SC Targets RM2 Bln In Single Family Office AUM By 2026

KUALA LUMPUR, Oct 6 (Bernama) – The Securities Commission Malaysia (SC) is targeting RM2 billion in assets under management (AUM) by the end of 2026 under the Single Family Office (SFO) Incentive Scheme, after receiving 30 Expressions of Interest since the scheme was launched in September 2024.

SC chairman Datuk Mohammad Faiz Azmi also noted that six conditional approvals have already been issued, with an indicative AUM of close to RM400 million. 

“The pipeline includes Malaysian families repatriating wealth back home, as well as foreign families establishing a regional base,” he said in his opening remarks at the SFO Incentive Scheme Media Briefing here today.

Mohammad Faiz said this follows the Ministry of Finance’s formal gazettement of the Income Tax (Single Family Office Incentive Scheme) (Pulau 1 of Forest City Special Financial Zone) Rules 2025 on Oct 3, which marked a major milestone for the scheme.

“We would also like to affirm that Malaysia is now open for long-term and purpose-driven investments that contribute to national progress,” he added.

He said the formal gazettment of three key tax orders -- covering capital gains tax exemption, stamp duty relief, and the zero per cent tax rate for eligible income -- was the culmination of extensive preparation.

“SFOs are required to have a minimum of RM30 million in AUM, which increases to RM50 million after the first 10 years. These assets will be centrally managed from Malaysia, ensuring that investment decisions, oversight and governance functions are anchored domestically.

“Out of that, the SFOs are required to invest RM10 million or 10 per cent of AUM, whichever is lower (for the first 10 years) and higher (next 10 years) in eligible and promoted investments,” he added.

He said each SFO also has substantial domestic economic substance requirements -- including a minimum RM500,000 in annual operating expenditure during the initial period, rising to RM650,000 thereafter; the hiring of investment professionals; and the setting up of an office space within the designated financial zone.

“These will have spillover effects for legal, banking, property, education and other support services.

“We are confident that the scheme’s 20-year duration and the two-step certification process will provide the proper oversight, stability and predictability that multi-generational wealth requires,” he said.

Looking ahead, Mohammad Faiz said the SC expects to see continuous expansion of both domestic and international interest, particularly from the Asian region and the Middle East.

-- BERNAMA