Family Office in Malaysia: 6 Major Reasons You Must Know Now
The global family office sector has experienced significant growth, managing approximately $3.1 trillion in assets as of 2024, with projections estimating an increase to $5.4 trillion by 2030. Notably, the Asia-Pacific region has surpassed Europe in the number of family offices, hosting 2,290 compared to Europe’s 2,020—highlighting Asia’s rising prominence in wealth management.
In Malaysia, 2025 marks a pivotal year. The Madani Government has introduced the Family Office Incentive Scheme and established the Forest City Special Financial Zone (SFZ), signaling a strong commitment to positioning Malaysia as a competitive hub for family offices in Southeast Asia
Here are the reasons why we must know about the family office in Malaysia now:
1) Focus of the Malaysian Government
On September 20, 2024, the Malaysian government introduced a new Family Office Incentive Scheme under the Forest City Special Financial Zone, offering a 0% tax rate for up to 20 years to eligible Single Family Office Vehicles (SFOV1). Announced by Finance Minister II, Datuk Seri Amir Hamzah Azizan, the scheme aims to attract global investors and strengthen the ecosystem for family office in Malaysia, positioning the country as a rising wealth management hub in Asia
Key benefits include:
- Zero Percent Tax Rate: A 20-year tax exemption on income from eligible investments.
- Strategic Location: Offices must be established in the Forest City SFZ, benefiting from its infrastructure.
- Asset Management Requirements: A minimum of RM30 million in managed assets.
- Local Investment Incentives: At least 10% of AUM or RM10 million must be invested locally.
- Operational Expenditure Requirements: A minimum annual operational spending of RM500,000 in Malaysia.
For a detailed guide on the incentive scheme and eligibility criteria, visit the Securities Commission Malaysia’s announcement.
All these developments raise an important question: Is there enough talent to manage all this wealth, both present and incoming, and is the Malaysian market ready to handle it? For now, the answer is no.
However, if you are looking for an international family office, we have good news for you. One of Asia’s top family offices has just set up their office in Malaysia. You can find out more by making an appointment with their consultant now
2) Family Office Opportunity Cost
Eduardo Saverin, co-founder of Facebook, set up a family office after moving to Singapore—reportedly saving $288 million in taxes, according to the New York Post. His example shows how family offices can deliver not only tax advantages but also long-term wealth management and preservation benefits.
Kuok Meng Xiong, grandson of Robert Kuok, leads K3 Ventures, linked to his family office in Singapore, with investments in ByteDance and Grab. This highlights the role family offices play in tech innovation—something family office in Malaysia is only now beginning to support through its new regulatory framework The Tech-First Future of SE Asia’s Family Offices.
Another example is Joseph Tsai Co-Founder of Alibaba Group, Tsai’s family office purchased the Brooklyn Nets of the NBA for $3.5 billion in 2019. By 2024, the value of the investment has increased to $4.8-5.6 billion. This represents a $1.3-2.1 Billion increase in just five years, showcasing a successful example of strategic investment management by a family office if you are considering similar strategic financial management, you might find it beneficial to explore how to set up an offshore trust in Malaysia
3) Asia’s Wealth Landscape & Talent Gap
By 2027, there will be roughly 210,000 ultra-high-net-worth-individuals (at least US$30mil or RM141mil worth) in Asia, up by 39.8% from 2022.
| Name | Net Worth (2025) | Description | Country | Industry | Family Office Name | Major Investments | Philanthropic Activities | Year Established | Education | Awards/Recognitions |
|---|---|---|---|---|---|---|---|---|---|---|
| Sergey Brin | $143 billion | Co-Founder of Google | Singapore | Technology | Brin Family Office | Real estate, AI startups | Brin Wojcicki Foundation | 2005 | Stanford University | Marconi Prize, National Medal of Technology |
| Mukesh Ambani | $104 billion | Chairman of Reliance Industries | Singapore | Energy, Retail | Reliance Family Office | Oil, telecom, retail expansion | Reliance Foundation | 1981 | Institute of Chemical Technology | Business Leader of the Year |
| Liang Xinjun | $2.3 billion | Co-founder of Fosun Group | Singapore | Investment | Fosun Family Office | Healthcare, real estate | Fosun Foundation | 1992 | Fudan University | Top 10 Chinese Entrepreneurs |
| Ray Dalio | $15.4 billion | Founder of Bridgewater Associates | Singapore | Finance | Dalio Family Office | Hedge funds, global real estate | Dalio Foundation | 1975 | Harvard Business School | Philanthropist of the Year |
| Jack Ma | $27.2 billion | Founder of Alibaba Group | Hong Kong | Technology, E-commerce | Lakeside Partners | E-commerce, fintech, AI | Jack Ma Foundation | 1999 | Hangzhou Normal University | Asia’s Heroes of Philanthropy |
| Li Ka-shing | $31.0 billion | Hong Kong business magnate | Hong Kong | Conglomerate | Horizon Ventures | Biotech, real estate, tech | Li Ka Shing Foundation | 1950 | None | Grand Bauhinia Medal |
| Joseph Tsai | $12.1 billion | Co-Founder of Alibaba Group | Hong Kong | Technology, Investment | Blue Pool Capital | Sports franchises, private equity | Tsai Foundation | 2012 | Yale University | Business Person of the Year |
| James Dyson | $15.1 billion | Founder of Dyson | Singapore | Technology, Consumer Goods | Weybourne Group | Tech, robotics, property | James Dyson Foundation | 2013 | Royal College of Art | Order of Merit, Royal Designer for Industry |
Wealthy Individuals Who Set Up Family Offices in Asia
Wealthy Malaysians often park their wealth abroad due to the current talent gap in the country, which affects the growth of the family office in Malaysia industry. Family offices require a unique skill set, blending professional expertise with a personal touch, which is uncommon in other workplaces. KPMG’s report notes that within the family office business in Asia, CEOs earn between SG$158,001 and SG$500,000 (RM1.76 million) per year, excluding bonuses.
FIAM is committed to helping Malaysia fill this talent gap by providing training with the help of international family office experts. Sign up for our newsletter to stay informed about upcoming events related to family office in Malaysia, offshore trust, and inheritance
4) With a new RM10 million AUM threshold, Malaysia redefines the family office minimum net worth
Previously, setting up a family office in Singapore required a minimum of SGD 10 million (approximately RM35 million), while Hong Kong’s threshold was around HKD 240 million (approximately RM140 million). Now, with Malaysia lowering its requirement to just RM10 million, the country has become one of the most accessible jurisdictions in Asia for setting up a family office in Malaysia.
This significant reduction is expected to:
✅ Encourage more Malaysian entrepreneurs and wealthy families to professionalize wealth management
✅ Attract regional investors looking for a cost-effective base
✅ Boost demand for local financial, legal, and estate planning services
✅ Increase awareness around succession planning and wealth preservation
5) Malaysia’s First Family Office Is Live—And It’s Just the Beginning
In a landmark move, Tan Sri Chua Ma Yu—one of Malaysia’s most prominent investors—set up CMY Capital, one of the first family office in Malaysia to benefit from Malaysia’s new 0% tax incentive for Single Family Offices (SFOs) under the Forest City Special Financial Zone (SFZ). This isn’t just a personal milestone—it’s a signal that Malaysia is open for business in the global family office landscape.
This move brings credibility to Malaysia’s ambitions and proves the regulatory framework is no longer just on paper—it’s in action. More Malaysians should understand family offices now, not just because global interest is growing, but because Malaysia is already participating.
6) Tailored for New Wealth: Crypto, NFTs, and Digital Assets
Modern wealth isn’t just stocks and real estate. Family offices now manage crypto holdings, NFTs, tokenised assets, and digital art. Malaysia’s regulatory openness and flexibility give families a secure and structured way to handle these emerging assets
Understanding Family Offices
A family office is a private wealth management advisory firm that serves ultra-high-net-worth investors. Family offices are distinct from traditional wealth management shops in that they offer a total outsourced solution to managing the financial and investment side of an affluent individual or family.
History: The concept began with the Rockefeller family in the late 19th century, who pioneered this approach to consolidate management of the family’s sprawling empire under a single office.
Type of Family Offices
- Single Family Office (SFO): Manages the wealth and personal affairs of one family. It offers highly personalized services and confidentiality, with strategies tailored to the specific needs of that family.Currently, the Single Family Office (SFO) is the type of family office in Malaysia offered under the government’s incentive scheme
Multi-Family Office (MFO): Provides similar services but to multiple families. MFOs can offer cost-sharing benefits and access to a wider range of expertise and investment opportunities, making them suitable for families that may not have the resources to run a standalone office.
Both types of family offices provide customized financial care, but the choice between SFO and MFO depends on the family’s size, costs considerations, and desired exclusivity of services.Virtual Family Offices (VFOs): Leveraging digital platforms to manage wealth remotely, offering flexibility and reduced overhead.
Embedded Family Offices (EFOs): Integrated within family-owned businesses, aligning business operations with wealth management strategies.
Hybrid Models: Combining elements of SFOs and MFOs to tailor services to specific family needs .
Top Asia Family Office In World Top 100 Family office list
| World Rank | Family Office | Country/Region | Owner / Notable Figure |
|---|---|---|---|
| 19 | Hartono Family Office | Asia (Indonesia) | Hartono Family |
| 21 | Indorama Capital Holdings | Asia | Aloke Lohia |
| 26 | Yoovidhya Family Office (co-founders of Red Bull) | Asia (Thailand) | Yoovidhya Family |
| 33 | PremjiInvest | Asia (India) | Azim Premji |
| 37 | Sunrise Capital Management | Asia | Information not publicly disclosed |
| 62 | AT Capital Group | Asia (Singapore) | Arvind Tiku |
| 81 | Wah Hin and Company | Asia (Singapore) | Tan Family |
| 84 | Yamauchi No. 10 Family Office | Asia (Japan) | Yamauchi Family |
| 95 | Catamaran Ventures | Asia (India) | NR Narayana Murthy |
Family Office Structure in Malaysia
A family office in Malaysia is typically structured to deliver bespoke financial, legal, and lifestyle services to ultra-high-net-worth families. As the sector matures under the new Forest City Special Financial Zone (SFZ) incentive scheme, local structures are aligning with international standards—combining investment control, operational efficiency, and legacy planning.
Key Roles and Hierarchy:
Family Principal – The founder or head of the family, setting vision and strategic direction.
Chief Executive Officer (CEO) – Oversees daily operations and coordinates teams.
Chief Investment Officer (CIO) – Manages investment strategies and risk.
Chief Financial Officer (CFO) – Leads tax planning, financial controls, and compliance.
Legal Counsel – Handles trusts, regulatory issues, and estate planning.
Accountants and Analysts – Support investment tracking, budgeting, and financial reporting.
The structure can scale depending on the family’s needs—ranging from lean setups for emerging wealth to complex teams managing multi-generational assets.
Comparison of family office in Malaysia, Hong Kong, and Singapore
As of 2025, Malaysia has launched its first dedicated family office framework under the Forest City Special Financial Zone (SFZ), offering a 0% tax rate for eligible Single Family Office Vehicles (SFOV1). This marks a strong step forward in competing with Singapore and Hong Kong.
However, Malaysia still faces key challenges:
A new and untested regulatory framework
A shortage of skilled wealth management talent
A smaller, less liquid capital market
While promising, Malaysia’s family office ecosystem is still evolving. The following table compares its progress with established hubs in the region
| Feature | Singapore | Hong Kong | Malaysia |
|---|---|---|---|
| Legal Entities | Private Limited Company, Trust, Variable Capital Company (VCC) | Limited Liability Company, Trust | Private Limited Company (Sdn Bhd), Trust, Labuan Entities |
| Regulatory Environment | Monetary Authority of Singapore (MAS), ACRA | Securities and Futures Commission (SFC) | Securities Commission Malaysia (SC), SSM, Labuan FSA |
| Tax Incentives | Tax exemptions under Sections 13O and 13U | Proposed tax concessions for eligible profits | 0% tax for SFOs in Forest City SFZ (10 years, renewable) |
| Market Growth | Over 1,100 family offices as of 2024 | Targeting 200 family offices by 2025 | First SFOs launched in 2025; emerging ecosystem |
| Preferred Structures | Holding company with investment fund and family office | Family-owned investment vehicles, emphasis on SFOs | SFO and SFOV under new incentive scheme |
| Licensing Requirements | Exemptions for SFOs; others require licensing | Licences required for regulated activities | Registration required; SFOs enjoy exemptions |
| Investment Vehicles | VCC, trusts, private companies | Trusts, LLCs | Sdn Bhd, Labuan trusts, foundations, PCCs |
| Global Competitiveness | Leading hub with mature legal and tax frameworks | Competing with Singapore for top position | Rapidly improving with new incentives and structure |
Conclusion
The regulatory framework for family offices in Malaysia has already been announced, and the country now has its first operational Single Family Offices (SFOs). This marks a pivotal shift in Malaysia’s wealth management landscape. As the saying goes, the early bird catches the worm—and those who understand and act now will be best positioned to benefit. Whether you’re a high-net-worth individual exploring structured wealth solutions or a professional looking to build a career in this emerging sector, the future of family offices in Malaysia is already taking shape—and it’s full of opportunity
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