Malaysia

Authorities seize RM82,700 worth of gold over purity mismatch in KL raid

The Ministry of Domestic Trade and Cost of Living has seized more than 3,500 pieces of gold after tests found the metal fell far short of the purity level advertised

Updated 8 months ago · Published on 18 Jan 2026 12:02PM

Authorities seize RM82,700 worth of gold over purity mismatch in KL raid
KPDN encounters the haul during a special enforcement operation targeting misleading trade practices in the precious metals sector - January 18, 2026

THE Ministry of Domestic Trade and Cost of Living has carried out a special enforcement operation leading to the seizure of thousands of gold items after laboratory tests revealed that the products did not meet the purity standards claimed by the seller.

The operation, known as Ops Tulen, was conducted by the ministry’s Enforcement Division under the Trade Descriptions Act 2011. It involved six enforcement officers and targeted a business premises located at a commercial centre in Kuchai Lama.

Inspections found that the premises was selling precious metal products, namely gold, through social media platforms.

Tests carried out using X-Ray Fluorescence equipment on gold coins purchased by enforcement officers showed that the actual gold content was significantly lower than the purity stamped on the items.

Although the products were marked as AU 999.9, analysis revealed that the average gold content was only about 77 percent, which was clearly inconsistent with the purity level advertised.

Further investigations found that the premises acted as a supplier to retailers marketing the same gold products online, and the items displayed at the premises were identical to those promoted on social media.

Tests conducted on additional gold items seized from the location showed varying levels of gold content, ranging between 80 percent and 98 percent for pieces weighing 0.01 grams each.

As a result, the business is suspected of committing an offence under Section 5(1)(a) of the Trade Descriptions Act 2011 for breaching prescribed purity standards for goods made of precious metals.

During the raid, enforcement officers seized 3,545 pieces of gold items in various forms that were marked with specific purity standards, along with related equipment and documents for further investigation. The total value of the seizure was estimated at RM82,725.

The ministry said legal action would also be taken against any party found to have made false trade descriptions relating to the content, type or name of goods under Section 5(1)(c) of the same Act.

Under the law, individuals found guilty may be fined up to RM250,000 or jailed for up to three years, or both, for a first offence. For second or subsequent offences, fines may reach RM500,000 or imprisonment of up to five years, or both. Companies may face fines of up to RM500,000 for a first offence and up to RM1 million for repeat offences.

The ministry stressed that it will continue to intensify enforcement efforts to curb misleading and deceptive business practices, particularly in the sale of precious metal products. Consumers were urged to remain vigilant and to report any suspected violations to ensure their interests are protected.

Members of the public can lodge complaints or provide information to the ministry via WhatsApp at 019-848 8000, the e-Aduan KPDN portal, the call centre at 1-800-886-800, or the Ez ADU KPDN mobile application. - January 18, 2026

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