What are the Incentives and Requirements of setting up a "Single Family Office" in Malaysia?

Minister of Finance II, Senator Datuk Seri Amir Hamzah Azizan announced the Single Family Office scheme as part of incentive packages for the Forest City Special Financial Zone on 20 September 2024.

Meanwhile, Securities Commission Malaysia (SC) has been tasked with coordinating the Single Family Office incentive scheme.

This comes after the Prime Minister Dato’ Seri Anwar Ibrahim’s announcement last year on policies to encourage establishment of family offices in Malaysia to draw a larger pool of investors that will widen the financing support for SMEs and the new economy.

So, let's look at the incentives given...

Substantial stake acquisition of LPI Capital Bhd by Public Bank Bhd ~ Is it a good deal?

The rumours had finally come to an end. It's now confirmed that Public Bank Bhd (PBB) is going to acquire 44.15% stake in LPI Capital Bhd (LPI) from the family of the late Tan Sri Teh Hong Piow.

Both companies were founded by the late Tan Sri Teh, who passed away in 2022. LPI Capital is mainly in general insurance business under the brand name of Lonpac.

Lonpac currently has 21 branches throughout Malaysia and 1 branch in Singapore. LPI also operates in Cambodia through a 45%-owned associated company. The remaining effective equity interest of 55% in Campu Lonpac Insurance Plc is held by PBB.

The Proposal

• Acquirer : Public Bank Bhd
• Vendor : Family of the late Tan Sri Teh Hong Piow
• Subject : 44.15% stake of LPI Capital Bhd
  
• Offer Price : RM9.80 per share
• Offer Value : RM1.72 billion cash 💢

Let's do some analysis