Latest news with #FederationofGoldsmithsandJewellersAssociationofMalaysia
The Star
26-05-2025
- Business
- The Star
Golden chance to lead regional trade
Chow (centre) with Chiah (left) and exhibition organising chairman Datuk Law Chin Hooi at the opening ceremony. — Photos: LIM BENG TATT/The Star PENANG can become a centre for regional gold trade, says Federation of Goldsmiths and Jewellers Association of Malaysia (FGJAM) president Datuk Chiah Hock Yew. 'Its deep-rooted legacy of goldsmiths paired with modern innovation have made Penang a powerful force in the global jewellery landscape. 'We welcome delegates from around the world to negotiate and do business here,' he said, adding that the state was the country's gold manufacturing hub. Chiah was speaking at the opening ceremony of the Malaysia Gold and Jewellery Trade Exhibition 2025 held at the Setia SPICE Convention Centre in Bayan Lepas. 'In recent years, international gold prices have reached record highs and the market environment continues to evolve rapidly. With challenges, come opportunities. 'For the industry to continue advancing, we must constantly improve our technology and craftsmanship, enhance our products and services, and accurately grasp market trends. 'Only by designing more exquisite gold jewellery can we win long-term consumer trust,' he said. Chiah highlighted Penang's significant role in Malaysia's gold industry, noting that the state accounts for approximately 80% of the nation's gold factories and gold jewellery manufacturing output. 'These are the manufacturers driving the industry toward greater heights. 'According to Statistics Department (DOSM), the total export value of gold-related products in Q1 2025 reached RM2.34bil, a 9.76% increase from RM2.132bil in the same period last year. Jewellery modelled at the exhibition reflecting Penang's legacy of goldsmiths pairing heritage with innovation. 'These encouraging figures reflect Malaysia's potential in the global gold market,' he said. The trade show that hosted 150 exhibitors was organised by Province Wellesley Gold and Silver Ornament Merchants Association and by the Malaysia Gold Association. Guest of honour Penang Chief Minister Chow Kon Yeow said this year's exhibition was timely due to global economic tide shifts driven by geopolitical and tariff tensions. 'We find ourselves in a new and uncertain global landscape, but where some see volatility, we, in Penang, see opportunity. 'There has been a surge in global gold prices, which recently topped US$3,000 (RM12,693) per ounce. 'This is not just market fluctuation but a signal that gold is proving its timeless value as a secure and reliable investment, especially during economic turbulence,' he said. Chow shared DOSM data showing that jewellery imports reached RM1.519bil in the first two months of 2025, an 18.39% increase from the same period last year. 'Exports are up by 14.75% to RM1.478bil. These figures not only reflect robust demand, they reaffirm Malaysia's growing role in the global jewellery supply chain,' he said.
The Star
26-04-2025
- Business
- The Star
Gold rush among investors
Soaring prices and global uncertainties can't stop buying frenzy PETALING JAYA: All that glitters is gold these days, with investors in a buying frenzy for the prized commodity. Soaring gold prices and global uncertainties are fuelling the appetite for the traditional safe-haven asset. 'There is still a lot of interest in investment for (gold) bars,' said local jeweller Tomei Consolidated Bhd managing director Datuk Ng Yih Pyng. Ng, who is also the adviser of the Federation of Goldsmiths and Jewellers Association of Malaysia, said the uptake for jewellery usually slows down after the festive season. On whether he expects prices to rise, he said the outlook for gold remains bullish and central banks too are increasing their gold reserves. 'As long as central banks are buying, the chances for gold (prices) to come down is difficult,' he said. Rakuten Trade Sdn Bhd head of research Kenny Yee Shen Pin said the interest in gold as an asset class may be fuelled by the forecast that the price of gold will hit US$5,000 (RM21,880) per troy ounce by year end. 'I think gold is seeing unprecedented buying support over the last year,' he said. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the demand for gold from global central banks has increased by 20.2% per annum, based on a compound annual growth rate (CAGR) from 2010 to 2024. 'At the same time, we also see that the share of US dollar global forex reserve share has gone down from more than 70% in the 1990s to 58% in 2024. 'On that note, the de-dolarisation has occurred and it seems that gold has become prominent, especially among the central banks,' he said. (De-dollarisation refers to nations reducing reliance on the US dollar as a reserve currency.) 'It also appears that the current uncertainties over US tariffs have compromised confidence in the United States as the safe haven status. So, the tariff war would actually accelerate the de-dolarisation,' he added. Sunway University economics professor Dr Yeah Kim Leng said the uncertainties, especially with US President Donald Trump's tariffs, have fuelled the demand for safe-haven assets. 'Gold is a safe-haven asset that experiences strong demand and price increases during uncertain times such as that being experienced now with Trump's unprecedented unilateral tariff hikes,' he said. 'Besides uncertainty, another major factor causing the rise in gold prices is de-dollarisation as central banks, particularly China, shift reserve holdings from US Treasuries to gold in light of worsening US economic fundamentals such as rising fiscal deficits and debts,' he added. Spot gold briefly hit a record high of US$3,500 per troy ounce (RM15,444) on Tuesday before easing and trading at the US$3,299.69 (RM14,420) mark yesterday. JP Morgan has predicted that gold prices could breach US$4,000 per troy ounce by 2Q26 although some analysts are already looking at US$5,000 per troy ounce by the year-end.
