Forest City Draws SFOs with 0% Tax Incentive, Signaling New Momentum in Johorโs JS-SEZ
Malaysiaโs ambition to revive Forest City as a premier financial and investment hub has received a major boost with the launch of a 0% tax incentive for Single Family Offices (SFOs) โ with high-net-worth individuals already moving in.
Among the first to qualify are billionaire investor Tan Sri Chua Ma Yuโs CMY Capital and Yow Kee Family Office, owned by David Chong Kok Kong, founder of regional trust giant Portcullis.
These approvals signal rising momentum for the Johor-Singapore Special Economic Zone (JS-SEZ) and mark a turning point in Forest City’s transformation from stalled real estate mega-project to financial services hotspot.
CMY Capital Leads the Charge into Forest City SFO Scheme
CMY Capital, formerly known as Waterfront Capital, is one of Malaysiaโs most prominent family investment offices. Although headquartered in Kuala Lumpur, its newly formed Pulau 1-incorporated SFO has received conditional approval from the Securities Commission (SC) to access the 0% tax incentive.
Key facts:
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Owned by Tan Sri Chua Ma Yu and sons Datuk Chua Sai Men and Chua Ray-Men
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Known for co-owning The St Regis Kuala Lumpur
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Holds equity in listed and private firms including ITMAX System Bhd (2.23%)
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Recently reported RM2.28 million loss on RM112.6 million in revenue (FY2024)
The new SFO is part of CMYโs diversification into tax-efficient asset management and intergenerational wealth structuring, in line with global trends among ultra-wealthy families.
Yow Kee Family Office: A Global Trust Player Enters Johor
Also receiving SCโs nod is Yow Kee Family Office Sdn Bhd, fully owned by David Chong Kok Kong, founder of Portcullis, a 40-year-old trust and fiduciary business headquartered in Singapore.
Yow Kee was incorporated in December 2024, and operates from Menara Delima Satu in Forest City, fulfilling the SCโs jurisdictional requirements.
Portcullis operates in:
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Singapore and Hong Kong
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Cayman Islands and Seychelles (via licences)
This marks the first significant move by a Singapore-based trust group into Malaysiaโs newly incentivized SFO ecosystem.
Why Forest City? Incentive Structure Explained
Malaysiaโs 10-year tax exemption for SFOs is exclusive to Pulau 1, Forest City, and comes with strict eligibility criteria:
โ Key Requirements:
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Minimum RM30 million in assets under management (AUM)
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At least 10% or RM10 million (whichever is lower) must be invested in approved local assets
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Must be a newly incorporated investment holding company
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Registered office must be in Forest City (Pulau 1)
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Must pre-register with the SC
The scheme allows for a 10-year extension subject to meeting additional thresholds โ making it one of Southeast Asiaโs most attractive family office frameworks.
โThis is a catalytic policy shift โ designed to revive Forest City by integrating it into the global wealth management network,โ said Johor exco member Lee Ting Han.
Forest Cityโs Rebirth as a Wealth Management Hub
Launched in 2014 with a bold US$100 billion vision, Forest City had stalled after only one island (Pulau 1) was reclaimed. Just 28,000 housing units were completed, despite RM20 billion in investment.
Now, the strategic alignment with the JS-SEZ, cross-border investment incentives, and a growing demand for APAC-based family office jurisdictions could put Forest City back on the map.
Administered by Country Garden Pacificview Sdn Bhd, a JV between Country Garden Holdings and Esplanade Danga 88, Forest City is now pivoting toward:
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Financial services and tax-efficient structures
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Residency-based high-net-worth family clusters
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Cross-border wealth flow between Singapore, China, and the Middle East
Implications for Real Estate and Investment Markets
With 17 more applicants reportedly exploring SFO setups in Forest City, the policy is expected to generate:
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Demand for luxury residences and office suites
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Development of legal, accounting, and family advisory ecosystems
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Spillover into Iskandar Puteri and Johor Bahru property markets
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Enhanced regional investor confidence in Johor’s financial infrastructure
For developers, brokers, and investment advisors, Forest Cityโs SFO model could transform the area into a low-tax financial enclave, similar to Hong Kongโs or Dubaiโs private wealth districts.
Final Thoughts: Forest Cityโs SFO Incentive Attracts Billionaire Backing
The launch of the Forest City 0% tax incentive SFO scheme has officially begun to bear fruit โ with early adopters like CMY Capital and Yow Kee Family Office showing strong vote of confidence.
Backed by progressive regulatory reforms, state-level support, and its role in the Johor-Singapore SEZ, Forest City could soon emerge as Southeast Asiaโs next wealth management hub โ with real estate, family offices, and capital markets at the centre of its revival.
