RM500 Million to RM1.2 Billion Assets Under Management Projected from Family Office Scheme Within First Five Years - Amir Hamzah.

RM500 Million to RM1.2 Billion Assets Under Management Projected from Family Office Scheme Within First Five Years – Amir Hamzah.

KUALA LUMPUR: The government estimates the range of assets under management (AUM) to be between RM500 million and RM1.2 billion within the first five years of implementing the family office scheme, targeting families from within the country, the region, and abroad, such as from the Middle East.

According to BERNAMA News Agency, Finance Minister II Datuk Seri Amir Hamzah Azizan stated that the local investment range is projected to be between RM40 million and RM110 million, focusing on high-growth and high-value sectors. “The scheme is also a catalyst for human capital development and will bring about economic multiplier effects,” he remarked in response to Tan Hong Pin (PH-Bakri) during a session at the Dewan Rakyat. The scheme aims to stimulate new economic opportunities for the local professional services sector, with conditions such as a minimum salary of RM10,000, a physical office, local expenses of at least RM500,000, and local investment of at least 10% of AUM.

Amir Hamzah further explained that the
family office sector is expected to grow by 75% by 2030, aligning with a global trend. The Malaysian Securities Commission (SC) estimates multiplier effects of between three and five times from domestic investment and expenditure within the first five years. To qualify for the incentives under the scheme, entities must meet annual local investment and expenditure requirements.

Tan Hong Pin also inquired about the benefits of the scheme for local industries, particularly small and medium-sized enterprises (SMEs). Amir Hamzah highlighted that the single-family office scheme (SFO), launched in Forest City’s Special Financial Zone (SFZ) in Johor, mandates a local investment requirement of at least 10% of AUM. Investments into SMEs will be encouraged under the SFO scheme to catalyze alternative capital flow into these enterprises. The government plans to leverage existing initiatives to align with alternative funding opportunities, particularly in the capital market, where family offices are expected to contribut
e to SME capital.

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