Johor Bahru, Jan 20 — Forest City will be the first location in Malaysia to offer a 0% tax rate for family offices. Second Finance Minister Datuk Seri Amir Hanzah revealed that in order for a family office in Forest City to enjoy the 0% tax rate, it needs to have assets of more than RM30 million, and it must also invest and hire local staff in Malaysia.
He also revealed that the 0% tax rate concession for family offices will last for 10 years, and if they want to continue to enjoy the concession, they must meet new operating requirements, including expanding their capital investment and staff scale.
“Family offices will be a new area of development in Malaysia, creating jobs for the people.”
Amir Hanzah made the above remarks at a press conference today after the launch ceremony of the special tax incentives for the Forest City Special Financial Zone. Present at the event were His Royal Highness Tunku Ismail, Regent of Johor, Johor Menteri Besar Datuk Onn Hafiz and Johor State Secretary Tan Sri Azmi, among others.
Amir Hanzah said there is huge potential for family offices, with total global assets under management expected to reach US$7 trillion (nearly RM30 trillion) by 2030.
He said Forest City is an ideal location with well-developed infrastructure and proximity to neighbouring Singapore.
“The government is committed to driving Malaysia’s economic growth by making Forest City a special financial zone in the hope of attracting investors to Malaysia.”
