KUALA LUMPUR: Poh Kong Holdings Bhd
expects gold prices to climb higher to the US$2,005 - US$2,050 per troy ounce range in 2024 amidst expectations on the United States (US) Federal Reserve's interest rate cuts, ongoing geopolitical issues in the Middle East and the complex US-China relations.
Director Ermin Siow Der Ming said although gold prices have practically hit an all-time high of around US$2,000 per troy ounce now, given the current development in the world, the company is bullish moving forward.
"If prices continue to rise, we should see better financial results (for the financial year ending July 31, 2024) compared with last financial year's result, provided that the economy continues to stay strong and the political scenario continues to remain sustainable," he told a virtual media briefing after the company's annual general meeting here today.
According to Poh Kong’s filing with Bursa Malaysia on Sept 26, 2023, the jeweller’s net profit fell to RM77.74 million in FY2023 from RM92.19 million a year ago on the lack of demand for gold products due to weak market sentiment, and a rise in operating expenses.
Meanwhile, Siow said the group and industry players have been in talks with the government regarding the implementation of the high-value goods tax (HVGT) on gold products.
"After so many dialogue sessions with the government through the Royal Malaysian Customs Department and the Finance Ministry, nothing has been finalised yet. We are still waiting to see what is their final decision regarding this tax," he said.
In Budget 2024, the government said it will draft new legislation to implement a HVGT at a rate of five to 10 per cent on items such as jewellery and watches based on the goods’ threshold value. - Bernama
