Secret Bargains in Small-Town Malaysia

When traveling to Negeri Sembilan for the state election, journalist expected stories about politics and campaigns. Instead, they found a secret bargain for gold jewellery in two small Malaysian towns: Kuala Pilah and Port Dickson.

The reason behind the lower prices is not due to cheaper gold but rather the economics of running a business in smaller towns. Lower operating costs, simpler designs, and keen competition for a limited pool of customers all contribute to the affordability of gold jewellery.

Ng Yih Pyng, adviser to the Federation of Goldsmiths and Jewellers Association of Malaysia, said that the industry association does not set retail prices. Instead, it is a free market where prices can vary due to factors such as product mix, operating costs, workmanship, design, and competition.

A comparison of gold prices on August 14 showed that 916 gold was selling for RM520-RM525 per gram in Port Dickson, compared to RM534-RM553 in Kuala Pilah. In Kuala Lumpur, major jewellery chains were selling it at about RM630 per gram, but one Masjid India jeweller offered it at RM544.

The quoted rates do not include workmanship charges, which can vary depending on the store and design complexity. Buyers should compare the final price and check the purity and weight of the gold, as well as the shop's buy-back terms.