Steeped in culture and history, gold jewellery is constantly in demand among the people in ASEAN countries, Malaysia has for instance has been predominantly a gold jewellery market for decades. We have also been a major exporter of gold jewellery. Prior to the Covid-19 pandemic, gold jewellery manufacturing in Malaysia stood at 44-52 tonnes, with 75% – 80% of the gold jewellery fabricated in Penang (Island and Butterworth).
According to Dato’ Chiah Hock Yew, President of FGJAM, “The most common and widely traded jewellery products in Malaysia are the 22-karat gold jewellery which made up nearly 90% of Malaysian gold jewellery market, followed by the 18K and 24K gold products.”
The demand for gold in Malaysia has been consistently high. Unlike Singapore, the Malaysia gold jewellery market has never been affected by the Goods and Services Tax (GST). Malaysians have been privileged to be able to buy gold jewellery at a tax-free rate. However, the sustainability of the gold and jewellery industry in Malaysia remained unclear with the impending High Value Goods Tax (HVGT). To minimise the impact of HVGT on Malaysian gold industry, MGA has suggested for the government to consider setting a reasonable threshold price of RM50,000 for gold jewellery, with the lowest tax rate of 5%.
“The jewellery industry is crucial for the Malaysian market. We have thousands of jewellery shops and factories. If the threshold price is not rightly set, it would affect the industry greatly, such as job losses, and even risk losing prospective foreign investors like China altogether,” said Dato’ Wira Louis Ng, President of MGA.
“Consumers in Malaysia mainly purchase gold jewellery for gifting purposes, personal collections and/or to hedge against inflation. In the recent years, Malaysia’s jewellery market saw a surge in demand for traditional and cultural pieces, not just among middle aged women, but also younger generations, which reflects the country’s rich heritage and diverse population,” he added.
Malaysia Gold Association recently organised the 2024 China-ASEAN Gold and Jewellery Trade Collaboration Forum with China Gold Association and United Overseas Bank (UOB) of China, that hosted more than 50 delegates (consisting of gold veterans, investors, bankers, jewellers) from 8 ASEAN countries to share insights on regional gold market trends, local demands, and other international trade-related matters (such as opportunities and challenges), here at Menara Public Gold, Kuala Lumpur, recently.
