FOCUS 焦点 JNA September/October 2024 | 23 developed its own production facilities to cope with shipment restrictions during the Covid years, the company official noted. “Our deliveries to the Middle East have not returned to pre-pandemic levels but they are picking up slowly now. Singapore and other export markets are doing well though,” Teoh continued. Wide market The Middle East is likewise the main export destination of CHL Innovation Industries. The company also caters to wholesalers in Australia, Singapore, the Philippines and other Asian markets. According to company marketing manager Goay Boon Pah, 22-karat gold is favoured in the Middle East and Singapore, while Australia and the Philippines both lean to 21-karat and 22-karat items. Europe, meanwhile, prefers jewellery in 14-karat and 18-karat gold. “Given the high gold prices, customer standards for design, quality and finishing have risen as well. Their main concern is getting the value they paid for; they will only buy what they really want,” he disclosed. Singapore is a steady and reliable source of orders for Malaysian manufacturers, he continued. While Singaporean companies also produce gold jewellery, their overhead costs are a lot higher than their Malaysian counterparts. “It is often worth it for them to import gold jewellery instead of producing it themselves or in their overseas manufacturing facilities. This frees them from shouldering high labour and operational costs,” Goay explained. Heritage pieces Over in the Philippines, the focus is on 14-karat and 18-karat gold. Much of the country’s jewellery production is centred in the city of Meycauayan in the province of Bulacan. The industry there produces both gold and silver jewellery and is home to the country’s leading goldsmiths and craftsmen. Southeast Asia is also a giant on the gold jewellery manufacturing front, Siow noted. Data from Metal Focus showed Malaysia leading the pack, producing 30.3mt worth of gold jewellery in 2023. Indonesia came in second with 26.8mt, while Thailand recorded 23.3mt. Vietnam followed with 16mt, with Singapore ranking fifth with 3.8mt. “Malaysia exports more gold jewellery than it consumes locally. Its production is mainly in 22-karat gold, and its shipments almost double that of local consumption,” Siow revealed. Thailand, meanwhile, exports less than its local demand as its jewellery production is largely in 23-karat gold. “Thailand is probably the only country in the world where their most popular gold category is 23 karats, unlike the Middle East, Singapore and Malaysia where 22 karats is the preferred category,” Siow said. Steady demand Despite high gold prices, demand for gold jewellery in Southeast Asia has remained robust. Siow told JNA that many jewellers in Malaysia and Singapore enjoyed strong – in some cases, even record-breaking – sales during Chinese New Year in 2024. “I noticed that high gold prices do not affect the consumers’ intent to purchase. It does not deter them from buying, though they may choose lighter items. To them, gold jewellery is an investment that they can actually enjoy wearing and can sell if needed,” he explained. Moreover, the fascination with gold has extended to younger buyers in the region. And unlike older generations that traditionally seek better deals, these consumers readily purchase jewellery pieces that appeal to them. Siow disclosed, “In the past, younger consumers viewed gold jewellery as old-fashioned. This has changed since the pandemic. They are now buying gold rings, pendants and chains. Young people go to jewellery stores, pick out what they like and make a purchase. This is a trend that is likely to continue moving forward.” Regional prowess Most Southeast Asian countries have developed their own special expertise in gold jewellery manufacturing. Malaysia’s jewellery industry specialises in plain gold jewellery in a variety of styles, catering to local retailers and wholesalers with 22-karat gold items as well as strong demand from international markets, primarily in Asia and the Middle East, with other gold categories. Penang-based G2 Gold Sdn Bhd tailors its gold jewellery designs to the needs of its export markets. The company works with buyers from the UAE, Singapore, Hong Kong and the Philippines, among others. “Our production for the international market is in 14-karat, 18-karat, 21-karat and 22-karat gold. Middle East countries generally seek gold jewellery in 18 karats or 21 karats. But we only focus on plain gold jewellery, those without gemstones or diamonds,” said G2 Global’s SW Teoh. Demand from the UAE, however, dipped after the pandemic, as the market sought other sources and
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