PETALING JAYA: Jewellery company Poh Kong Holdings Bhd
(PKHB) remains upbeat about its prospects going forward, amid steady demand for gold on the back of stable household incomes.
Executive chairman and group managing director Datuk Choon Yee Seiong noted that gold has always been recognised as the “only true storehouse of value and riches.”
“As a result, families buy more gold as their financial situation improves. In 2024, research revealed that female investors have increased significantly,” he said in the group’s annual report.
Choon pointed out that the number of financial advisers, coaching websites, influencers, online communities and podcasts specifically targeting female investors has increased significantly.
“Some countries reported a rise of 67% in female investors in just one year. This is not surprising. Gold has been rated as a safe and value-enhancing investment.”
He added that the recent upward price trajectory in gold prices has also sparked renewed interest in gold investment.
“The higher price will enhance PKHB’s profit margin.
“We do not see a direct impact of inflation on our performance.”
Over the past 12 months, the price of gold has risen by more than 30%.
Separately, Choon highlighted that Budget 2025, announced in October, focuses on implementing reforms more decisively, eliminating bureaucratic red tape, increasing wages and income, and addressing the cost of living.”
“These focus areas were strung thematically together as the clarion call of the Madani government,” he said.
Choong pointed out that the government had taken decisive measures to stabilise and increase household income and the well-being of the people.
“With increased household incomes, demand for gold and gold products is expected to rise,” he stressed.
People’s aspirational goal of securing long-term stable investments to hedge against inflation and deflation is well-established, he said.
Additionally, Choon noted that the International Monetary Fund forecasted Malaysia to remain resilient this year and through 2025.
“Increased consumer spending will fuel this growth, driven by withdrawals from the Employees Provident Fund’s Akaun Fleksibel and heightened government expenditure. PKHB is encouraged by this trend,” he added.
However, despite the positive economic outlook, Choon said PKHB remains cautious as global economic headwinds are expected to persist, influenced by US economic performance and interest rates, as well as regional issues, particularly the pace of growth in China.
He emphasised that the strong and sustained economic momentum in the first half of 2024 provided a clear indication of Malaysia’s economic recovery.
“Stronger and more dynamic trade activities will certainly translate into a greater demand for gold and gold products,” Choong explained.
He also noted that the ringgit had been performing well, partly due to the government’s encouragement of government-linked companies to repatriate earnings. “PKHB is taking full cognisance of all socio-economic indicators and is planning for a successful year ahead,” he said.
