Kuala lumpur: The Securities Commission Malaysia (SC) is aiming for RM2 billion in assets under management (AUM) by the end of 2026 through the Single Family Office (SFO) Incentive Scheme. This target follows the receipt of 30 Expressions of Interest since the scheme’s launch in September 2024.
According to BERNAMA News Agency, SC chairman Datuk Mohammad Faiz Azmi highlighted that six conditional approvals have already been granted, reflecting an indicative AUM nearing RM400 million. The scheme’s pipeline consists of Malaysian families repatriating wealth and foreign families establishing regional bases. Mohammad Faiz shared these insights during his opening remarks at the SFO Incentive Scheme Media Briefing.
The recent formal gazettement of the Income Tax (Single Family Office Incentive Scheme) (Pulau 1 of Forest City Special Financial Zone) Rules 2025 by the Ministry of Finance represents a significant advancement for the scheme. Mohammad Faiz emphasized Malaysia’s openness to long-term investments that contribute to national development.
He elaborated on the formalization of three pivotal tax orders, which include capital gains tax exemption, stamp duty relief, and a zero per cent tax rate for eligible income. These measures result from thorough preparation efforts.
The SFOs must manage a minimum of RM30 million in AUM, increasing to RM50 million after ten years, with assets centrally managed from Malaysia. This structure ensures domestic anchoring of investment decisions, oversight, and governance functions. Furthermore, SFOs are required to allocate RM10 million or 10 per cent of AUM, whichever is lower initially and higher subsequently, in eligible and promoted investments.
Each SFO must meet domestic economic substance requirements, such as a minimum annual operating expenditure of RM500,000 initially, escalating to RM650,000. Additionally, SFOs need to hire investment professionals and establish office space within the designated financial zone, contributing to sectors like legal, banking, property, and education.
The scheme’s 20-year duration and two-step certification process are designed to provide the necessary oversight, stability, and predictability for managing multi-generational wealth. Mohammad Faiz anticipates ongoing expansion of interest, particularly from Asia and the Middle East.