Kuala lumpur: Malaysia must enhance its local gold refining capabilities to minimise the outflow of foreign exchange (forex) currently incurred by sending the precious metal to overseas facilities. In making the call, Datuk Seri Louis Ng, executive chairman of Public Gold Marketing Sdn Bhd, emphasised that increasing local gold refining capacity would help reduce costs for retailers and retain more value within the domestic economy.

According to BERNAMA News Agency, Ng, who is also president of the Malaysia Gold Association (MGA), stated that expanding local gold refining capabilities could strengthen Malaysia’s position in the regional gold supply chain. During an exclusive interview with Bernama, Ng highlighted that scrap gold in Malaysia, typically with a purity of around 91 percent, is currently sent overseas for refining to achieve 99.99 percent purity. This process incurs additional costs, including refining fees and gold processing losses.

Ng explained that refining gold locally would not only reduce the outflow of foreign exchange but also potentially attract foreign retailers to import gold refined in Malaysia. He mentioned that MGA supports this initiative by connecting members interested in investing in refining facilities, aiming to persuade the government to mandate local refining, akin to the policy already implemented in Indonesia.

Several local gold refining facilities are already operational, including one in Batu Kawan, Penang, and another in the Klang Valley. On the mining front, gold deposits are being actively explored and extracted in regions such as Selinsing in Pahang, Tawau in Sabah, and Kota Bharu in Kelantan.

Public Gold, established in 2008, currently serves around two million customers, mostly middle-income earners, and operates 18 branches nationwide, along with approximately 100 automated teller machines.