Malaysian jewellery exports are inching along; recording average growth rate of 1.7 per cent per annum exports notched Malaysian Ringgit 7,164 million. Counterpoised to this minuscule sum is the domestic sale that must be at-least several times higher than this figure. Indeed prospects are brightening and things are looking up for Malaysian Jewellery business.
Exports are tip of the iceberg of the underlying potential capacity of Malaysian jewellery. It can out-beat and out-smart even Thailand which ranks at present the second largest fabricator of jewellery after India. Room for expansion in export is immense. Just look at the figures: out of total exports of Malaysian Ringgit (RM) 7 billion about 54% goes to Dubai, UAE. Singapore accounts for 20% while three countries, namely Thailand, Japan and Hong Kong take another 20%. Strangely China the giant amongst the BRIC countries is buying less than one per cent of the total exports. According to Malaysia External Trade Development Corporation (Matrade) exports to China is paltry around RM 100 million.
Fabrication of jewellery takes place in three centres: Penang, Johor Bahru and Kuala Lumpur. Penang is the jewel amongst these; traditional Chinese craftsmen turn out jewellery pieces reflecting conventional and contemporary designs. More than that, they are credited with churning out 80% of total jewellery manufacture in Malaysia. Besides, exporting major part of their manufacture Penang Jewellers retail their wares in and around Jalan Masjid Kapitan Keling, popularly dubbed as “gold bazaar”. Tourists from India and Indonesia rub shoulders with many other nationalities in gulping up multitude of products such as gold and silver jewellery, platinum jewellery among others.
Though no reliable figures are available as regards to the volume of domestic sale, it is guesstimated to be several times that of the export sum. In my thinking the sales quantum hovers around RM 60 billion. A population of 28 million living inside Malaysia and about 10 million tourists arriving at Kuala Lumpur annually this estimate sounds reasonable. Predictably, 75% of the jewellery sold is of plainer variety sans gems, diamonds or pearls. Moreover, mass market products hold sway in both lower and higher end of the market segments.
Quite a number of initiatives taken by the jewellery industry of Malaysia have placed Kuala Lumpur in the global map. The annual Malaysia International Jewellery Fair is recognised by the global giants in jewellery as a significant event and a trading hub. Coupled to this event is Malaysia Jewellery Design Award that seeks to bring out talents in pattern and design from the ever growing trained craftsmen. While pricing retail jewellery, labour charges per gram is kept lower compared to Thailand and Chinese fabricators. Value addition is seen in customization and in blending trendy styles with elegant ones. Both cast jewellery and crafted jewellery are given due recognition. Market positioning of the jewellery to up-market and luxury market is being resorted to by many large companies. To cap it all, jewellery as mark of lifestyle is emphasized in order to upgrade customer choice towards high-end products.
Business Opportunity
Inquiries are welcome from prospective jewellers, businessmen, buyers and investors who wish to start a new business or expand existing ones. Initially a feasibility report need be prepared taking into consideration of jewellery fabrication and marketing for both export as well as domestic market in Malaysia. When that is done it is easy to go ahead and get a piece of action in Malaysian Jewellery Hub that has potential to out-smart regional competitors in style and substance.
