Since early May, several shipments of gold bars to Malaysia have been suddenly imposed a 10 percent import duty. According to industry sources, this action has caused unexpected disruptions to the local gold bullion trade.
As a result of these additional costs, many gold cargoes have reportedly been stuck at customs or diverted to other destinations by traders. Without a corresponding increase in local gold prices, importing gold is now considered unprofitable for most industry players.
Bank Muamalat Malaysia Berhad confirmed that any 10 percent import tax charge imposed will be passed on directly to their customers. This means that gold investors may have to pay higher prices for their favorite gold investment products.
The Royal Malaysian Customs Department has announced that the Ministry of Finance will hold a discussion session with the industry regarding the issue of these gold products. However, local gold associations are still taking a silent approach and are refusing to provide any further comments.
Demand for gold in Malaysia is actually surging with the value of imports reaching 9.7 billion ringgit as of April this year. Although the world gold price is at a record high, the implementation of this new tax may temporarily dampen the investment appetite of the local community.
For the general reader, this policy indirectly makes gold assets a more challenging investment and requires larger capital. This price uncertainty is very important to monitor because it affects purchasing power and the long-term asset value of your retirement savings.
