Arya News - Entrepreneur and Cooperatives Development Minister Steven Sim said Penang`s established gold manufacturing base, coupled with its strategic location, could allow the state to attract buyers and sellers looking for alternative locations.
BATU KAWAN – Penang has the potential to become a gold bazaar for the Asean region, leveraging its long-established manufacturing industry and growing financial ecosystem, says Entrepreneur and Cooperatives Development Minister Steven Sim.
He said the state was well positioned to capitalise on growing demand for gold and the search for alternative locations amid current geopolitical uncertainties.
Sim said Penang’s established gold manufacturing base, coupled with its strategic location, could allow the state to attract buyers and sellers looking for alternative locations.
“I believe there is nothing stopping Penang from becoming ‘Dubai plus one’ or ‘India plus one’,” he said at the official launch of the Public Gold Refinery Centre here on Tuesday (Sept 15).
“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 Penang’s gold industry, with a history spanning about 200 years, was a strong foundation upon which the state could develop a broader ecosystem.
“Malaysia is among the world’s leading exporters of gold jewellery, easily within the top 15 globally, while Penang contributes about 70% of the country’s manufacturing and production.
“I believe it makes perfect sense to regard gold as one of the key components of our financial products,” he said.
Sim said he had discussed the matter with Chief Minister Chow Kon Yeow,and representatives of the jewellery industry on developing the state’s gold industry into a comprehensive ecosystem.
Sim said the launch of the RM30mil refinery marked an important step towards establishing such an ecosystem.
He said the long-term vision could include establishing a gold bazaar and storage facilities in Penang, with support from both the state and Federal governments.
Sim said the initiative should be viewed as part of a broader effort to unlock Penang’s existing wealth, while attracting new capital to finance development for years to come.
Present during the launch were Chow and Public Gold founder and executive chairman Datuk Seri Louis Ng.
Chow said in his speech that the refinery’s launch marks an important milestone not only for Public Gold, but also for Penang and Malaysia’s growing precious metals industry.
“As the first international-standard refinery in Malaysia, this facility represents an important step forward in our ambition to attract high-value investments and build new areas of industrial strength,” he said in his speech.
Chow said the investment is particularly important to Penang as it continues to focus on attracting high-value investments, developing skilled talent, and strengthening its manufacturing and industrial ecosystem.
Seated on a 0.46ha (1.14 acres) site within the Batu Kawan Industrial Park with a built-up area of approximately 43,472sq ft, the refinery is designed to refine up to 10 tonnes of precious metals annually, with the capacity to expand to 20 tonnes per year as market demand grows.
It is capable of refining precious metals from both primary and secondary sources, strengthening Malaysia’s refining capabilities while serving customers across local and international markets.