KUALA LUMPUR: The government estimates the range of assets under management (AUM) to be between RM500 million and RM1.2 billion within the first five years of implementing the family office scheme, targeting families from within the country, the region and abroad, such as from the Middle East.
Finance Minister II Datuk Seri Amir Hamzah Azizan said the local investment range is estimated at between RM40 million and RM110 million channelled into high-growth and high-value sectors.
"The scheme is also a catalyst for human capital development and will bring about economic multiplier effects.
"The scheme will stimulate new economic opportunities for the local professional services sector and bring about economic multiplier effects via conditions such as a minimum salary of RM10,000, a physical office, local expenses of at least RM500,000 and local investment of at least 10 per cent of AUM," he said in response to Tan Hong Pin (PH-Bakri) who asked Amir Hamzah the government's target as it seeks to attract family offices/wealthy individual management firms to operate in Malaysia at the Dewan Rakyat's question and answer session here, today.
He was also asked about the volume and investment value expected within the first five years, its main market source and the incentives that would be provided to raise the country's competitiveness.
According to Amir Hamzah, this situation encourages a global trend with the family office growth sector estimated to rise by 75 per cent by 2030.
"The Malaysian Securities Commission (SC) also estimates multiplier effects of between three and five times from domestic investment and expenditure within the first five years.
"They have to meet annual local investment requirements and expenditure to quality for the incentives under the scheme," he said.
Meanwhile, Tan also asked how the scheme can benefit local industries, especially small and medium-sized industries (SMEs).
Amir Hamzah said the single-family office scheme (SFO) which started in Forest City's Special Financial Zone (SFZ), Johor, has imposed a local investment requirement of at least 10 per cent of AUM.
Furthermore, he said investments into SMEs, encouraged under the SFO scheme, will catalyse alternative capital flow into SMEs.
"The government will leverage existing initiatives to align with alternative funding opportunities, especially in the capital market, where family offices will become one of the contributors to SME capital," he said.