SHAH ALAM: Poh Kong Holdings Bhd is taking a cautious approach to expanding its retail network amid soaring global gold prices, with director Ermin Siow saying the company will focus on maintaining stability and operational efficiency across its 92 outlets nationwide.
He noted that elevated gold prices and inflationary pressures have dampened retail sentiment, prompting the group to take a measured approach to physical expansion.
"In this era of high gold prices, we are very cautious about opening new outlets. But having been in the market for nearly 50 years and as a leader in the industry, we continue to enjoy priority access to prime mall locations," he said.
Even so, Siow said Poh Kong sees potential in the expanding online market, where the company aims to grow revenue through lower overheads and wider reach.
He was speaking to reporters after the launch of Poh Kong's new Anggun 'Pesona Tanjung' collection, officiated by Her Royal Highness Tengku Permaisuri Selangor, Tengku Permaisuri Norashikin, here on Monday.
On the outlook for gold, Siow said that while investment banks such as Morgan Stanley and Citibank forecast year-end prices around US$4,500 per ounce, with some predicting up to US$5,000, he expects prices to stabilise before rising further next year.
"I don't think it will go that high as yet for this year, maybe next year, because there are a lot of things we cannot predict," he said.
Gold prices have climbed by about 50 per cent year-to-date.
Last month gold breached the US$4,100 per ounce level for the first time on renewed US-China trade tensions and expectations of US interest rate cuts.
However, the price has slipped slightly by about one per cent over the past five days.
Siow said Poh Kong is adapting to changing consumer preferences as customers seek lighter yet stylish jewellery pieces to offset high prices.
"Because of the high gold price, everyone is looking for something light but still presentable," he said, pointing to innovations such as electroformed gold jewellery that make designs more affordable without compromising on quality.
He said the jeweller's integrated manufacturing capability gives it an edge in launching new designs quickly, allowing it to stay ahead of competitors.
"Being the market leader and having our own manufacturing facilities, we are always in the lead," he said.
Source: poh-kong-has-cautious-expansion-plan-amid-soaring-gold-prices