Blog PGIJS 2020

Elucidating The Rich History of Malaysia’s Traditional Gold Industry!

29 Feb,2020

Malaysia's traditional gold industry

Gold is by far the most exchanged trading commodity around the globe. Malaysia’s gold jewelleries are considered fine and authentic with the most excellent gold craftsmanship among Southeast Asia region. The birth of jewellery industry of Malaysia took place more than 150 years ago. Many goldsmiths came to Malaysia from different place around the world. They gathered and settled themselves in Penang & Kelantan. Now, Penang boasts itself as the fusion of eastern and western cultures of jewellery.

Specifically, Penang’s Gold and Jewellery Industry has its history for over a century and is well paying its role as the main contributor to the Malaysian gold and jewellery industry. The exquisite gold jewelleries with Made-in-Malaysia tag are well-known across the globe and always stands out in international markets with their special unique local design depicting diverse cultural background.

In the 1990s, Malaysia was the world’s most important gold jewellery hub. And Penang was the core of it. Gaining experience in global export, Penang jewellery industry has a matured and good manufacturing process along with the usage of smart technology. Penang has also gained its reputation as possessing one of the best gold craftsmanship in the world.

According to industry sources, approximately 48-52 tonnes of the gold and jewellery in Malaysia are manufactured or fabricated in Penang, followed by Johor Bahru and Kuala Lumpur. In Malaysia the gold production and execution have a definite pathway where the smaller producers usually sell their gold ores to local goldsmiths who then smelt and refine them at their own premises for making into jewellery.

Major gold mines in Malaysia are in Pahang, namely Penjom, Raub and Selinsing, as well as some minor areas in Kelantan and Terengganu. According to the statistics back in 2011, the annual production of gold was 4,219 kg and the production rate has been increasing over the years. As of 2012, there are a total of 15 active gold mines in Pahang, Kelantan, and Terengganu and as of 2015, Pahang alone accounted for 74% of the country’s output.

Malaysia has all the right sources to make it big in Jewellery industry, predominantly gold as the location is suitable, revenue to extract the gold, profit margins, accessibility to the project site, distance to nearest airport and finally the terms and conditions of the mining project. Every dimension seems good to flourish in the given direction and Malaysia has made it big slowly and gradually.

For Malaysia as a nation, the major export markets are the Middle East at almost 90 percent, North & South America at 6 percent and European countries at 4 percent. Of the jewellery fabricated out of Penang, approximately 60 percent are headed for the Dubai market, with Hong Kong, Singapore and the European markets making up for the remaining 40 percent.

Federation of Goldsmiths and Jewellers Association of Malaysia has released a report where Malaysia is stated as a significant gold jewellery exporter, of around 50 tonnes worth annually, mainly to the Middle East countries.

With a good boost in jewellery industry, an association was established in Malaysia to overcome a whole range of obstacles and difficulties established for the better development of the gold trade and the need to protect of the legitimate rights of fellow members. The new constitution was duly approved by the Registrar of Societies on 25 July 1985. With the formation of the association, it brought in plate a better understanding and relationships between members which standardized retail charges of gold and other jewellery ornaments. Now to further strengthen the entire ecosystem of Malaysian jewellery industry, Penang International Jewellery show is all set to provide a one-stop platform for all the gold jewellery manufacturers, traders, retailers and jewellery designers, providing unlimited business opportunities under one roof.