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Forest City SFZ first in M'sia to offer zero tax on family wealth offices. 

SKANDAR PUTERI, Sept 20 — Forest City will be first location in Malaysia to offer a zero tax on family wealth offices, a part of its incentive packages. Finance Minister II Datuk Seri Amir Hamzah Azizan said zero tax on family wealth offices was among incentives to turn Forest City a magnet for international capital. He added Forest City would be first location in M'sia to offer incentive. Amir Hamzah said among other incentives include a concessionary corporate tax rate between zero & 5% & a special individual income tax rate of 15% for knowledge workers M'sians, who choose to work there.

1. “These incentives are expected to attract businesses, financial institutions, & high-net-worth individuals, further augmenting Forest City’s position preferred investment destination,” he said in his speech during launch incentive package for Forest City Special Financial Zone (SFZ). Johor Regent Tunku Ismail Sultan Ibrahim graced event also attended by Johor Menteri Besar Datuk Onn Hafiz Ghazi. Amir Hamzah said single-family office scheme, coordinated by Securities Commission M'sia, was to attract regional & Malaysian families to manage their wealth.
   

There is an estimated 8,030 single-family offices globally today & projected to grow by 75% to more than 10,720 by 2030. “Total estimated assets under management of family offices are expected to rise to US$5.4 trillion (RM22.6 trillion) from US$3.1 trillion by 2030,” he said.
Amir Hamzah added establishment of family offices will broaden investor base to channel private capital into high-growth, high-value sectors. “This is highly complementary of the ministry’s GEAR-uP initiative where the collective strength of government linked-investment companies (GLICs) is harnessed to catalyse economic growth through domestic investments.

“Hence, as we open our doors to welcome family offices, we are also inviting them into the good company of potential partners in the form of our GLICs and other institutional funds, and to partake in high-growth, high-value investments through venture capital and private equity opportunities,” he said, adding that Forest City SFZ presents untapped potential as an ideal business support location.

Amir Hamzah also added that Malaysia’s banking institutions, insurance, capital market intermediaries and other eligible financial sector entities will also enjoy incentives that include special deductions on relocation costs, enhanced industrial building allowances and withholding of tax exemptions. BeHe said with the support of Bank Negara Malaysia, locally incorporated foreign banks will enjoy regulatory flexibilities to open additional branches within the Forest City SFZ benefit from foreign exchange flexibilities for offshore borrowing in foreign currency and investment in foreign currency assets.

Amir Hamzah said Forest City SFZ has the potential to drive growth from Johor into the rest of the Asean region through robust participation by local and international stakeholders. “Forest City SFZ also has the potential to mature into a globally recognised financial hub, the likes of Shenzhen in China and Dubai International Financial Centre in the UAE,” he said. On August 25 last year, Prime Minister Datuk Seri Anwar Ibrahim announced the formation of SFZ in Forest City and incentives to boost Johor’s economic activities and surrounding areas. He hinted the Forest City SFZ would offer tax breaks and easy visa access for foreign professionals living in Singapore to travel to and from south Johor, where Forest City is located.
https://www.malaymail.com/news/malaysia/...ces/151027