‍Reflections from the Baker Tilly Tax & Budget Seminar 2025

As Southeast Asia's wealth management landscape undergoes its most significant transformation in a generation, one question is capturing the attention of family offices across the region: Can Malaysia position itself as Asia's next premier wealth management hub?

This question took centre stage at the Baker Tilly Tax & Budget Seminar, held at The Vertical, Bangsar South on 24th October 2025. The event brought together Malaysia's leading financial, tax, and legal professionals to examine the 2026 Malaysian Budget, evolving regulatory frameworks, and the unprecedented opportunities emerging from the Johor–Singapore Special Economic Zone (SEZ).

The panel discussion "Investing in the Johor–Singapore Special Economic Zone – Examining the Potential for Companies, FDI, and High Net Worth Individuals and Families" featured insights from:

• Rob Atherton, Head of International Wealth, Melbourne Capital Group

• Sharmini Ganeshan, Partner, Bock & Partners

• Melvin Mui, Chief Executive Officer, Hong Kong Trust Capital Management Limited

Moderated by Marcus Tan, Executive Director, Baker Tilly Malaysia, the session explored how Malaysia's strategic positioning between established financial centres creates unique advantages for sophisticated wealth planning.

The Strategic Advantage: Why Malaysia, Why Now

The convergence of three factors is creating what may be a once-in-a-generation opportunity for wealth management in Malaysia:

Regulatory Maturation: Malaysia's Securities Commission has been steadily refining its framework for family offices and fund management, bringing greater clarity and international credibility to wealth structures domiciled here.

Geographic Positioning: The Johor–Singapore SEZ and the emerging Forest City Special Financial Zone create a seamless cross-border ecosystem. Families can now access Singapore's financial infrastructure while benefiting from Malaysia's cost advantages and growing professional expertise.

Tax Alignment: Recent developments in cross-border tax cooperation between Malaysia and Singapore have removed many historical uncertainties, making multi-jurisdictional planning more predictable and secure.

"The opportunity lies not only in attracting corporate investment, but also in positioning Malaysia as a trusted base for family offices managing multi-jurisdictional wealth. With the right governance, structure, and professional oversight, Malaysia can compete on the same stage as established global centres."

— Rob Atherton

Beyond Corporate Investment: The Family Office Opportunity

While much attention focuses on foreign direct investment and corporate tax incentives within the SEZ, the panel explored a parallel opportunity that receives less public attention: Malaysia's potential to become a regional hub for family offices and private wealth management.

Three key advantages emerged from the discussion:

Cost Efficiency Without Compromising Quality: Establishing and operating a family office in Malaysia offers significant cost advantages compared to Singapore or Hong Kong, while maintaining access to the same level of professional expertise in law, tax, and investment management.

Substance and Connectivity: Unlike pure offshore jurisdictions, Malaysia offers genuine economic substance; real offices, local professionals, and meaningful business activities, while maintaining excellent connectivity to regional and global financial centres.

Flexibility in Structuring: Malaysia's dual system, encompassing both onshore Malaysian entities and Labuan International Business and Financial Centre structures, provides flexibility in designing wealth solutions that meet diverse family needs and jurisdictional requirements.

Trusts, Foundations, and the Architecture of Intergenerational Wealth

One of the most substantive parts of the discussion centred on the technical structures available for wealth preservation and succession planning. Understanding the distinction between Malaysian trusts, Labuan-based trusts and foundations, and their respective applications is critical for families seeking long-term solutions.

Rob emphasised that successful wealth management depends on three key principles; governance, control, and continuity, ensuring that wealth is preserved and managed responsibly for future generations.

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The Three Pillars of Sustainable Wealth Management

Throughout the discussion, three principles emerged as non-negotiable for successful intergenerational planning:

Governance: Clear decision-making frameworks, defined roles for family members, professional advisors, and trustees, and documented processes for managing conflicts and major decisions.

Control: Appropriate balance between founder control during their lifetime and professional oversight to ensure continuity. Many families struggle with this balance, holding too tightly in early years and creating succession vacuums later.

Continuity: Structures that survive generational transitions, accommodate changing family circumstances, and remain compliant as regulatory frameworks evolve across multiple jurisdictions.

Consider a typical scenario: A successful entrepreneur builds significant wealth across ASEAN markets. Without proper structuring, their estate faces fragmented administration across multiple legal systems, potential disputes among heirs, and uncertain tax treatment. A well-designed trust or foundation, established while the founder is active and capable, provides clarity, protection, and continuity that benefits multiple generations.

At Melbourne Capital Group, these principles guide our approach to every client engagement. Working closely with legal and tax specialists like those represented on the panel, we help families design structures that are not only tax-efficient but resilient enough to serve grandchildren not yet born, while being compliant within Malaysia’s Securities Commission framework.

A Shared Vision for Growth

A recurring theme throughout the seminar was the critical importance of professional collaboration. Effective wealth management for high net worth families requires seamless coordination between:

• Wealth advisors who understand family dynamics and long-term objectives

• Tax specialists who can navigate multi-jurisdictional compliance requirements

• Legal professionals skilled in trust law, corporate structuring, and succession planning

• Regulatory experts who ensure structures remain compliant as frameworks evolve

Malaysia's professional services sector has matured significantly in recent years, with firms like Baker Tilly, Bock & Partners, and Melbourne Capital Group demonstrating that sophisticated international advice is readily available within Malaysia itself. Families no longer need to look exclusively to Singapore or Hong Kong for expertise.

For those of us working at the intersection of wealth management, regulatory compliance, and family advisory services, this moment represents both responsibility and opportunity.

The responsibility is to maintain the highest professional standards, to build structures that genuinely serve client interests rather than simply pursuing tax efficiency, and to contribute to Malaysia's credibility as a serious financial centre.

The opportunity is to participate in building something significant; a regional hub where families can access world-class advice, where wealth structures are respected internationally, and where the next generation of Asian wealth finds a trusted home.

At Melbourne Capital Group, we're committed to both. Through rigorous analysis, collaborative partnerships, and unwavering focus on client outcomes, we're working to ensure that Malaysia's potential in international wealth management becomes its reality.

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