Why Forest City Family Office benefits to Malaysia Families?

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Forest City’s Single Family Office (SFO) regime gives Malaysian families a 0%‑tax, onshore, SC‑recognized base to manage global wealth, succession and governance. 

1. 0% tax and onboarding reliefs

• 0% tax on family‑office vehicle: A qualifying Single Family Fund Company (SFOV) in Forest City enjoys a 0% income‑tax rate on its chargeable income for 10 years, extendable to another 10 years (up to 20 years total) if conditions are met.
• Capital‑gains and stamp‑duty exemptions: Unlisted share transfers into the SFOV can enjoy CGT exemption (for disposals into the SFOV between 1 Sep 2024 and 31 Dec 2034) and related stamp‑duty reliefs, allowing families to migrate existing structures into the Forest City FO with minimal friction.

2. Strong onshore base with global reach

• First 0% FO hub in Malaysia: Forest City SFZ is the first location in Malaysia offering 0% tax for family offices, coordinated by the Securities Commission (SC), making it a serious alternative to offshore booking centres.
• Keep control and residency in Malaysia: Families can locate their investment committee, CIO, risk, governance and reporting functions onshore, while still investing globally and plugging into Labuan and Singapore VCC or other offshore structures.

3. Clear SFO framework and AUM threshold

• Structured SFO rules: The Forest City SFO Incentive Scheme requires:
  • A Single Family Fund Company (SFOV) and a Single Family Office Management Company (SFO‑MC),
  • Both wholly owned or controlled by members of a single family, operating from Pulau 1 in the SFZ.
• Minimum AUM and substance: Families must have at least RM30m AUM and meet substance conditions (e.g. one investment professional with a minimum salary, minimum local operating expenditure around RM500k per year), which filters for serious HNW/UHNW families while staying achievable.

4. Personal‑tax and residency advantages

• 15% personal income‑tax rate for “knowledge workers”: Investment professionals (including Malaysian family members working in the SFO) in Forest City can enjoy a 15% flat tax rate on employment income, improving net take‑home pay versus the normal scale rates.
• Fast‑Track Resident Pass – Talent (FT‑RPT): The SFO scheme is linked to a 10‑year renewable resident pass for key family members and FO professionals, extendable to spouses and children, making long‑term Malaysia‑based residency and FO operations easier.

5. Strategic fit for Malaysian families

• Re‑onshoring and centralisation: Many Malaysian families currently use Singapore/Labuan/Dubai as their FO base; Forest City lets them re‑centre command and booking in Malaysia while still working with Labuan foundations, Labuan private funds, or a Singapore VCC as outer layers.
• Nation‑building alignment: Investments into promoted sectors (NIMP 2030, JS‑SEZ, sustainable and waqf‑linked assets, ECF/P2P) get a 1.5x multiplier for AUM, aligning family capital with national development priorities while counting more toward the AUM test.