Gold manufacturers eager for reopening of borders

GEORGE TOWN – As gold exports climb upwards again, gold manufacturers and their associations are hoping that international borders will reopen, enabling a boost in sales next year that will help lift the country’s economy.

Due to the pandemic, Malaysia’s export of manufactured gold dropped by 40.4% to RM 4.156 billion last year from RM6.974 billion in 2019.

For the near future, gold manufacturers are eying the Penang Signature Gold and Jewellery Fair (PSG) 2022, a project by Malaysia International Jewellery Fair (MIJF), initiated by Elite Expo and co-organised by Penang Goldsmiths and Jewellers Association.

Expected to be held in August next year, it aims to rake in sales of at least RM170 million in a single event.

Elite Expo chief executive officer Datuk Johnson Lim said there is a bright future for gold manufacturing and exports in Malaysia, especially in Penang, where 85% of the country’s gold manufacturers are located.

Hence, the PSG will continue to be held in Penang as the state is well known as the ideal shopping destination for gold jewellery.

“We hope that the international borders will open and remain open next year so buyers from other countries can descend on Penang for the trade show that is expected to bring in RM170 million worth of sales.

“It is very challenging for us to organise an international fair as it requires participants from all around the world to enter Malaysia. For now, there is still a lot of uncertainty because the question remains: Are we going to open up our borders? Will people who enter need to be quarantined? And for how long?

“Nevertheless, we are working closely with government agencies, and I know Penang is ready to promote the international fair. 

“It is challenging for participants to come into Malaysia. Still a lot of uncertainty. Are we really going to open up our borders? Is quarantine going to run? We are working closely with government agencies. Many are helpful in promoting meetings, incentives, conferences, and exhibitions,” he said during the strategic partnership agreement signing ceremony between Elite Expo and Penang Goldsmiths and Jewellers Association on Thursday.

Once the pandemic is under control, Lim is confident that PSG will bring in more sales than previous years, based on what the industry experienced during the 1998 economic crisis when they then had to cancel their exhibition. This year’s exhibition has also been cancelled.

In 2020, the fair achieved RM150 million in sales. Though RM170 million is projected for 2022, Lim said that it will be much higher if the gold price continues on its upward trend and international borders are open. The biggest buyers of manufactured gold from Malaysia hail from Singapore and Dubai.

He added that, as of today, the gold price is approximately RM250,000 per kg.

Chairman of Penang Goldsmith and Jewellers Association George Lo Siew Cheong said Malaysia is ranked 15th globally for value of jewellery exports, standing at US$750 million out of worldwide sales totalling US$69.2 billion.

“From the statistics, we realise that the gold and jewellery industry has greatly contributed to Penang’s economy.

“These exhibitions will not only directly help local goldsmiths to promote their products through this platform and open up more overseas markets, but also increase the reputation of Penang’s gold and jewellery industry on the international landscape.”

“We sincerely hope the state government will cooperate and assist our industry in all ways,” Lo added.

Penang State Executive Councillor for Tourism and Creative Economy Yeoh Soon Hin, who attended the signing ceremony, expressed his gratitude to PSG for enabling the state to not only be a conventional tourist destination, but also boast competency and capacity to host international business events.

PSG is set to be held at Setia SPICE Convention Centre, Penang from August 19 to 21, 2022. Retailers will be able to view a wide range of specific gold sources based on karat or millesimal fineness such as 22K, 21K, 18K and 916 gold. 

Different categories of jewellery such as bracelets, bangles, brooches, necklaces, rings and earrings will also be showcased. – The Vibes, November 21, 2021