Malaysia jolts gold market with new 10% duty on bullion bars
Malaysia has unexpectedly become a new source of tension in the gold market: some shipments of gold bars entering the country have started to face a 10% import duty. For traders, this is not merely a tax adjustment but a sharp change in the rules at a time when demand for physical gold in Asia remains strong.
Highlights
- Malaysia has introduced a 10% import duty on some gold bar shipments, disrupting bullion trade.
- Traders say some cargoes have been delayed at customs or redirected to other markets.
- Bank Muamalat said the new cost on LBMA gold will be reflected in customer prices.
The duty has been applied to some incoming cargoes since at least early May. Some shipments were either held up at customs or redirected to other jurisdictions, as the additional 10% cost would make imports unprofitable unless local gold prices rose in line with the higher expenses, Bloomberg reports.
The official wording remains narrow for now. A representative of the Royal Malaysian Customs Department said the Ministry of Finance would engage with the industry on imports of minted gold products.
Banks to pass costs on to customers
The first notable signal for retail investors came from a notice issued by Bank Muamalat Malaysia. The bank told customers that, starting June 8, 2026, the change would affect prices for physical LBMA gold, and that the 10% customs tax would be reflected in the bank’s quoted prices. According to RinggitPlus, for a one-kilogram bar worth about 450,000 ringgit, the tax could add roughly 45,000 ringgit to the price, though the final impact would depend on how the levy is applied.
This is particularly sensitive for bank-linked gold products, which have become more visible in the local market over the past year. Gold’s rally to record levels has strengthened investor interest in safe-haven assets, while Malaysia has become a more active hub for storing and trading precious metals.
The cost of disruption for the regional market
The size of the market makes the situation significant. According to the Department of Statistics Malaysia, imports of non-monetary gold into Malaysia totaled about 9.7 billion ringgit through April.
Overall, the country’s external trade rose 28.6% year-on-year in April to 336.73 billion ringgit, while imports increased 20.0% to 153.99 billion ringgit.
Earlier, we reported that gold prices were rising on hopes for a deal involving the Strait of Hormuz.
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