KUALA LUMPUR: Bank Muamalat Malaysia Bhd targets to sell about 320kg of Muamalat Gold-i (MGi) valued at about RM56mil for the financial year ending March 31, 2017 (FY17).
Chief operating officer (Business), Mashitah Osman, said MGi was the bank’s latest initiative to boost its wealth management segment which included takaful, investment and will writing.
“MGi is an alternative investment vehicle for the syariah-compliant distribution of physical gold bars to the public which are available in five, 10, 20, 50 and 100gm.
“Without any publicity, it sold over 80kg worth RM14mil since it was opened to the public two-and-a half months ago,” she told reporters at the MGi’s launch here yesterday.
Meanwhile, vice-president/head wealth management departmen, Nur Ain Ramli, said the bank expected the gold business to contribute about 60% of the total fee income for the wealth management segment for FY17.
She said since Jan 1, 2016 gold sales had contributed up to 40% of the fee income.
“In the next three years, it is targeted to contribute about 10 to 20% to total bank fee revenue.
“We are a bit different compared to other banks in terms of gold purchase process as we would ensure the availability of the physical gold during the transaction instead of presenting customers with paper gold,” Nur Ain said.
Customers could also opt to sell the gold at any time based on the daily updated price but to ease their transactions, they must first open a current or saving account with the bank.
“There is no limitation that it must be sold only at Bank Muamalat. They can also sell the gold at any jewellery trader or put it up at ArRahnu outlets for cash,” she said. – Bernama