Family Office SG
How does a single-office SFO structure operate?
1. Your Singapore SFO Global Operations Base: Your existing family office continues to manage global investments, oversee strategy, and coordinate professional advisors—exactly as it is currently operating.
2. Johor Bahru SFO: A Highly Efficient Tax Holding Tool. A newly established single-family office in the Johor Bahru Special Economic Zone, positioned at the top of all Malaysian investments. Under the framework of the Securities Commission of Malaysia, eligible investment income from this structure is taxed at 0%.
3. SPV (1, 2, 3…) Project-level risk isolation: Each investment or project in Malaysia has its own special purpose vehicle (SPV). This isolates risk, enables independent financing, and allows for partial exit.
The winning formula of this architecture
Your Singapore SFO remains unchanged : the same team, the same consultants, and the same operating pace.
Achieve superior tax and expense optimization for your Malaysian investment: 0% tax on income, capital gains, and transfers.
Your risks are controlled: each project is isolated from the others, protecting your core assets.
Your exit options have expanded: institutional buyers, REITs, or partial sales, all of which are tax-efficient.
Minimum requirements for establishing a Special Economic Zone (SFO) in Forest City.
To establish a single-family office in Forest City Johor Bahru, a family must meet key thresholds regarding assets under management (AUM), local investments, and operational infrastructure.
Architecture requirements: The SFO must consist of two (2) entities:
1. Single Family Office Investment Vehicle (SFOV): Holds the family's investments. It owns all Malaysian assets, and all income and capital gains are accumulated at this level to enjoy a 0% tax rate.
2. Single Family Office (SFO) Management Firm: Responsible for administration and investment oversight. It must have a physical office in Forest City's Special Financial District and employ local staff.
AUM and Investment Requirements:
Minimum AUM: RM30 million (approximately S$9 million) for the first 10 years, increasing to RM50 million in the subsequent 10-year renewal period.
Local Investment: 10% of AUM or RM10 million (whichever is lower) shall be invested in eligible Malaysian assets in Johor Bahru. (Note: Investments in JS-SEZ approved companies are eligible for a 1.5x multiplier).
Annual operating expenses (OPEX):
First 10 years: Minimum annual OPEX (SFOV) - RM500,000.
The next 10 years: Minimum annual OPEX (SFOV) - RM650,000.
