Malaysia’s strong cultural ties to gold, combined with surging prices and shifting consumer preferences, have driven a steady rise in demand for gold in the country. The purchasing habits of Malaysians have been influenced by the deep-rooted cultural significance of gold, which serves as a trusted store of value for many families. It is not uncommon to see families purchasing gold for milestone events, financial security, and asset diversification. The shift in consumer preferences during the Covid-19 pandemic has also played a significant role in driving the demand for gold. Global economic disruptions and rising national debts prompted many to turn to gold as a hedge against inflation. Since January 2020, gold prices have surged by approximately 126%. In 2023 alone, prices increased by about 28%, and this year has seen even more dramatic growth, with a 31% rise recorded in just the first few months. Overall, prices have climbed about 44% since early 2024, making gold one of the most stable and high-performing assets in today’s financial climate. As younger Malaysians have become more inclined towards cryptocurrencies such as Bitcoin, there is now a growing shift in preference towards gold. This is due to the unique advantage of gold jewellery, which allows individuals to wear it and later sell it for a profit. In fact, during the pandemic, many Malaysians withdrew their EPF savings, but those who chose to invest in gold have since seen significant returns.
“Even with gold prices at record highs, public confidence remains strong. Despite my own caution that prices may have risen too fast, Malaysians continue to invest. Their confidence has even surpassed my expectations.” – Datuk Seri Meer Habib, Group Executive Chairman of Habib Jewels
- Physical gold remains a preferred investment option for many Malaysians, due to its sense of security and tangibility.
- Digital gold investments are gaining traction, but physical gold remains the most popular choice.
- Gold jewellery is an attractive option for many, as it allows individuals to wear it and later sell it for a profit.
- Malaysia’s mature gold ecosystem allows for easy trading and liquidation of gold.
“China and Russia are buying more gold as confidence in the US dollar drops,
especially after sanctions during the Russia-Ukraine war. “Recent US trade policies and political uncertainties have further accelerated this trend. In times of uncertainty, gold remains a reliable safe haven.” – Datuk Seri Meer Habib, Group Executive Chairman of Habib Jewels
Malaysia’s strong gold ecosystem has also given rise to innovative products such as collectible gold wafers, which are now widely adopted across the industry. Habib Jewels has introduced these wafers, which have become a hit among consumers. The brand is committed to promoting traditional Malaysian arts through limited edition 0.2-gram gold pieces, showcasing its focus on craftsmanship.
| Year | Traditional Malaysian Art |
| 2023 | The wau (traditional kite) |
| 2024 | The bunga raya (national flower) |
As the world becomes increasingly uncertain, gold remains a reliable safe haven for many investors.
In conclusion, the rise of gold as a safe-haven asset in Malaysia is driven by a combination of factors, including strong cultural ties, surging prices, and shifting consumer preferences. As the global economic climate continues to evolve, it is likely that gold will remain a popular investment option for many Malaysians.
