Dr M: Malaysia needs proper gold trade rules to curb illegal profit taking

KUALA LUMPUR: There is a need for proper regulations enacted to govern gold trading in Malaysia to curb illegal profit-taking by unscrupulous parties, Tun Dr Mahathir Mohamad said.

The former prime minister said on Monday regulations for gold trading were important as it was traded in high value.

"This is very important as we need to buy and keep gold as gold appreciates in value," he told reporters on the sidelines of the Third Annual World Conference on Riba (usury).

Dr Mahathir said gold trading firm, Genneva Malaysia Sdn Bhd, should be investigated thoroughly on the firm's trading activities.

Genneva Malaysia was among four gold trading companies raided by the authorities, including Bank Negara Malaysia, on suspected offences like illegal deposit-taking, money laundering and tax evasion.

Other gold trading companies raided were Pageantry Gold Bhd, Caesar Gold Sdn Bhd and Worldwide Far East Bhd.

Dr Mahathir said Genneva should be investigated to find out exactly what they did that was wrong.

Asked whether the decision to investigate gold trading companies for suspected offences would cause a backlash to the government, Dr Mahathir said:

"I feel that we should circumspect when taking a decision without fully appreciating the problem. Must investigate first."

The two-day conference, which started today, will set the stage for an indepth and comprehensive deliberations on Riba and its links to continued global recession, hyper-inflation and social unrest.

Themed "The Multifaceted Global Crisis on Riba: Resilience, Response and Reform", the two-day conference has gathered about 300 scholars, corporate and industry leaders, policymakers, regulators, the public and students.

It was organised by Thinkers Trends Resources while the co-organisers are International Islamic University Malaysia's Institute of Islamic Banking and Finance and Al Ghazzali Centre for Islamic Sciences and Human Development. - Bernama