Malaysia's Budget 2027, tabled on 9 October, says a multi-family office model will be introduced in Forest City, letting licensed fund managers serve several families alongside the existing single family office scheme.

TL;DR

  • The Budget 2027 speech announces a Multi-Family Office (MFO) model in Forest City, where licensed fund managers could serve several families, including through approved single family office funds.
  • The existing single family office scheme offers zero tax on qualifying income for up to 20 years.
  • No tax treatment, licensing conditions or start date for the MFO model have been published in the sources reviewed.

What did Malaysia announce for family offices in Budget 2027?

In the Budget 2027 speech delivered to the Dewan Rakyat on 9 October 2026 and published by Malaysia's Ministry of Finance, paragraph 146 covers the Johor-Singapore Special Economic Zone (JS-SEZ) and Forest City. It restates that the Forest City Single Family Office (SFO) scheme allows one family to manage its funds in Malaysia with zero tax on qualifying income for up to 20 years. It then says a Multi-Family Office (MFO) model will be introduced, under which licensed fund managers could serve several families, including through approved SFO funds.

The same paragraph says the JS-SEZ recorded RM132 billion in investment from 2025 to June 2026, and that the Prime Minister and Singapore's Prime Minister Lawrence Wong will launch the JS-SEZ Master Plan and Blueprint by the end of this year.

How does the existing single family office scheme work?

A single family office is a private vehicle that manages the wealth of one family. The Edge Malaysia reports that Malaysia's SFO scheme, launched in September 2024, requires at least RM30 million in assets under management, at least RM10 million or 10% of total assets in local or promoted investments, and at least RM500,000 in annual local spending including a physical office. The Edge presents these as additional requirements, so the list may be incomplete.

Uptake so far has been modest. Hubbis reported in April 2026 that six SFOs had been approved with combined assets of about RM400 million, against a target of RM2 billion by the end of 2026. Forest City sits about 2 km from Singapore, which Hubbis says hosted about 2,700 SFOs as of mid-2025.

Why add a multi-family office model?

A multi-family office serves several families through one platform, which can suit families below the asset level needed to run their own SFO. PwC Malaysia's Fung Mei Lin, quoted by Bernama on 11 October, welcomed the MFO model and said it could broaden the wealth management industry, attract families of different asset sizes and create demand for local fund managers, trustees, accountants and lawyers. She added that clear guidance is needed on licensing, tax treatment, substance requirements and how the MFO and SFO schemes interact.

What is not confirmed yet?

The speech and the reports reviewed give no tax rates, asset thresholds, licensing conditions or start date for the MFO model, and do not say whether it will mirror the SFO's zero-tax treatment. Families considering Forest City should wait for Securities Commission Malaysia guidance and take professional advice.

Why it matters for family offices comparing Asian hubs

Regional competition for family office capital is intensifying. Singapore is separately weighing whether digital payment tokens and insurance policies could join its designated investment list for family office tax exemptions, per Opalesque on 6 October, and our coverage of that is here: https://www.asiafamilyofficehub.com/singapore-weighs-family-office-tax-list-changes-including-digital-tokens-and-insurance/ . For the Singapore single family office rules, see: https://www.asiafamilyofficehub.com/singapores-revised-single-family-office-rules-what-changed-and-what-existing-sfos-must-do-by-june-2027/ . For Singapore wealth platform moves, see: https://www.asiafamilyofficehub.com/seviora-to-merge-azalea-seatown-and-seviora-capital-from-january-2027-what-asian-family-offices-should-note/ . This article is information only and is not tax, legal or investment advice.

Frequently Asked Questions

What is a multi-family office?

A multi-family office is a firm that provides wealth management and related services to several families. Under Malaysia's proposed model, licensed fund managers could serve multiple families, including through approved single family office funds, according to the Budget 2027 speech.

How long is the zero-tax period under Malaysia's single family office scheme?

The Budget 2027 speech says qualifying income under the Forest City SFO scheme is taxed at zero for up to 20 years.

When will Malaysia's multi-family office model start?

No start date has been published in the sources reviewed. The speech says the model will be introduced and gives no timeline, tax treatment or licensing details.

Sources and Method

This is an original summary based on: Ministry of Finance Malaysia, Speech The Fifth MADANI Budget 2027, paragraph 146 (9 October 2026); The Edge Malaysia, report on the multi-family office model for Forest City (9 October 2026); Bernama, Budget 2027 tax measures to benefit M40, boost investment, PwC Malaysia (11 October 2026); PwC Malaysia Budget 2027 overview; Hubbis, Malaysia positions Forest City SFZ as complementary base for family offices (17 April 2026); Opalesque (6 October 2026) for Singapore context. Opinions are attributed to PwC Malaysia. Not confirmed: MFO tax treatment, thresholds, licensing conditions and start date.