Malaysia Offers Tax Breaks for Forest City Investors

Malaysia has introduced a 0% tax rate for family offices as part of a broader incentive package aimed at revitalizing the $100 billion Forest City development in Johor. Second Finance Minister Amir Hamzah Azizan announced additional incentives including a concessionary corporate tax rate ranging from 0% to 5% and a 15% individual income tax rate for knowledge workers and Malaysians. These incentives are designed to attract businesses, financial institutions, and high-net-worth individuals to the area, enhancing Forest City's appeal as an investment destination. The initiative, which will be operational by the first quarter of 2025, is also part of efforts to establish Forest City as a special financial zone. The project, developed by Country Garden Holdings, has faced numerous challenges since its inception in 2016 but aims to leverage favorable tax conditions to attract regional and local families for wealth management. The establishment of family offices is projected to significantly increase the total assets under management globally by 2030.