Over RM100 billion in offshore assets exposed. Malaysia’s tax authorities, through the Automatic Exchange of Financial Account Information (AEOI), have identified nearly 15,000 tax residents with undeclared overseas financial assets.
Jurisdictions involved include:
Luxembourg, Hong Kong, the Cayman Islands, the Bahamas, Bermuda, and other traditional offshore financial centres.
What does this mean for SMEs?
- “Offshore equals safe” is a thing of the past: Cross-border funds and assets have fully entered the era of tax transparency, leaving little room for concealment.
- Greater accountability for businesses and shareholders: Corporate structures, shareholders’ personal assets, overseas investments, and foreign income are increasingly subject to tax scrutiny.
- Voluntary disclosure = manageable risk
3 key checks SMEs should conduct immediately
- Any undeclared offshore accounts or investment income
- Cross-border payments or related-party transactions
- Whether existing tax structures can withstand international information exchange reviews
**Last Updated on 06.02.2026
(201706002678 & AF 002133)