PENANG can be a regional hub for gold and jewellery by leveraging its strong manufacturing ecosystem as well as growing global demand for alternative trading destinations amid geopolitical uncertainties.
Entrepreneur Development and Cooperatives Minister Steven Sim said the state, which accounted for about 70% of Malaysia’s jewellery manufacturing capacity, was well-positioned to play a bigger role in the regional gold trade.
He said due to global tariff wars and geopolitical conflicts, international buyers were increasingly seeking alternative trading locations.
“In Penang, we have both an established traditional jewellery-making sector and a retail sector. In manufacturing, we have ‘US Plus One’ and ‘China Plus One’ strategies.
“For retail and services, why can’t we be ‘Dubai Plus One? If global buyers cannot fly to Dubai, then why not come to Penang?” he during the opening of the Malaysia Gold and Jewellery Trade Exhibition (MGJE) 2026 at the Setia SPICE Convention Centre.
Sim, who is also Bukit Mertajam MP, said the proposed Penang Gold Hub aligned with the ‘Penang 3.0’ agenda, which aimed to shift the state from a “Made in Penang” low-cost manufacturing model to a value-creation economy driven by local expertise.
“If Penang 3.0 is driven by value, then we should not miss the opportunity of one of our oldest trades here – the gold and jewellery sector, a 200-year-old business,” he said in a Bernama report.
Sim said that discussions on the proposed hub were currently being refined through a working paper, to be submitted to Penang Chief Minister Chow Kon Yeow following engagements with industry players.
He said the hub could integrate the entire ecosystem, including gold refining, design, manufacturing, retail and storage services.
Sim also announced a RM10,000 contribution to the Province Wellesley Gold and Silver Ornament Merchants Association (PWGS), the organiser of MGJE 2026.
The three-day exhibition was expected to generate RM100mil in sales, primarily benefitting small and medium enterprises.
