Penang: Penang has the potential to emerge as a regional gold and jewellery trading hub by leveraging its strong manufacturing ecosystem, established retail sector, and growing global demand for alternative trading destinations amid current geopolitical and geo-economic uncertainties. Minister of Entrepreneur and Cooperatives Development Steven Sim Chee Keong highlighted that the state, which accounts for about 70 percent of Malaysia's jewellery manufacturing capacity, is well-positioned to play a significant role in the regional gold trade and value creation economy.
According to BERNAMA News Agency, Sim emphasized that global buyers in Dubai and sellers in India are increasingly seeking alternative locations for trading activities following the tariff war and the United States-Iran conflict. He noted that Penang, with its established traditional jewellery-making sector and retail sector, could serve as an alternative to major trading hubs. Sim proposed that Penang could become a 'Dubai+1' in the retail and services sectors, providing a viable option for global buyers unable to travel to Dubai.
Sim, who is also the Bukit Mertajam Member of Parliament, stated that the proposed Penang Gold Hub is part of the broader 'Penang 3.0' agenda. This initiative aims to transform the state from a low-cost manufacturing economy into a value-creation economy driven by local expertise and businesses. He emphasized the importance of capitalizing on one of Penang's oldest trades, the gold and jewellery sector, which has a 200-year history in the state.
Discussions on the proposed hub are being refined through a working paper to be submitted to Penang Chief Minister Chow Kon Yeow, following engagements with industry players and business leaders. Sim explained that the hub could integrate the entire gold and jewellery ecosystem, including refining, design, manufacturing, retail, and storage services.
The Penang 3.0 initiative represents a shift from the 'Made in Penang' economic model to a 'Made by Penang' model, focusing on value creation by local businesses to ensure the state's long-term economic competitiveness and sustainability over the next 50 years. In support of this vision, Sim announced a RM10,000 contribution to the Province Wellesley Gold and Silver Ornament Merchants Association (PWGS), the organizer of the Malaysia Gold and Jewellery Trade Exhibition (MGJE) 2026.
The three-day exhibition, which starts today, is expected to generate about RM100 million in sales, primarily benefiting small and medium enterprises (SMEs) in the gold and jewellery sector.