Fri Sep 20 06:45:00 UTC 2024: ## Forest City Special Financial Zone to Attract Investors with Zero Tax Rate for Family Offices

**Johor, Malaysia** – The Forest City Special Financial Zone (FCSFZ) is set to become a magnet for international capital following the announcement of a series of incentives, including a 0% tax rate for family offices. The initiative, launched by Johor Regent Tunku Ismail Sultan Ibrahim, aims to stimulate financial growth not only in Johor but also across Malaysia.

Finance Minister II Datuk Seri Amir Hamzah Azizan revealed that the FCSFZ will offer a “competitive” package of incentives, including concessionary corporate tax rates between 0% and 5%, and a special individual income tax rate of 15% for knowledge workers. These incentives are expected to attract businesses, financial institutions, and high-net-worth individuals, bolstering Forest City’s position as a preferred investment destination.

The single-family office scheme, coordinated by the Securities Commission Malaysia, aims to attract regional and Malaysian families to manage their family wealth from Malaysia. With its robust infrastructure, competitive talent pool, strong legal framework, and effective governance, Malaysia offers a compelling environment for family offices. The scheme is anticipated to be operational by the first quarter of 2025.

Johor Mentri Besar Datuk Onn Hafiz Ghazi expressed gratitude to the federal government for the incentives, noting that they are a “very attractive package” and will act as a catalyst for financial economic development. The state government will be offering support to ensure the successful implementation of the FCSFZ initiatives.

The establishment of family offices is expected to significantly broaden the investor base, channeling private capital into high-growth and high-value sectors. This initiative complements the government’s GEAR-uP program, which leverages government-linked investment companies (GLICs) to drive economic growth through domestic investments.

The FCSFZ is poised to become a point of pride for both Johor and Malaysia, attracting significant investment and contributing to the nation’s economic prosperity.

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