Maybank and CMY Capital Launch Pioneering Single Family Office in FCSFZ
In a strategic move to enhance wealth management capabilities, Malayan Banking Bhd (Maybank) and tycoon Tan Sri Chua Ma Yu are set to establish Malaysia’s first single family office under the Forest City Special Financial Zone (FCSFZ). This landmark initiative is expected to position the Johor-Singapore Special Economic Zone (JS-SEZ) as a premier destination for regional wealth solutions.
The collaboration involves ONE KL Management Sdn Bhd (ONE KL), the family office of CMY Capital, founded by Chua, who is also the co-founder of RHB Bank. This development marks a significant step in promoting wealth management and investment opportunities within Malaysia, particularly in Forest City.
Why Choose the Forest City Special Financial Zone (FCSFZ)?
The FCSFZ is strategically located within the Johor-Singapore SEZ, designed to attract wealth management services and investment initiatives. As Maybank’s Group CEO for Community Financial Services, Syed Ahmad Taufik Albar highlighted, the JS-SEZ and FCSFZ are poised to become cost-effective, well-regulated, and strategically positioned hubs for wealth solutions.
Key Features of FCSFZ:
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Zero Tax Incentive: Family offices established in FCSFZ enjoy a zero tax rate on investment returns.
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Strategic Location: Proximity to Singapore, enhancing cross-border business opportunities.
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Comprehensive Banking Support: Maybank’s JS-SEZ Desk offers end-to-end banking services and facilitates connections with relevant authorities.
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Emerging Wealth Hub: The zone is part of the JS-SEZ, attracting ultra-high-net-worth individuals (UHNWIs) and family offices.
Maybank’s Strategic Role in FCSFZ
As the leading financial partner in the JS-SEZ, Maybank has committed to supporting businesses and individuals looking to leverage the region’s strategic advantages. The establishment of the JS-SEZ Desk reflects Maybank’s proactive approach in offering tailored banking solutions, advisory services, and seamless cross-border transactions.
Dedicated Banking Support Includes:
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Investment Banking: Tailored financial products for wealth management.
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Business Advisory: Insights on regional regulations and tax incentives.
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Financial Planning: Portfolio management for affluent clients.
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Connectivity: Linking clients to relevant authorities and business networks.
Growing Popularity of Family Offices in Malaysia
The concept of single family offices (SFOs) is gaining traction in Malaysia and Singapore due to the increasing wealth of the region’s ultra-rich population. According to McKinsey & Company, the wealth pool of affluent and mass-affluent individuals in Asia is projected to reach USD 4.7 trillion by 2026, up from USD 2.7 trillion in 2021.
Why Are Family Offices Thriving?
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Wealth Preservation: Managing multi-generational wealth with customized strategies.
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Investment Diversification: Exploring global opportunities while minimizing tax exposure.
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Risk Management: Safeguarding assets against economic volatility.
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Philanthropy: Structuring charitable activities efficiently.
Incentive Scheme:
The Securities Commission Malaysia recently approved the establishment of family offices, granting zero tax rates on investment returns. This tax incentive, introduced in September 2024, applies exclusively to family offices established within the FCSFZ.
CMY Capital: Leading the Way
CMY Capital, headed by Tan Sri Chua Ma Yu, is at the forefront of this pioneering effort. Known for co-founding RHB Bank, Chua’s involvement highlights the project’s credibility and vision. Partnering with Maybank, CMY Capital is setting the benchmark for wealth management practices in the JS-SEZ.
Strategic Collaboration:
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First-Mover Advantage: As the inaugural single family office, CMY Capital sets a precedent for future establishments.
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Maybank’s Support: Leveraging Maybank’s regional network for investment management and client connectivity.
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Wealth Hub Potential: Attracting other UHNWIs and high-value investors to Forest City.
The Rise of Ultra-High-Net-Worth Individuals (UHNWIs)
As Asia’s wealth landscape evolves, Malaysia is emerging as a favorable location for family offices, thanks to strategic policies and cross-border financial collaboration. Besides CMY Capital, Yow Kee Family Office, owned by David Chong, has also received the green light to operate under the new tax scheme.
Why Johor?
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Proximity to Singapore: Ideal for cross-border wealth management.
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Business-Friendly Environment: Tailored regulations to accommodate wealthy individuals.
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Economic Growth: Integration within the JS-SEZ spurs property and investment opportunities.
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Infrastructure and Connectivity: Supported by RTS Link and SFZ initiatives.
Implications for the Property Market
The establishment of family offices in Forest City is expected to boost real estate demand in the area. High-value residential properties, luxury condominiums, and commercial spaces are likely to see an uptick in interest, driven by both local and international investors.
Key Takeaways for Property Investors:
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Luxury Residences: Increased demand from UHNWIs and family offices.
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Commercial Real Estate: Offices and co-working spaces tailored for wealth management activities.
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Mixed-Use Developments: Combining residential, commercial, and leisure components to cater to affluent clients.
Conclusion: A New Era for Wealth Management in Johor
The collaboration between Maybank and CMY Capital to establish the first single family office in the FCSFZ marks a significant milestone for Malaysia’s wealth management landscape. As the JS-SEZ and FCSFZ continue to develop, more affluent individuals and family offices are expected to capitalize on the zero tax incentive and strategic location.
With its dedicated JS-SEZ Desk, Maybank aims to solidify its position as a trusted partner for wealth management and investment solutions. As Forest City evolves into a financial and trade hub, the property market in Johor is set for substantial growth, driven by high-net-worth investors seeking a stable and well-regulated environment.
Stay tuned for more updates on the evolving property landscape and investment opportunities in Johor and the Forest City Special Financial Zone.
