Malaysia’s new package of tax incentives designed to attract single-family offices (SFOs) could deliver RM10.7 billion in economic benefits, but success will depend on more than just attractive incentives, according to Juwai IQI’s Global Wealth Office head, Haroon Anwar.
In a statement today, Haroon said Malaysia has a strong opportunity to position itself as an accessible hub for small and mid-sized family offices, especially from South Asia and Southeast Asia, but it must pair fiscal incentives with policy stability, credibility, and ecosystem maturity to fully realise its potential.
“The Family Office Boom Is Here”
Haroon noted that global wealth transfer and the rise of new regional fortunes are fuelling the expansion of family offices across Asia.
“Malaysia can succeed as an accessible base for smaller and newer family offices, mostly from South Asia and Southeast Asia,” he said.
“In the coming years, we expect to see new infrastructure to support connectivity and lifestyle in Forest City, updated banking regulations and tax laws, a visa for expert financial professionals, and ambassadors promoting Malaysia’s financial system globally.”
Family offices are private entities established by ultra-high-net-worth families to manage their wealth and investments. While major offices such as Indonesia’s Hartono Family Office manage assets worth up to RM88 billion, Malaysia is targeting smaller-scale SFOs managing around RM30 million and above — a segment often overlooked by global wealth hubs.
Asia’s Growing Opportunity
According to Haroon, the number of Asian single-family offices is expected to rise by 40%, from 2,290 in 2024 to 3,200 by 2029, driven by intergenerational wealth transfers.
“By 2035, about 40% of all family offices operating today will have passed their wealth to the next generation,” he said.
“Malaysia is well-positioned to attract some of these offices, especially those seeking affordability, connectivity, and stability. Each family office that sets up locally will also be required to employ local talent and spend at least RM500,000 annually in the domestic economy — contributing to Malaysia’s projected RM10.7 billion in economic growth.”
Malaysia’s Value Advantage
Haroon pointed out that Malaysia offers a lower entry threshold and generous tax benefits compared to established hubs like Hong Kong and Dubai.
Lower minimum assets: RM30 million — one-quarter of Hong Kong’s minimum and far below Dubai’s RM211 million requirement.
Lower operating costs: Minimum RM500,000 per year, compared to substantially higher levels in other financial centres.
Tax incentives: Blanket 0% income tax for up to 20 years, plus one-off stamp duty and capital gains tax exemptions.
“In that respect, no other wealth hub quite matches Malaysia’s incentives for smaller family offices,” Haroon said.
What Malaysia Needs Next
Despite its competitive edge, Haroon emphasised that incentives alone are not enough. He outlined three areas Malaysia must strengthen to cement its position as a trusted wealth management centre:
Policy and regulatory stability — Clear, long-term frameworks for taxation, succession, trusts, and inheritance to reduce ambiguity and build investor confidence.
Credibility — Promotion by world-class advisors and success stories that demonstrate Malaysia’s potential as a reliable family office hub.
Ecosystem maturity — Strengthening capital markets, developing financial products tailored to family offices, and creating a “Family Office Talent Pass” to attract global wealth management professionals.
“Family offices follow stability, credibility, and maturity of ecosystems — not just incentives,” Haroon said. “Malaysia must act quickly to develop these pillars if it wants to compete with established centres like Hong Kong or Singapore.”
He added that Malaysia could define its niche as the regional home for small and medium-sized family offices, generating billions in long-term economic benefits while supporting the country’s ambition to become a global wealth management hub.
