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WEDNESDAY | FEB 4, 2026

Malaysia on track to become global physical gold trading hub

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

KUALA LUMPUR: Malaysia is on a trajectory to become a global physical gold trading hub, supported by government policies, integrated precious metals ecosystem and the upcoming industry governance framework, Malaysia Gold Industry Principles (MGIP). Malaysia Gold Association (MGA) president Datuk Seri Louis Ng ( pic ) said, Malaysia is structured, capable and future-oriented to position itself as a key player in the global gold market. “The precious metals industry is expanding rapidly and currently employs about 250,000 people nationwide. Our government is always setting the right policies for the healthy growth of the precious metals industry in Malaysia, es-pecially the gold sector,” he said at the Malaysia Gold Conference 2026 here yesterday. Ng said these policies include zero import and export duties on gold bullion, no domestic consumption tax on investment-grade gold bars, as well as efficient and transparent customs processes. “These features make Malaysia a cost-effective and efficient market for refiners, traders, jewellery manu facturers, logistics providers and investment institutions,” he said, adding that Malaysia’s gold and precious metals industry aligns its practices, quality controls and trading systems with international standards that are already trusted by global investors, refiners and institutions. He emphasised that Malaysia actively participates and trades in compliance with London Bullion Market Association (LBMA) Good Delivery standards, Shanghai Gold Exchange (SGE) standards and UAE PETALING JAYA: Fluctuations in the ringgit are a normal part of today’s global economic landscape, and Malaysian businesses must adapt their strategies rather than react defensively, said Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani. Speaking at the official launch of GD Xchange Experience Centre yesterday, Johari said currency movements create both winners and losers across sectors, depending on the nature of their operations, cost structures and market exposure. “The ringgit going up or down will benefit some sectors while affecting others,” he said, adding that there is no one-size-fits-all response for busi-nesses facing currency volatility. Johari stressed that companies must adopt tailored risk-management strategies, including hedging mecha nisms, supply chain planning and pricing adjustments, to protect both operations and customers. Export-oriented firms, particularly those dealing in commodities, would require a different approach com-pared with consumer-focused busi-nesses or companies producing finished goods,” he added. “As a business entity, there are many Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com

Bluebook and rele-vant Sirim standards, and covers eight key areas. “MGIP will serve as the foundation for self-regu lation within Malaysia’s gold industry to ensure responsible sourcing, ethical practices, trans parency and anti-fraud protection,” Ng said, adding that it also em phasises product inte-grity, anti-counterfeiting controls and alignment with global compliance

o MGA president says country is a cost-effective and efficient market, supported by government policies, integrated ecosystem and alignment with international standards

Malaysia, he said, already has international credibility and leader ship in Islamic finance, and this gives it a natural advantage in developing syariah-compliant gold and precious metals products. “Malaysia is internationally recognised as a world-class halal certification leader, a pioneer in Islamic finance governance, a global reference for syariah-compliant investment structures and a long-standing leader in standard-setting.” To strengthen syariah compliance within the precious metals industry, Ng said, Malaysia has established the world’s first institutional Syariah Advisory Board dedicated specifically to the sector, under the auspices of MGA. “This initiative positions Malaysia as the global hub of choice for syariah compliant precious metals solutions.” Ng said MGA will introduce MGIP to enhance and strengthen the country’s gold trading landscape, amid rising gold prices and height-ened regulatory scrutiny.

Good Delivery. Ng said Malaysia has built a complete, end-to-end precious metals ecosystem, from upstream to downstream, all operating within the country and aligned with inter-national standards. “Malaysia is among the few countries in the region with a fully integrated precious metals value chain, span-ning upstream mining, refining and bullion minting, as well as jewellery design and manufacturing.” He noted that the ecosystem encompasses wholesale and regional distribution, a strong retail network, micro-financing including syariah compliant pawnbroking, as well as responsible recycling and metal recovery. “This comprehensive capability differentiates Malaysia from well known global financial centres such as Hong Kong, Singapore, Dubai, Switzerland, London and New York,” Ng said. “It demonstrates that Malaysia possesses a complete and mature ecosystem, something that is difficult to find elsewhere.”

He noted that en authorities recently conducted raids on certain gold shops found to have quality compliance issues. “With MGIP in place, one of the key modules will forcement

expectations. MGIP is also expected to support the expansion of Malaysia’s jewellery manufacturing and export sector into developed markets. “In addition, this initiative can stimulate the growth of syariah compliant gold investments, digital gold and innovative financing models,” Ng said. He added that deeper alignment with global institutions such as LBMA, SGE, Dubai Multi Commo-dities Centre and UAE Good Delivery will position Malaysia as a regional centre for certification, education and gold industry technology. MGIP is scheduled to be officially published and launched in the third quarter of this year. domestic economy. Against this backdrop, Johari em phasised that improving productivity and efficiency is critical to cushioning the effects of external shocks, including ringgit volatility. Digitalisation, automation and tech nology adoption play a key role in enabling businesses to extract greater value from their operations and remain resilient. Initiatives such as GD Xchange, he said, support this objective by lowering barriers to technology adoption, particularly for SMEs that may lack the resources to invest in advanced systems independently. “Digital solutions are no longer optional. They are foundational,” Johari said, adding that technology adoption helps businesses become more efficient, less reliant on foreign labour and better positioned to navigate cost pressures arising from currency fluctuations. As global uncertainties persist, Johari reiterated that Malaysian businesses must focus on adaptability rather than attempting to predict currency movements. “The ringgit will move. What matters is how prepared businesses are to manage the impact.” GD Xchange is the technology arm of GDEX Bhd.

focus on quality control and member compliance. Although participation in MGIP is voluntary, it will set clear standards for responsible practices,” he said. Participating retail outlets are expected to display an MGIP logo or certification mark to indicate com pliance. “This will gradually help shape a more trustworthy and transparent gold trading ecosystem for the nation,” Ng said. MGIP was developed in colla boration with key industry players and inspired by international best practices. The framework references the World Gold Council’s Retail Gold Investment Principles, as well as regulatory models from India, the UAE stability in the external sector. In 2025, Malaysia’s total trade surpassed RM3 trillion for the first time, supported by a 6.5% growth in merchandise exports to RM1.6 trillion, despite challenging global conditions. However, Johari noted that recent tariff actions by the United States and ongoing trade tensions between major economies have added further complexity to the operating environ ment for Malaysian businesses. “The most important thing is to make sure any business that operates in Malaysia is not affected by tariffs,” he said, noting that currency movements, tariffs and trade policies are increasingly interconnected. Johari explained that Malaysia’s approach to managing these challenges is rooted in balance and pragmatism. While the country maintains strong trade ties with both the US and China, decisions are made based on economic outcomes rather than political alignment. He pointed out that over the past decade, Malaysia has recorded a significant trade surplus with the US, while experiencing a trade deficit with China. These dynamics, he said, must be carefully weighed when assessing the broader impact of currency movements and trade agreements on the

Ringgit fluctuations demand business adaptability: Johari

Johari (second, left) at the official launch of GD Xchange Experience Centre yesterday. With him are (from left) GDEX Bhd managing director and group CEO Teong Teck Lean, chairman Tan Sri Muhammad Ibrahim and GD Xchange Sdn Bhd CEO Edmund Teong. – BERNAMAPIC

external pressures have had a direct impact on currency markets, including the ringgit, which has seen periods of volatility against the US dollar. Johari said Malaysia, as a highly open economy, remains particularly sensitive to global trade develop-ments. Trade accounts for about 157% of the country’s gross domestic product, underscoring the impor-tance of maintaining competitiveness and

ways to manage risk such as how you hedge, how you protect your supply chain and how you protect your customers. It depends on the type of business you are in,” he said. The minister’s remarks come amid heightened global economic uncertainty, driven largely by geopolitical tensions, rising protectionism and aggressive tariff policies by major economies. These

See also page 14