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HONG KONG is reinforcing its status as a leading destination for Malaysian high-net-worth families and asset owners seeking to establish family offices, underpinned by pro-business policies, a mature wealth management ecosystem and deep international capital markets.
As wealth preservation and succession planning grow more complex across South-East Asia, the concept of the family office is gaining traction among affluent families and family-owned enterprises. Beyond managing financial assets, such structures increasingly encompass legacy planning, preservation of family values, succession strategies and the education and development of future generations.
Invest Hong Kong Global Head of Family Office Jason Fong said the need to formalise family office structures has become more pressing among ultra-high net worth individuals seeking greater privacy and a more structured, personalised approach to wealth management.
“Among the main advantages of a family office is its ability to provide wealth management services that are fully tailored to each family’s priorities and objectives.
“This approach enables long-term wealth preservation through prudent investment strategies and robust risk management,” he said during a recent visit to Kuala Lumpur alongside Bank of China Hong Kong Private Banking.
According to Fong, family offices also function as a one-stop centre offering legacy planning, tax optimisation, philanthropy management, family education and lifestyle coordination, allowing families to manage both financial and non-financial matters in a systematic and professional manner.
He noted that Hong Kong continues to attract strong interest from Malaysian families and entrepreneurs who value legal certainty and its unique position as the only common law jurisdiction within China.
The city’s simple, low-rate territorial tax regime, with no mandatory domestic allocation requirements, offers flexibility for families to invest and deploy capital globally.
In March 2023, the Hong Kong government introduced a policy statement outlining eight key measures to strengthen the family office sector. Among the most significant initiatives is a new tax ordinance granting profits tax exemption for qualifying transactions conducted by family-owned investment holding vehicles managed by single family offices.
The incentive applies to structures with a minimum asset threshold of HK$240 million and specified activity requirements. No prior approval is required, and tax exemption is granted automatically once the criteria are met.
“During our event in Kuala Lumpur with BOC Hong Kong Private Banking, many local high-net-worth individuals expressed that Hong Kong’s world-class financial infrastructure, strong policy support and its strategic proximity to ASEAN and Mainland China make it a natural extension of Malaysia’s wealth network,” Fong said.
For Malaysian families planning global asset allocation, currency stability and foreign exchange risk management are critical components of long-term wealth preservation.
Hong Kong’s Linked Exchange Rate System, which maintains the Hong Kong dollar within a stable band against the US dollar, is supported by foreign currency reserves exceeding US$430 billion, more than five times the monetary base in circulation.
This underpins full currency convertibility and free capital flows.
Combined with a transparent regulatory framework and strong legal protections, the city offers what Fong described as a secure, stable and predictable environment for international wealth planning and cross-border investment.
Hong Kong’s deep and dynamic capital markets also provide strategic opportunities for family businesses seeking expansion, diversification and capital realisation.
As a global financial hub, the city offers access to a broad range of investment instruments, including equities, green bonds and emerging sectors such as financial technology and regulated digital assets.
With US$37 billion raised through initial public offerings in 2025, ranking first globally, and more than 300 IPO applications in the pipeline, investor confidence in the market remains robust.
For family enterprises, listing on the Hong Kong Stock Exchange offers not only growth capital but also a platform to enhance brand profile and unlock long-term value.
Despite global economic uncertainty, families and entrepreneurs continue to prioritise innovation and technology as drivers of future growth. Hong Kong’s proximity to major innovation centres in Mainland China provides direct access to cutting-edge technological developments.
The city’s family office ecosystem spans multiple sectors, from technology and artificial intelligence to arts and culture, creating a dynamic platform for cross-disciplinary collaboration.
However, Fong stressed that establishing a family office is not a short-term undertaking and requires a strong and sustainable financial services framework.
Hong Kong, he said, holds a distinct advantage over many jurisdictions, drawing on more than a century of development in wealth management and serving as home to a significant concentration of ultra-wealthy individuals and billionaires in Asia.
He cited the Harilela family as an example of long-term governance success. Dr Aron Harilela, Chairman and Chief Executive of Harilela Hotels Limited, said strong corporate governance has been central to maintaining unity within the extended family since the business was founded in 1930.
“The only way to make effective decisions is through good governance, and that is what we practise in Hong Kong,” he said.
Fong added that Hong Kong’s modern infrastructure, conducive business environment and professional expertise in family governance provide Malaysian families with opportunities to expand internationally, including through corporate listings in the city.
“With wealth management needs becoming increasingly complex, Hong Kong is expected to remain a strategic hub for high-net-worth families seeking not only to grow their wealth, but to preserve and pass it on in an orderly manner to the next generation,” he said. - February 20, 2026