The Forest City Financial District in Johor, Malaysia, has recently become a global focus in the financial sector. The district announced that it will provide unprecedented 10-year zero corporate tax benefits for family offices (referred to as "family offices") that settle in. This policy is expected to be officially implemented in the first quarter of next year. This is the first time in Malaysia that a special financial zone has received such strong tax incentives, marking Johor's ambition and determination to attract high-end financial services.

Malaysia's Second Finance Minister Amir Hansha stated at the special tax measures promotion event in Forest City Financial District that this preferential policy is specifically designed to attract family offices from the region and around the world to settle in. He emphasized that Forest City not only has well-developed infrastructure, but also becomes an ideal location for family office investment due to its proximity to Singapore. Amir Hansha further pointed out that the goal of Forest City is to become an international financial center like Shenzhen in China or Dubai International Financial Center in the United Arab Emirates, and attracting family offices is an important step towards achieving this goal.

In order to enjoy this tax benefit, family offices need to meet a series of specific conditions, including asset size exceeding RM30 million (approximately SGD 9.25 million), investment in Malaysia, and hiring local employees. In addition, if the family office wishes to continue enjoying the benefits after 10 years, it needs to meet new requirements, such as expanding capital investment and personnel scale, to ensure its sustained contribution to the local economy.

The rapid growth of the global family office market also provides strong support for this initiative in Johor Forest City. It is expected that by 2030, the number of global family offices will increase by 75% compared to the current level, and the total managed global assets will reach an astonishing $7 trillion (approximately SGD 9 trillion). The tax incentives introduced by Johor state will undoubtedly provide an attractive option for family offices seeking lower costs and better environments.

However, as one of the preferred locations for family offices, Singapore's strong competitiveness cannot be ignored. Singapore not only provides tax incentives, but also has multiple advantages such as economic and political stability, financial security, and convenient entry and exit. Nevertheless, Johor Forest City, with its unique geographical location and policy support, is expected to attract a group of family offices seeking alternative solutions.

In addition to family offices, Johor Forest City Financial Special Zone also plans to provide zero to 5% corporate tax incentives for other areas such as financial services, financial technology, and foreign payment systems. Meanwhile, knowledge-based employees and Malaysian citizens working in the special zone will also enjoy a 15% personal income tax discount. These measures aim to comprehensively attract enterprises, financial institutions, and high net worth individuals, further consolidating the position of Forest City as an investment hotspot.