Weaker ringgit to increase prices of gold products, says Tomei Consolidated

by AZALEA AZUAR / pic source: TOMEI FB

THE weaker ringgit will likely affect prices of gold products and jewellery as the local unit hit a fresh two-year low of 4.4065 against the greenback today.

Tomei Consolidated Bhd MD Datuk Ng Yih Pyng said without making any prediction on gold price, the weaker ringgit will cause gold prices in ringgit terms to be higher.

“When the US Federal Reserve increased the interest rate, the gold price in dollars had weakened slightly but it is compensated by the depreciation of the ringgit,” he said following Tomei Consolidated’s annual general meeting.

The integrated jewellery manufacturer and retailer foresee more cautious spending by consumers due to the ongoing geopolitical and economic uncertainties.

He added Tomei Consolidated is looking into improving profitability by opening up more stores this year. He added the jewellery maker’s store network has expanded to Langkawi, Kedah, and Kelantan in April.

“We try not to open stores where we already have a presence, so we are now expanding into places that we don’t have a store like the East Coast.

“If you open one or two more stores in Kuala Lumpur City Centre, it’s potentially for the same customers,” said Ng.

Currently Tomei Consolidated operates 57 stores nationwide.

Tomei Consolidated also is in the midst of listing its wholly-owned subsidiary YX Precious Metals Bhd on Bursa Malaysia Securities Bhd by the end of June.

“We have secured all the necessary approvals and we are going to launch the prospectus soon. Hopefully, after the listing of YX Precious Metals, the manufacturing and distribution of business will expand further.

“We will still focus a lot on Malaysia as we see a lot of potential in this market,” Ng said.

The reopening of international borders and transition to the endemic phase will have a positive impact on the retail sector, he added.