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Malaysian gold retailers squeezed on capital to acquire precious metal

Malaysia's gold retailers are facing challenges due to rising gold prices, which require them to invest more upfront capital to maintain inventory levels. Despite increased profits, the higher costs are straining their working capital. A major gold retailer and industry observers note this trend.

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Jewelry company forced to ramp up production efforts to create "stronger, lighter, affordable" items

Rising gold prices strain the working capital for jewelry makers who have to turn raw gold into finished products. (Photo by Miki Kamiyama)

AMY CHEW

June 18, 2026 15:05 JST

KUALA LUMPUR -- Malaysia's gold retailers are navigating a tightening of working capital as elevated bullion prices force businesses to commit more cash up-front to sustain inventory levels even as profits surge, a major gold retailer and industry observers say.

Read the full article at Nikkei Asia

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Nikkei AsiaIndependent🔒Center
Malaysian gold retailers squeezed on capital to acquire precious metal

Malaysia's gold retailers are facing challenges due to rising gold prices, which require them to invest more upfront capital to maintain inventory levels. Despite increased profits, the higher costs are straining their working capital. A major gold retailer and industry observers note this trend.

Bias read (Center): The article discusses economic pressures on gold retailers without taking a stance on political issues. It focuses on market dynamics and business operations rather than policy or partisan topics.