Higher price to increase M'sian gold jewellery exports...

Monday May 9, 2011

Higher price to increase M'sian gold jewellery exports to RM4.25bil

By DAVID TAN
davidtan@thestar.com.my

GEORGE TOWN: The value of gold jewellery products exported from Malaysia this year is expected to increase by about 10% from approximately RM3.8bil last year to about RM4.25bil.

Penang Goldsmith Association (PGA) chairman Joeson Khor said the figures last year did not achieve the target set which was over RM5bil due to the turmoil in the Middle East and the high price of gold, which was around US$1,400 per ounce last October.

“This year there would be an increase in the value of gold jewellery products exported from Malaysia due to the growing interest in commodity investment worldwide and in the Middle East. The rising price of gold would also increase the value of gold jewellery products exported,” he told StarBiz.

Presently, the price of gold per ounce is US$1,495.

The value of gold jewellery products imported during the first two months of 2011 was around RM22.4mil, according to Penang Goldsmith Association chairman Joeson Khor.

“Gold prices hit about US$1,580 per ounce last week but dropped to US$1,547 this week after Osama's death was announced.

“The slight drop could be due to the fact that there would be more stability in the supply of commodities following Osama's death and speculators selling off gold to make profits,” he said.

According to the latest Malaysia External Trade Development Corp (Matrade) report, the export value of gold jewellery products for the first two months of 2011 was RM627mil, compared with RM565.6mil achieved in the previous corresponding period.

Khor said the value of gold jewellery products imported during the first two months of 2011 was around RM22.4mil, compared with RM14mil achieved in the same period last year.

Joeson Khor

For 2010, the value of imported gold jewellery products was RM152mil, compared with RM109mil in 2009.

“The removal of import duties on gold jewellery products last April had to do with the rise in the importation of gold jewellery products. The increase has resulted in more competition in the gold jewellery trade and loss in market share of local gold jewellery manufacturers,” Khor said.

Starting May 1, 2011, the labour charge for gold jewellery products has risen by 30% to 50% due to inflation.

“After the increase, the labour charge for a RM1,000 gold jewellery item is between RM130 and RM150, compared with M100 previously. This means the selling price of the gold item will be RM1,130 to RM1,150 after including labour charges,” he said.

“This was decided at a meeting by the PGA last month,” he said, adding that the decision made in Penang had affected the pricing nationwide as 90% of the gold jewellery manufacturers come from Penang.

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