ISKANDAR PUTERI: The recently-announced incentives for Forest City's Special Financial Zone (SFZ) are set to attract international investments, positioning it as a prime location for family offices.
The initiative targets wealthy families looking to manage their investments through single-family offices.
Deloitte Private Malaysia leader Chee Pei Pei said zero per cent tax rate for family wealth offices in the first quarter (Q1) next year, will position Forest City as a favourable jurisdiction for high-net-worth individuals seeking to manage their assets effectively.
While other factors such as political stability, skilled talent, regulatory clarity and high living standards will make Forest City a strong contender in Asia's financial landscape.
A family office is a privately held firm managing investments and wealth for a single family.
Forest City is the first in Malaysia to offer a zero per cent tax rate for single-family offices.
Beyond tax benefits, Forest City aims to become a hub for financial technology (fintech), global financial services, and foreign payment systems, offering a five per cent tax rate for these sectors.
Skilled professionals are further incentivised with a reduced 15 per cent income tax rate, encouraging talent retention in the region.
"The zone's duty-free status adds to its appeal as a catalyst for economic growth in southern Malaysia," Chee said at the recent single family office tax incentive seminar in Forest City.
The tax-friendly environment is attractive to investors and Malaysians working abroad, offering access to good healthcare, education and a balanced lifestyle, she added.
"Family offices in Asia are increasingly becoming significant players in wealth management.
"Forest City offers a lower entry point compared to neighbouring Singapore, allowing wealthy families to establish their offices at a competitive cost.
"Malaysia's niche market complements Singapore's well-established family office sector, positioning Forest City as an alternative for investors," she said.
She praised the government's move under the Madani Economic Framework to transform Forest City into a global financial hub.
Meanwhile, Country Garden Malaysia general manager Fang Fang said Forest City's ready infrastructure, including three major business districts, is already primed to meet the needs of investors.
"Forest City Financial Centre Phase 1 is the top choice for family offices, offering flexible office spaces and serviced apartments," Fang said.
She added that the strong interest in commercial units, with 80 per cent of the units were sold within an hour during the August sale.
The next sale, scheduled for this weekend, will feature a variety of units catering to diverse business needs, further boosting Forest City's appeal with its special incentives and duty-free status.