Establish a Jewelry Company in Malaysia

Updated on Wednesday 28th November 2018

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The market trends registered in 2017 for the jewelry sector in Malaysia show that the domestic businesses lead the sales in the field, but several international jewelry businesses are also present on the local market and the consumers have a high level of confidence in the products sold by reputable international companies
 
Businessmen who want to open a company in Malaysia in the jewelry sector must know that, in the last years, internet businesses have increased in popularity, and more and more local customers are willing to purchase jewelry products from various online websites as their consumers services policies benefit from a high level of trust. Our team of specialists in company registration in Malaysia can assist local and foreign businessmen with advice on the documents required when registering a website here.  

Regardless if the investors will prefer to start a jewelry company as an online business or a traditional business (brick-and-mortar), they will first need to decide on the legal entity of the company. Most of the businesses set up in Malaysia are registered as limited liability companies, but other business forms can be selected. When referring to limited companies, Malaysia also provides the limited liability partnership, which represents a combination between the characteristics of a limited company with the ones of the partnership

Most of the local businesses will also need to obtain a type of license. All businesses that perform the procedure of company incorporation in Malaysia will receive general licenses, which include various types of documents that must be obtained when setting up a business, such as the business premises license. After this, the company may need to obtain industry specific licenses; in the case of jewelry businesses operating in the manufacturing sector, it will be necessary to obtain a manufacturing license. Please note that businesses trading gold in Malaysia do not have to obtain an import-export license. 

 

Why invest in the gold jewelry sector in Malaysia? 
 

One of the ways to enter the jewelry sector in Malaysia is by opening a company that has its business activities related to gold manufacturing or trade, as this field is of high relevance for this industry (being the most developed sub-sector). The manufacturing of gold jewelry products in Malaysia can meet the needs of the local consumer market and a wide category of products are also traded on international markets. 
 
Although prior to 1990s, the jewelry manufacturers created their products only to be sold on the local market, the country changed its policies and nowadays it is one of the most important producers and exporters of gold jewelry products at a global level. Our team of consultants in company formation in Malaysia can provide in-depth information regarding the import-export regulations that are addressed to this industry. Some of the main reasons which led to the expansion of this market are presented below: 
  • the government policies that were created to sustain the country’s economic development;
  • the introduction of new technologies for the manufacturing process of jewelry products;
  • the variety of gold jewelry designs, which is rooted in the country’s diversified ethnic population (Malay, Chinese, the influence of the Islam culture);
  • the country is now one of the leading exporters of gold jewelry products for Middle East countries and China;
  • Malaysia has strong trading relations with countries such as Singapore, Hong Kong or the United States of America.  
     

What are the characteristics of the Malaysian gold market? 
 

Malaysia has 14 gold mines scattered across its territory. However, most of the Malaysian gold is obtained from the region of Pahang, which accounts for approximately 74% of the entire gold production. The gold industry in Malaysia is developed by involving foreign companies operating as refining plants, since this process is not developed here. 
 
It is important to know that the Malaysian gold jewelry production is also based on imports of gold, which is generally brought from countries such as Switzerland, Turkey, Japan and the United States of America; the annual gold imports account for minimum 77 tons and our team of consultants in company formation in Malaysia can assist with legal advice on the procedures that are applicable in this situation.  
 

What are the traits of the Malaysian manufacturing companies? 
 

When opening a company in Malaysia in the field of gold jewelry manufacturing, foreign businessmen are advised to study the characteristics of the local competitors. In this sense, it is necessary to know that the country has approximately 200 manufacturing factories situated in the region of Penang
 
Such companies are usually set up as small businesses, which are specialized only in providing 100% gold jewelry products, without any additional materials. As a general rule, these companies employ personnel that has a high level of skills and the machinery used are also of high quality. 
 

What are the main types of jewelry products requested in Malaysia? 
 

As mentioned above, most of the local jewelry businesses concentrate their operations in creating 100% gold products, without using gemstones and other similar materials. This is due to the fact that the local population generally prefers to wear plain gold products, even though there are several trends in this sense, given by the ethnics groups living here. 
 
For example, Malaysian nationals prefer to wear 100% gold products (necklaces, rings) with flowers and motifs inspired by plants. Malaysian persons with an Indian background prefer jewelry products that are inspired by the Indian traditional motifs, while the Chinese ethnic group will generally prefer to purchase gold necklaces. Investors who are interested in opening a jewelry business are invited to contact our team of representatives in company registration in Malaysia for in-depth information regarding the incorporation requirements available in this case.