Poh Kong mulls selling gold for investment

KUALA LUMPUR: Poh Kong Holdings Bhd is considering selling gold for investment as approved by the London Bullion Market Association  in anticipation that investments in precious metals (IPM) would be exempted from the Goods and Services (GST).

Executive director Siow Der Ming said currently Poh Kong is selling its locally produced 999.9 Bunga Raya gold bars.

"We are hoping the government will consider GST exemption for local IPM producers, or as an alternative, we might need to send the gold for refining at any of the 137 refineries registered with the association," he said.

Siow, who is also president of the Federation of Goldsmiths in Malaysia, was speaking to reporters after the company's annual general meeting here today.

On the industry outlook for this year, he noted that the domestic demand for gold and jewellery is still there as they are perceived as safe assets.

"Malaysians treat gold and jewellery as a form of investment and as accessories for daily use, and I believe they are no longer luxury items," he said.

The jewellery retail chain also plans to open another five stores with an estimated total capital expenditure of about RM16mil.

"Two of the outlets will open in April this year," he said, adding that Poh Kong's year-on-year revenue growth target stands at about 10%.

For the financial year ended July 31, 2014, Poh Kong Group's pre-tax profit declined 46% to RM21.87mil from RM46.57mil registered in 2013. - Bernama