Dato’ Wira Louis Ng, President of Malaysia Gold Association (MGA), who is also the Founder and Executive Chairman of Public Gold Group and Honorary Consul of Kazakhstan in Penang, has recently been invited exclusively by China Gold Association (CGA) to speak at the prestigious 2024 China Gold Congress and Expo that was held from July 26-28, 2024 in Shanghai.

Led by President of MGA, Dato’ Wira Louis Ng, MGA has impressed the event organiser with the largest delegation of 20 entities (of various ethnicities and related industries) in attendance. The delegation consisting of Vice President of MGA, Datuk Haji Abdul Rasull Bin Abdul Razak, Secretary of MGA, Dato’ Abdul Wahab Bin Hamid, Treasurer, Dato’ Jeff Kua, committee members as well as general members, has shown the World of its substantial influence among gold industry players in Malaysia.

At the official visit, MGA was well-received by leaders from four world-renowned gold organizations namely Mr. Zhang Yongtao, Party Secretary of the China Gold Association (CGA), Mr. Yu Wenjian, Chairman of the Shanghai Gold Exchange (SGE), Ms. Ruth Crowell, CEO of London Market Bullion Association (LBMA), and Mr. Sachin Jain, Regional CEO of World Gold Council (WGC) in India.

During the meeting with Shanghai Gold Exchange (SGE), both MGA and SGE have expressed their intentions to enhance future exchanges and strengthen cooperation between the Chinese and ASEAN gold markets. Dato’ Wira Louis Ng highlighted on the strengths of Malaysia being geographically strategic, diverse in demographics (that drives varied demands), multilingual capabilities (which aids market expansion), and business-friendly policies (facilitating international collaborations). These are advantages that makes Malaysia the best gold trading hub, especially for countries which are freshly entering the Southeast Asian gold market.

LBMA and MGA on the other hand, discussed about the membership requirements, and future market trends during the meeting. Ms. Ruth Crowell, CEO of LBMA has also expressed willingness to provide online training to Malaysia’s gold industry players, should the need arise.

On top of that, MGA has also met with Mr. Sachin Jain from World Gold Council (WGC), whereby WGC explained its objectives to MGA members, while the two parties were discussing about mutual potentials and future collaboration opportunities between the two organizations.

According to MGA President, Dato’ Wira Louis Ng, “The delegation’s visit to China Gold Congress and Expo 2024 under MGA had been exceptionally fruitful. It not only enhanced global visibility of MGA, but also laid the foundation for future international collaborations for Malaysia’s gold industry players. The meetings with several prestigious international organizations have further solidified Malaysia’s position and influence in the Southeast Asian gold market.”

MGA President also stressed that the exchange not only broadened members’ perspectives but will also help improve the international competitiveness of Malaysian industry players.

Speaking at the 2-day 2024 China Gold Congress and Expo that attracted over 2,000 gold and jewellery industry professionals, banks, and related institutions worldwide, Dato’ Wira Louis delivered a talk under the “Belt and Road (BRI)” Gold & Jewellery Cooperation segment, entitled “Malaysian Gold & Jewellery Market BRI in Malaysia-China Trade Relations.”

In his talk, Dato’ Wira Louis Ng shared insights on Malaysia’s gold and jewellery trends, market size, consumer behaviours, regulatory framework, as well as highlighted various advantages of Malaysian market, while enhancing collaborations with China in the gold and jewellery sector, by improving on infrastructure and trade, reducing logistics costs, and boosting supply chain sufficiency. This has given global industry players a comprehensive understanding of Malaysia’s gold market trends and its prospects.

The China Gold Congress and Expo is China’s largest international gold industry event and a prestigious global gold industry gathering. It aims at facilitating international exchange and collaboration, providing a platform for industry players to learn from each other and discuss forward-looking issues in the global gold industry.

Themed ‘Innovation-Driven, Green Development, and Shared Future’ this year, the event focuses on three sectors, namely gold mining, gold market, and gold consumption. Not only that, issues such as green mine construction, resource utilization, safety production, intelligent applications, and gold ESG were also discussed. The aim of this event is to build a green and healthy development path for the global gold industry and gold market.

Malaysia Gold Association (MGA) on the other hand, had successfully hosted 300 international delegates at the 2nd Edition Malaysia Gold Conference in February earlier this year. Started off as an annual event, this international gold event will now be hosted bi-annually by MGA, with the 3rd Edition World Gold Conference to be held in the first quarter of 2026.

Market Overview: The Malaysian gold and jewellery market covers a wide range of activities, including mining, refining, minting, trading, and more.

The export of gold jewellery from Malaysia has experienced notable fluctuations over the past few years. In 2019, exports reached a significant peak of 42.4 metric tons, showcasing a robust performance in the international market. However, this upward trend did not sustain, as exports declined to 30.3 metric tons by 2023. This decline reflects various market dynamics and external factors influencing the gold jewellery sector. Concurrently, the total demand for gold in Malaysia, encompassing both jewellery and bullion consumption, also exhibited variability. The demand reached its zenith in 2022, with a total of 18.5 metric tons, indicating a strong consumer interest and investment in gold. Nonetheless, this demand slightly tapered off to 16.6 metric tons in 2023, suggesting a shift in consumer behaviour or economic conditions impacting gold purchases. These trends highlight the dynamic nature of the gold market in Malaysia, influenced by both domestic and international factors.

Market Trends: There has been a fluctuation in gold jewellery export and consumption from 2019 to 2023, with notable changes in total sales.

The Malaysian gold jewellery market has demonstrated a consistent upward trajectory in total sales over recent years. In 2020, the market recorded sales amounting to MYR 5.6 billion, reflecting a solid performance despite global economic uncertainties. This positive trend continued, with total sales climbing to MYR 7 billion by 2022. This steady increase underscores the growing consumer demand and the resilience of the gold jewellery sector in Malaysia. Additionally, the sales landscape has been significantly influenced by the shift towards digital platforms. Online sales of gold jewellery have seen a remarkable rise, starting from a modest 3.6% of total sales in 2017. This figure is projected to surge to 19.7% by 2025, highlighting the increasing preference for online shopping among consumers. This shift not only broadens market reach but also offers convenience and a wider selection for buyers, further driving the growth of the gold jewellery market in Malaysia.

Challenges: The Malaysian gold and jewellery market faces several significant challenges that impact its growth and stability. Economic fluctuations play a crucial role, as they directly affect consumer spending on luxury goods, including gold and jewellery. During periods of economic downturn, consumers tend to reduce their expenditure on non-essential items, leading to a decline in market demand. Additionally, uncertainty regarding future policies creates an unstable environment for investors and businesses, making it difficult to plan long-term strategies. Regulatory differences between Malaysia and China further complicate trade cooperation, as businesses must navigate varying legal frameworks and compliance requirements. Moreover, cultural preferences between the two countries can influence product acceptance and market dynamics, requiring companies to tailor their offerings to meet diverse consumer tastes. These challenges necessitate strategic planning and adaptability from industry players to sustain growth and capitalize on emerging opportunities.

Opportunities: Leveraging digital platforms and e-commerce growth can broaden market reach and reduce logistical costs.

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