Malaysia abolishes import duty on minted gold bars from Nov 1

PUTRAJAYA, 4 OCTOBER 2026 —

Malaysia has formally gazetted the abolition of the 10% import duty on qualifying minted gold bars, a policy shift effective from November 1 that aims to lower acquisition costs for consumers and bolster the competitiveness of the local gold and jewellery industry.

The decision follows sustained representations from key business bodies, including the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCIM) and the Federation of Goldsmiths and Jewellers Associations of Malaysia (FGJAM). In a joint statement released on Saturday, the groups described the removal of the duty as a “timely and practical” measure.

They noted that the change aligns Malaysia’s treatment of investment-grade minted gold bars with several major regional and international markets, specifically citing Thailand, Singapore, Hong Kong, and the United States, where such products are not subject to import duties. By eliminating this cost barrier, the government seeks to help Malaysian businesses compete more effectively in the broader regional gold market.

ACCIM president Datuk Ng Yih Pyng emphasized that the removal of the import duty will directly assist in removing acquisition costs for both businesses and consumers. He highlighted that this benefit is particularly relevant for small-denomination minted gold bars, which are commonly purchased for long-term savings and wealth preservation. Ng expressed gratitude to the Ministry of Finance and the Royal Malaysian Customs Department for responding to the industry's concerns.

He stated that the decision “demonstrates the value of constructive public-private engagement and provides meaningful support to both businesses and consumers.”

FGJAM president Pang Ann Puo provided further context on the consumer behavior driving this policy change. He observed that small gold bars are increasingly being used by consumers as an accessible form of savings and wealth preservation. According to Pang, products in denominations such as 1g, 2g, 2.5g, 5g, 10g, 20g, and 50g are commonly purchased, allowing individuals to accumulate gold according to their specific financial capacity.

He argued that scrapping the import duty should improve affordability, particularly for buyers of these smaller bars, and could encourage more disciplined long-term saving while giving consumers more choice in managing their savings and investments.

The popularity of these small-denomination bars has grown significantly among specific demographic groups. Pang noted that minted gold bars ranging from 1g to 50g have become increasingly popular among young working adults as well as B40 and M40 households. For these groups, gold serves as an accessible means of saving and preserving wealth in an environment where other investment options may be less accessible or carry higher barriers to entry.

The exemption is expected to help reduce import costs, which in turn should support more reasonable retail prices and promote the growth of the local gold retail market.

Datuk Ng Yih Pyng played a pivotal role in bringing the industry’s concerns to the attention of the government. Through ACCIM, he led a delegation of goldsmiths for discussions with the Finance Ministry regarding the impact of the import duty on minted gold bars. This direct engagement between industry leaders and policymakers was instrumental in shaping the final decision.

The joint statement from ACCIM and FGJAM indicated that the two groups would continue working with the government and relevant agencies to promote "practical, fair and business-friendly policies that strengthen the industry, support consumers and enhance Malaysia’s position as a competitive regional gold market."

The broader implications of this policy extend beyond immediate consumer savings to the structural health of the local gold industry. Datuk Abdul Rasul Abdul Razak, president of the Malaysian Indian Goldsmith and Jewellers Association, commended the government’s decision, describing the exemption as a considerate step. He highlighted that the move would help make gold more affordable for middle- and lower-income groups who rely on small gold purchases for future savings.

Abdul Rasul stressed that the interests of these groups should be safeguarded closely by the government, noting that the little they save will go a long way for their future financial security.

Abdul Rasul also pointed to the historical success of the local gold industry, which has flourished over the years through sales to both locals and foreigners. He attributed part of this success to the existing exemption of consumption taxes. He warned that additional taxes would affect not only consumers but also the livelihoods of about 45,000 goldsmiths operating within the country.

This figure underscores the significant employment impact of the gold sector, suggesting that the removal of the import duty is also a measure to protect jobs and sustain a vibrant retail ecosystem.

Despite the positive reception, industry leaders have urged caution regarding the implementation phase. Pang Ann Puo advised industry members to take note of any subsequent implementation guidelines, tariff classifications, and declaration requirements issued by the Finance Ministry and the Customs Department. He emphasized that all relevant business activities must continue to comply with prevailing laws and regulations until the exemption is officially implemented.

This directive ensures that the transition to the new duty-free status is managed smoothly and in accordance with legal frameworks.

The alignment with international markets is a key strategic benefit of this policy. By bringing Malaysia’s treatment of investment-grade minted gold bars in line with Thailand, Singapore, Hong Kong, and the United States, the country positions itself more favorably in the global gold trade. This parity is expected to attract more cross-border trade and investment, further integrating Malaysia into the regional gold supply chain.

The removal of the 10% duty removes a significant cost disadvantage that Malaysian traders previously faced when competing with their neighbors.

The policy change is set to take effect on November 1, providing a clear timeline for businesses and consumers to adjust their planning. The Customs Duties (Amendment) Order 2026 serves as the legal instrument for this change, ensuring that the reduction in duty is formalized and enforceable. The joint statement from ACCIM and FGJAM welcomed the move, signaling a unified front among the major industry associations in support of the government’s decision.

The decision reflects a broader trend of governments seeking to stimulate economic activity by reducing trade barriers on specific commodities. In the case of gold, the focus on small-denomination bars highlights the importance of retail access and financial inclusion. By making gold more affordable, the government is not only supporting the industry but also encouraging a culture of saving among the population. This dual benefit supports both economic growth and social stability.

As the implementation date approaches, the focus will shift to the practical aspects of the new regime. The Finance Ministry and the Customs Department are expected to issue detailed guidelines to ensure that the transition is seamless. Industry participants will need to update their systems and processes to reflect the new duty rates. The success of this policy will depend on effective communication and compliance, ensuring that the intended benefits reach both businesses and consumers.

The removal of the import duty on minted gold bars is a significant step for Malaysia’s gold industry. It addresses a long-standing concern of the sector and aligns the country with international best practices. The positive response from industry leaders suggests that the policy is likely to be well-received and effective in achieving its goals.

As the gold market continues to evolve, such measures will be crucial in maintaining Malaysia’s position as a key player in the regional gold trade.

The story of Malaysia’s gold industry is one of resilience and adaptation. The removal of the import duty is the latest example of the government working with the private sector to address challenges and seize opportunities. By supporting the gold and jewellery industry, the government is also supporting the livelihoods of thousands of workers and the financial well-being of millions of consumers.

This holistic approach to policy-making is likely to yield long-term benefits for the country’s economy.

In conclusion, the abolition of the import duty on minted gold bars is a well-timed and strategic move. It responds to the needs of the industry and the preferences of consumers, while also enhancing Malaysia’s competitiveness in the regional market. The collaboration between the government and industry bodies has resulted in a policy that is both practical and beneficial.

As the new rules take effect, the gold industry is poised for a period of growth and stability, driven by lower costs and increased consumer confidence.

Related: Ministry of Finance · Datuk Ng Yih Pyng