriving family office ecosystem requires vision, but more critically, collaboration. The SC remains committed to fostering a collaborative environment. We will continue to engage with all interested parties - families, service providers, investors, and partners- both domestically and across the region, to ensure that Malaysia’s family office ecosystem is vibrant, well-informed, and globally competitive.
I am pleased to share that the Single Family Office incentive scheme is gaining momentum. To date, we have granted several conditional approvals and have been receiving a growing number of expressions of interest from families and entities eager to establish their presence here.
To that end, I also wish to emphasise that service providers play a very important role and are critical components of the SFO scheme. Families would need to rely on an array of professional advisers from law firms to tax advisors to trustees, capital market players, fund managers, and bankers to support their growth here.
I also hope that this summit marks the beginning of a collaborative network and vibrant ecosystem for family offices. Together, we can ensure that this initiative not only attracts capital but also nurtures long-term growth, innovation, and legacy-building for generations to come. With that, I want to wish everyone a great and productive day ahead.

Thank you.