Cover Malaysia is strengthening its position as a family office hub, supported by tax-friendly policies and investment opportunities (Photo: Pixabay)
Malaysia is strengthening its position as a family office hub, supported by tax-friendly policies and investment opportunities (Photo: Pixabay)
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As global family offices expand their property portfolios, Malaysia’s strategic location and robust economic policies make it a key player
According to The Wealth Report 2025 by Knight Frank, family offices worldwide are increasing their exposure to real estate, recognising its potential for long-term growth and wealth preservation.
The report reveals that 44 per cent of global family offices plan to expand their real estate investments in the coming 18 months, with particular attention to living sectors, industrial and logistics, as well as luxury residential properties.
For Malaysia, this trend arrives at an opportune moment. As the nation positions itself as a regional nexus for family offices, its real estate sector—steeped in strategic potential and bolstered by policy foresight—is poised to redefine how wealth is cultivated, preserved, and passed forward.
Read more: How the rise of HNWIs is shaping Malaysia’s luxury property boom
Above Liam Bailey, global head of research, Knight Frank (Photo: Knight Frank)
Liam Bailey, global head of research, Knight Frank (Photo: Knight Frank)
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According to Knight Frank’s survey of 150 family offices managing over US$84 billion in assets, 28 per cent expanded their property portfolios in the past 18 months, outpacing those scaling back by nearly double. Offices, luxury residences, and industrial spaces dominate current holdings, but the future lies in what Liam Bailey, Knight Frank’s global head of research, terms the “living sectors”—a trifecta of residential, industrial/logistics, and high-end housing.
“The living sectors, industrial/logistics, and luxury residential are the top areas of focus,” Bailey notes, reflecting a global pivot toward assets that marry functionality with aspirational value.
Yet this isn’t mere opportunism. Real estate’s appeal lies in its duality: it is both tangible and symbolic, a safeguard against inflation and a statement of legacy. Property offers a rare confluence of utility and prestige for family offices, which often balance financial pragmatism with dynastic ambition.
Malaysia’s ambition to become Southeast Asia’s family office hub is neither sudden nor serendipitous. Strategic tax incentives, streamlined regulations, and a maturing financial ecosystem have quietly transformed the nation into a magnet for ultra-high-net-worth individuals (UHNWIs) and institutional capital.
Above Keith Ooi, group managing director, Knight Frank Malaysia (Photo: Knight Frank)
Keith Ooi, group managing director, Knight Frank Malaysia (Photo: Knight Frank)
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As Keith Ooi, group managing director of Knight Frank Malaysia, observes, “Kuala Lumpur continues to attract wealth management firms, while Johor is gaining traction among investors seeking strategic opportunities.”
Johor’s rise is emblematic of Malaysia’s broader narrative. Its proximity to Singapore, coupled with burgeoning industrial and logistics sectors, positions it as a linchpin in regional supply chains. The surge in e-commerce and cross-border trade has turned the state into a hotspot for high-specification industrial facilities—a trend amplified by geopolitical recalibrations and Malaysia’s proactive FDI policies.
See also: What goes into great hotel design?
Above Allan Sim, senior executive director of land and industrial solutions, Knight Frank Malaysia (Photo: Knight Frank)
Allan Sim, senior executive director of land and industrial solutions, Knight Frank Malaysia (Photo: Knight Frank)
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Allan Sim, Knight Frank Malaysia’s senior executive director of land and industrial solutions, underscores this: “Industrial and logistics real estate offers sustainable investments with long-term redevelopment angles. Demand in Greater KL, Johor, and Penang remains robust.”
But Malaysia’s allure isn’t confined to factories and warehouses. Luxury residential properties and premium office spaces in urban centres like Kuala Lumpur continue to draw discerning investors. These assets, Ooi explains, resonate with those seeking “stable returns and long-term value”—a sentiment echoed by global family offices increasingly wary of volatile markets.
Knight Frank’s report also reveals another quiet revolution: 63 per cent of millennial-led family offices have already allocated capital to sustainable investments, compared to 35 per cent of their baby boomer counterparts. This generational handover isn’t just changing portfolios; it’s redefining priorities. Environmental, social, and governance (ESG) considerations now shape real estate strategies, with next-gen leaders demanding assets that align with ethical benchmarks and climate resilience.
Don’t miss: Sustainable real estate and more: The luxury property trends that defined Asia-Pacific in 2024
Above Developers and investors in Malaysia are shifting towards greener initiatives when it comes to real estate and property (Photo: Pixabay)
Developers and investors in Malaysia are shifting towards greener initiatives when it comes to real estate and property (Photo: Pixabay)
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In Malaysia, this shift mirrors global currents. Developers and investors alike are prioritising green certifications, energy-efficient designs, and community-centric projects. The focus on ESG isn’t altruism alone—it’s a recognition that sustainability drives longevity. As younger generations assume leadership, properties that balance profit with planetary stewardship will dominate portfolios.
While real estate commands attention, Knight Frank’s Luxury Investment Index (KFLII) offers a curious counterpoint. In 2024, handbags (+2.8 per cent) outperformed traditional luxuries like fine art (-18.3 per cent) and rare whisky (-9.0 per cent). Yet this divergence underscores a broader truth: diversification remains paramount. For family offices, real estate’s stability complements the speculative allure of collectibles, creating a balanced narrative of preservation and passion.
Above Amy Wong, executive director of research and consultancy, Knight Frank Malaysia (Photo: Knight Frank)
Amy Wong, executive director of research and consultancy, Knight Frank Malaysia (Photo: Knight Frank)
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Malaysia’s bid to become a family office hub is more than policy or geography—it’s a testament to foresight. By leveraging industrial growth, urban sophistication, and sustainable innovation, the nation offers a blueprint for wealth stewardship in an uncertain world. As Amy Wong, Knight Frank Malaysia’s executive director of research and consultancy, concludes: “Real estate’s resilience and the rise of next-gen priorities position it as a cornerstone of family office strategies.”
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Sim Wie Boon is the general manager of Tatler Malaysia. Previously the print and digital editor, Sim hails from the land of the hornbills, Sarawak. Sim is now based in Kuala Lumpur and brings more than a decade of experience in the media industry as a journalist and broadcast producer.
As a self-proclaimed geriatric millennial, he appreciates the finer things in life, from savouring a sip of single malt whisky to relishing in the deliciousness of char siew. While reminiscing about the indie-sleaze era, Sim now finds solace in the soothing tunes of ambient music, staying active through running and occasionally succumbing to the addictive world of doom scrolling.
Follow him on Instagram or Threads at @simwb
