Penang has what it takes to emerge as a regional gold and jewellery trading hub, drawing on its strong manufacturing base, established retail sector and shifting global demand as buyers seek alternatives amid geopolitical uncertainty, says Minister of Entrepreneur and Cooperatives Development Steven Sim Chee Keong.
The state accounts for about 70% of Malaysia’s jewellery manufacturing capacity, positioning it well for a larger role in the regional gold trade and value creation economy, he said.
Speaking at the opening of the Malaysia Gold and Jewellery Trade Exhibition (MGJE) 2026 at Setia Spice Convention Centre on Friday, Sim noted that global buyers in Dubai and sellers in India are increasingly looking for alternative locations for trading activities in the wake of the tariff war and the United States-Iran conflict.
“Here in Penang, we have both an established traditional jewellery-making sector and a retail sector. Basically, Penang is both India and Dubai,” he said.
“In the manufacturing sector, we have US+1 China+1, in retail and services, why can’t we be Dubai+1? If global buyers cannot fly to Dubai, then why not come to Penang?”
Sim, who is also the Bukit Mertajam Member of Parliament, said the proposed Penang Gold Hub is part of the broader “Penang 3.0” agenda aimed at transforming the state from a low-cost manufacturing economy into a value-creation economy driven by local expertise and businesses.
“If Penang 3.0 is driven by value, then we should not miss the opportunity of one of our oldest trades here in Penang, the gold and jewellery sector, a 200-year-old business,” he said.
Discussions on the proposed hub are currently being refined through a working paper to be submitted to Penang Chief Minister Chow Kon Yeow following engagements with industry players and business leaders, according to Sim.
He said the proposed hub could integrate the entire gold and jewellery ecosystem, including gold refining, design, manufacturing, retail and storage services.
Sim pointed out that the Penang 3.0 initiative represents a shift from the “Made in Penang” economic model to a “Made by Penang” model by focusing on value creation by local businesses to ensure the state’s long-term economic competitiveness and sustainability over the next 50 years.
Earlier, he announced a RM10,000 contribution to the Province Wellesley Gold and Silver Ornament Merchants Association (PWGS) as the organiser of the MGJE 2026.
The three-day exhibition, which opened on Friday, is expected to generate about RM100 million in sales, mainly benefiting small and medium enterprises in the gold and jewellery sector.
Source: The Edge Malaysia
