PRECIOUS METALS | Malaysia Imposes 10% Import Duty on Gold Bars, Disrupting Trade

Malaysia has imposed a 10% import duty on certain gold bars, causing disruptions in the country's gold trade, according to foreign media reports. Traders and dealers have indicated that since at least early May, some imported gold shipments have been subject to this duty. The additional cost, without a corresponding increase in local gold prices, renders imports unprofitable, leading to some shipments being held at customs or redirected to other regions. Malaysia's Muamalat Bank, which offers gold investment products, stated this week that the cost will be passed on to customers as long as the 10% tax is applied to gold imports. A spokesperson for Malaysia's Royal Customs Department mentioned that the Ministry of Finance will engage with the industry regarding the import of 'minted gold products.' According to Malaysia's Department of Statistics, the country imported approximately 9.7 billion ringgit ($2.5 billion) worth of non-monetary gold up to April this year.