KUALA LUMPUR: Bank Muamalat Malaysia Bhd is targeting to sell 580 kilogramme (kg) of physical minted gold bars worth RM250 million through its latest product, Muamalat Gold-i (MGi) Account, for its financial year (FY) ending March 31, 2018.
Chief executive officer, Datuk Mohd Redza Shah Abdul Wahid said the bank was optimistic of achieving the target as the MGi Account was affordable to the public as they would be able to purchase gold from a minimum of RM10 or one gramme.
“This newly introduced product is a continuation from our MGi product launched in April last year.
“The uniqueness of MGi Account is that customers will be able to invest in the commodity without the need to keep physical gold,” he told reporters at the bank’s Hari Raya Open House and the launch of MGi Account, here today.
The syariah-compliant product contains 99.99 per cent of highest purity minted gold bars and is backed by the Perth Mint Australia cast gold bars weighing one kg each and accredited by the London Bullion Market Association.
The product is the first of its kind to be introduced in Malaysia.
Redza Shah said a passbook containing the principal account holder’s name, account number and the description of the gold purchased would be issued to the customer upon account opening.
Earlier, Bank Muamalat chairman, Tan Sri Dr Mohd Munir Abdul Majid, in his speech said minted gold bars had been extremely popular with its customers, whereby as at June 30, 2017, the bank sold over 374 kg of gold worth RM73 million.
“The demand for gold is surging across Asia as economies boom and private economies grow.
“Because investment in gold is now an insurance, its long-term prospect has become unchallenged and historically, investors have seen gold as a safe haven to protect their wealth during bad times,” said Mohd Munir. — Bernama