Penang has the potential to establish itself as a major gold trading hub in the ASEAN region, according to Steven Sim, Malaysia’s Minister of Entrepreneur and Cooperatives Development. Speaking at the launch of the RM30 million Public Gold Refinery Centre in Batu Kawan on Tuesday, Sim highlighted the state’s rich history in gold manufacturing, which spans approximately 200 years.

Penang currently accounts for around 70% of Malaysia’s gold jewellery production and ranks among the world’s top 15 exporters in this sector. Sim emphasized that the state’s established manufacturing base positions it well to meet increasing regional demand for gold, particularly as buyers and sellers seek alternative locations amid global geopolitical uncertainties.

“Gold buyers and sellers are looking for alternative locations, and Penang, with its traditional and established manufacturing industry, has the potential to become a gold bazaar in the region,” Sim said. He drew comparisons to well-known gold trading centres such as Dubai and India, suggesting Penang could become a complementary “plus one” option for the industry.

Sim also discussed the possibility of building a broader gold ecosystem in Penang that could integrate financial products based on gold, further enhancing the state’s economic diversification. He said these ideas have been explored in discussions with Penang Chief Minister Chow Kon Yeow and stakeholders from the jewellery sector.

Looking ahead, the government envisions the development of a comprehensive gold bazaar complemented by storage facilities in Penang, which would receive support from both state and federal authorities. This strategic initiative aims to reinforce Penang’s position as a key player in the regional gold market, leveraging its historical expertise and infrastructure.