World Jewellery Position of Malaysia

Malaysia jewellery is one of the few amongst the world that preserve its status as being a
low-key posture in the international jewellery trade. In 2016, Malaysia was ranked 13 th in
the world that contribute to 1.7% of total jewellery export, standing much behind China
(19.1%) and Switzerland (11.3%,). Apart from that, Malaysia posted 7% decline in their
exported jewellery sales as compared to 2015 (refer to appendix 1).

Jewellery Companies and Competitors in Malaysia

In the past, Malaysias jewellery manufacturing and trade owned by a small-scale family
businesses. Different in today world, many enterpreneur have started to penetrate into
luxury retail outlets. Approximately 85% of the golds and jewellery export come from
Penang. Most of the gold comes from Pahang, Pahang, Kelantan and Terengganu. The
main gold jewellery suppliers in Malaysia which include Tomei Group, Poh Kong
Holding Berhad, DeGem and Habib Jewels have been progressing steadily in the industry
by attracting the customers through their exquisite and world-class designs. These
companies have invested on advance technology to improve the quality of jewellery.
However, there is a growing concern on the ability of Malaysian company to compete
domestically and internationally due the other established rivals from China and India
that have been popular for their branded jewellery. Established well known jewellery
companies such as Amrapali Jewels (India), Buckley Jewellery Ltd (United Kingdom)
and Fuqi International (China) represent the major key players in the worldwide jewellery
market trade can directly affect the Malaysia export of jewellery (refer to appendix 2).

The Federation of Goldsmith and Jewellers Association of Malaysia

The Federation of Goldsmith and Jewellers Association of Malaysia had been set up to
standardized retail price for the jewellery and to give advice to the Ministry of Domestic
Trade and Consumer Affairs for the implementation of policy (e.g, Hallmaking policy)
that will affect the trade of jewellery. The president of the Federation, Ermin Seow Der
Ming stated that the Malaysia jewellery that is designed locally are famous due to the
intrinsic beauty which in line with the Malaysias rich mixed-ethnic culture. This pattern
of jewellery manufactured in Malaysia is distinct as compared to other countries. Three
big races in Malaysia: Malay, Chinese and Indian have contributed to the diversity in
jewellery designing. For Malay, they liked floral design while Chinese preferred
geometrical background. Meanwhile, the Indians had focused on intrinsic handy designs
on the products.

Policy that affect sales of Malaysias Jewellery

The establishement of Asean Economic Community (AEC) aims to integrate the

economy amongst the group of Association of Southeast Asian Nations (ASEAN).
Indirectly, it will have crucial impact on Malaysias jewellery trade as tariff will be
eliminated on goods that involved 10 member states in the group. Besides, Malaysian
jewellers also expressed difficulties to maintain the domestic jewellery sales due to the
government imposition of 6-percent general sales tax (GST). This implementation has an
adverse impact on jewellery companies cashflow and reduction in demand for gold and
jewellery.
References
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Mehta, M. (2014). Hong Kong Jewellery. Retrieved from Malaysia aspires to become a
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Sharma, A. (2013, November 19). Jewellery Arabia 2013. Malaysia's gems industry
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The Gold & Jewellery Industry in Penang. (2006, January). pp. Volume 8, Issue 1.
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http://www.hkjm.com.hk/details.php?lang=eng&id=123

(Workman, 2016)

http://www.worldstopexports.com/jewelry-exports-country/

(Malaysia Report, 2014)

http://www.tnjtv.com/Issues/Int/V9_I3/V9_I3.html

(Vijian, 2013)

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http://www.gulf-daily-news.com/source/XXXVI/244/pdf/page21.pdf

Appendix 1

Appendix 2