KUALA LUMPUR, Feb 4 (Bernama) -- Malaysia must strengthen and optimise its gold resource management by establishing a holistic and comprehensive National Gold Industry Management Framework.
Citing data from the World Bureau of Metal Statistics – London Stock Exchange Group, Paya Besar Member of Parliament (MP) Datuk Mohd Shahar Abdullah said Malaysia currently accounts for just 0.06 per cent of the 3,000-tonnes global gold production, with annual output ranging between 1.8 and 4.6 metric tonnes.
However, Mohd Shahar, who is also the chairman of the Parliamentary Special Select Committee on Finance and Economy, noted that gold resource management remains fragmented, being under the jurisdiction of the states through their respective State Mineral Enactments.
“Does the coordination mechanism between the federal government, state governments, and concession companies ensure that royalties (which are typically 5.0-10 per cent) and tax revenues reflect the true value of exported gold?
“The 2019 National Audit Report highlighted inconsistencies in royalty rates across states, potentially leading to revenue leakage. Does the government plan to standardise mining contracts at the national level?” he asked while debating the Motion of Thanks on the Royal Address in the Dewan Rakyat today.
Citing a 2021 study by the Department of Minerals and Geoscience Malaysia, Mohd Shahar said the country’s metallic minerals, including gold, are estimated to be worth RM1.03 trillion.
“High-value minerals are concentrated in four main gold belts: the Central Belt (Pahang and Terengganu), the Eastern Belt (Kelantan), the Borneo Belt (Sabah and Sarawak), and the Bentong-Raub Belt,” he said.
He added that adopting modern mining technologies such as bio-leaching and satellite surveying could enhance gold production potential.
“I believe we should explore the International Gold Certification Partnership Programme.
“In 2020, Argentina launched its Gold Export Certification programme in collaboration with the London Bullion Market Association (LBMA), which increased its gold export value by 40 per cent within two years, according to the Central Bank of Argentina Report for 2022,” he said.
-- BERNAMA
