Rehda Institute’s CEO Series 2025: Malaysia well positioned to become preferred choice for high-yield family offices

• Malaysia offers a more competitive environment compared to Singapore while still providing easy access to Singapore's financial and professional resources.

PETALING JAYA (Jan 24): The Malaysian government's initiative to establish family offices is positioning Malaysia advantageously, said an expert in the CEO Series 2025  Economy & Business Forum.

Organised by Rehda Institute, the training and research arm of the Real Estate and Housing Developers' Association (Rehda) Malaysia, the annual event was held last week at Le Meridien Hotel here.

“The planned initiatives, such as QR codes, efficient transfer systems, and streamlined immigration processes, further enhance this advantage,” said EY Malaysia Asean tax leader and partner Amarjeet Singh during a panel discussion.

He stated that Singapore has been the top choice for family office investors, but. Singapore's limited capacity and resources have led to increasingly selective investment criteria, as investors prioritise maximising returns.

On the other hand, Malaysia offers a more competitive environment compared to Singapore while still providing easy access to Singapore's financial and professional resources.

“Malaysia can essentially leverage its own strengths while benefiting from the proximity with Singapore," Amarjeet explained.

Meanwhile, commercial real estate services provider Colliers (Hong Kong) managing director CK Lau believes that Malaysia is still categorised as an emerging market sector. Moving forward, Malaysia needs to demonstrate its capability to generate strong rental income and capital growth to shift investor perception from that which largely views Malaysia as a lower-yield market currently.

“Currently, China and Hong Kong exert more influence through trade and commerce. Under the Belt and Road Initiative, the Chinese central government aims to encourage state-owned enterprises to invest in this region. This would undoubtedly be beneficial to Malaysia,” he pointed out.

Focus on high-value activities and skilled professionals in JS-SEZ

In a keynote address, deputy finance minister Lim Hui Ying also highlighted the government’s efforts in attracting high-yield investments, especially through the Johor-Singapore Special Economic Zone (JS-SEZ) project.

According to Lim, key JS-SEZ incentives include a special 5% tax rate for 15 years on qualifying manufacturing and services activities, including AI, quantum computing, medical devices, and aerospace. Eligible knowledge workers will enjoy a 15% income tax rate for 10 years.

"The JS-SEZ incentive package aims to attract high-value investments, create higher-income jobs, and solidify Johor's position as a regional economic hub. The competitive tax rates make it an attractive destination for professionals in advanced sectors," she emphasised.

(Read also: Malaysia announces tax incentives for Johor-Singapore Special Economic Zone)

Lim added that Budget 2025 has been well received and includes several key initiatives to attract investments. Among them is the New Investment Incentive Framework (NIIF), which includes RM1 billion in incentives to attract foreign investments in high-value activities, expected to be launched in 3Q2025. The Investment Incentive Framework (IIF2025) is aimed at modern services in AI, robotics, IoT, data science and fintech.

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