malaysiang
KUALA LUMPUR, Investors are keenly awaiting Budget 2025, scheduled for Oct 18, for announcements on the regulatory framework for establishing family offices in Malaysia, said OCBC Global Markets Research.
The firm added that domestic, regional, and international investors are also anticipating potential incentives to boost investments in Johor, ahead of year-end announcements on the Johor-Singapore Special Economic Zone (JS-SEZ).
‘The government announced additional incentives to attract investments into the Special Financial Zone (SFZ), and the schemes are expected to become operational in the first quarter of 2025,’ OCBC said in a research note.
Finance Minister II, Datuk Seri Amir Hamzah Azizan, in a Sept 20 announcement, offered family wealth offices a zero per cent tax for ten years, with the possibility of extension if certain conditions are met.
Other incentives include concessionary corporate tax rates of zero to five per cent, lower individual tax rates for skilled foreign workers, special deduc
tions on relocation costs, and withholding tax exemptions.
‘The incentives are highly competitive and will help distinguish the SFZ with its lower tax rates. These newly announced corporate rates would be the lowest among regional peers.
‘In addition, the push to attract family offices reflects rising investments in neighbouring ASEAN countries, particularly Singapore,’ OCBC added.
OCBC further noted that while these tax incentives could attract domestic, regional, and international investors, they must be supported by a robust regulatory framework and business incentives to encourage financial services and financial technology companies to establish operations within the SFZ.
Source: BERNAMA News Agency
