KUALA LUMPUR: Demand for gold in Malaysia has increased significantly since a year ago, attributed to its recognised status as a safe haven, secure investment, and a hedge against inflationary pressures
According to research by Forex Suggest, Malaysia's demand for gold has surged by 27 per cent, moving the nation up to seventh place in the world in terms of rising demand.
This analysis clarifies the noteworthy increase in Malaysia's hunger for gold by looking at statistics on central bank gold reserves, consumer demand for jewelry, ownership in Exchange-Traded Funds (ETFs), and demand per capita.
The founder and chief executive officer of Grand Bullion Gold Sdn Bhd (GB Gold Malaysia), Shahfizzam Moideen, credited Malaysia's enduring love of physical gold for this increase in demand.
He told Business Times that the importance of gold is especially notable among the majority Muslim community because of cultural familiarity and religious convictions.
However, Moideen highlighted a challenge faced by the local market - the lack of Shariah standards for gold investing. This has led to some hesitation among investors in Malaysia regarding the suitability of gold as an investment asset.
"To cater to this growing demand, GB Gold Malaysia has introduced an initiative for buying and selling gold that encompasses physical stores and online sales offerings with a Shariah-compliant concept to reassure the public about purchasing assets without hesitation.
"The effort aims to instill confidence in the public to buy gold and engage in buying and selling transactions according to Shariah law," he said.
GB Gold Malaysia has become a Shariah-compliant gold sales company in its overall sales management, including physical stores and online sales offerings.
Moideen emphasized that the Shariah compliance highlighted is not just about obtaining a certificate; the consultants have the right to audit account transactions and inspect gold supplies at any time.
"The same concept is also practiced in the company, which is also known as customer account deposits, which have now reached 1,000 accounts. Based on this development, we aim to reach 10,000 accounts by the upcoming holiday season.
"The Shariah-compliant concept is also being implemented in two business branches that will be opened towards the end of this year in the northern and southern regions of the country. In five years from now, GB Gold will be in every 14 states nationwide," he added.