Singapore Bullion Market Association

Website Sponsor
SBMA ASEAN Philippines

Philippines’ Gold Market

Introduction

Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, is the only agency that purchases and exports gold from miners in the country. In addition, BSP is an LBMA accredited gold refiner, and also holds 196 tonnes of gold in its reserves, which represents 8.8% of the country’s total gold reserve (IFS, January 2017)

According to Metals Focus, mine production in the Philippines was 42 tonnes, and recycling was 2 tonnes in 2016.

The Philippines is one of the leading producers of gold in ASEAN. According to Metals Focus, mine production in the Philippines was 42 tonnes, and recycling was 2 tonnes in 2016. It is estimated that about 200,000 to 300,000 people work in small-scale gold mines in the country. However, some of these mines do not meet BSP’s responsible gold sourcing policy standards. As a result, the tracking of the production of small-scale mines in the country is not properly in place, so gold produced by these mines are exported out of the country without a trace.

In addition to the BSP’s official market, there are also pawnshops and street jewellery shops that buy or sell gold, but many of them may not be reliable, so it is not advisable to patronise such shops unless you know them.

According to the Bureau of Internal Revenue, 2% Excise Tax and 5% Creditable Withholding tax shall be paid by a trader.

The sections below set out the guidelines of BSP’s Gold Buying Program, Responsible Gold Sourcing Policy and Gold Selling Program, which can also be found online.

BSP Gold Buying Program

The BSP purchases gold from small-scale miners in accordance with the Republic Act No. 7076 (People’s Small Scale Mining Act of 1991) and from other sources. It then refines the gold purchased to forms acceptable in the international bullion markets.

The BSP has five existing buying stations located in Quezon City, Baguio City, Davao City, Zamboanga City, and Naga City.

GUIDELINES – BSP GOLD BUYING PROGRAM

  1. Gold may be sold to the Bangko Sentral ng Pilipinas (BSP) through its buying stations in the Department of General Services (DGS) in the Security Plant Complex, Quezon City and in the Bangko Sentral regional offices in Davao City (BSRO-Davao), Zamboanga City (BSRU-Zamboanga), Baguio City (BSRU-Baguio) and Naga City (BSRU-Naga).

  2. The BSP shall purchase the refined gold in Philippine pesos (PHP), at the prevailing international gold market price and prevailing PHP / USD exchange rate set by the BSP Treasury Department on a daily basis.

  3. Gold traders / residents intending to sell their gold to the BSP shall address and present to the Office of the Director, DGS (if sold to the DGS buying station) or to the Office of the Regional Administrator (if sold to the regional buying stations), their “Letter of Delivery and Sale” clearly indicating that the gold is offered for sale for value on the date of delivery and must be received not later than 2:00 p.m. of the advice date.

    Notes:
    1. Forms of the “Letter of Delivery and Sale” shall be provided by BSP.
    2. Xerox or other reproduced copies shall not be allowed / accepted.

  4. Requirements for Acceptance:

    1. Physical Form
      1. Bar or disc (powder is not accepted).
      2. Should not contain mercury or amalgam in any quantity.
      3. Free of slag or other foreign matter.
      4. No sign of metallic segregation / layering or poured shortness.
      5. Should not be damp or wet.
    2. Maximum Dimensions
      1. Bar: 16.5 cm (6.5”) long x 8 cm (3”) wide x 4 cm (1.5”) thick
      2. Disc: 10 cm (4”) diameter x 5 cm (2”) thick maximum
    3. Weight
      1. Maximum weight per bar or disc shall be approximately 160 tr. oz. (@ 5 kg.)
      2. Maximum weight per lot shall be approximately 320 Tr. Oz. (@ 10 kg.)
    4. Minimum Preliminary Gold Assay – 30%
    5. For first time sellers – Accomplishment of Specimen Signature Card with picture and name/s of authorized representative/s.
    6. Payment Scheme:
      1. Initial payment equivalent to 99% of the value of the delivery based on as-received weight and preliminary assay by specific gravity method less the 2% Excise Tax and the 5% Creditable Withholding tax shall be paid the following business day after date of delivery / sale, depending on the volume of purchase.
      2. Final settlement of the balance shall be paid upon completion of evaluation melting and final assay or within thirty (30) calendar days from date of delivery / sale, depending on the volume of purchase.
  5. Deductions (processing cost and metal recovery factors) shall be applied in accordance with the following schedule:
Bar Assay Fineness Processing Cost**(PHP/oz. of material received) Metal Recovery Factor
995 and above 34.00 99.80%
900 to less than 995 37.77 99.30%
700 to less than 900 39.37 99.00%
500 to less than 700 42.17 98.90%
300 to less than 500 45.67 98.60%

Silver Recovery – 97% for assay of 1% and higher; no recovery for assay below 1%

** Minimum charge of PHP 1,600.00 per delivery

Source: Bangko Sentral Ng Pilipinas (http://www.bsp.gov.ph/bspnotes/bspgold.asp).

BSP Gold Buying Stations

GBS BAGUIO RCBC Building, Session Road, Baguio City (074) 4449512
GBS DAVAO BSP Davao Regional Office, Quirino Avenue, Davao City (082) 2279051 local 225 and 229
GBS NAGA BSP Naga Regional Office, Roxas Avenue, Diversion Road, Naga City (054) 473.9073
GBS ZAMBOANGA LMS Building I, Veterans Avenue, Zamboanga City (062) 991.0146
GBS QUEZON CITY Security Plant Complex, East Avenue, Quezon City (02) 925.7179 and (02) 929.7071 loc 337

BSP’s Responsible Gold Sourcing Policy

Declaration of Policy

The BSP commits to ensure that the source of its gold products complies with the standards set forth by the London Bullion Market Association (LBMA) with the ultimate goal of building customer trust.

Coverage

The BSP shall conduct gold transactions with small-scale miners, gold-panners, gold traders and/or sellers, referred to in this policy as “gold-supplying counterparties”, who comply with the BSP Responsible Gold Sourcing Policy.

Responsibilities

The BSP shall:

  1. Buy its gold only from known sources and areas that have not used gold to finance any form of crime or conflict, terrorism, human rights violations, and money laundering activities.
  2. Suspend or discontinue transacting with gold-supplying counterparties identified as operating in contravention of this policy.
  3. Adhere to the laws and regulations against money laundering, any form of crime, human rights violations, and terrorism and its financing.
  4. Provide relevant training on this policy to involved BSP employees and sellers.
  5. Maintain a Quality Management System subject to audit by a third party certifying body.

Effectiveness

This Policy shall take effect on April 8, 2015.
London Bullion Market Association (LBMA) Assessment Report
LBMA Responsible Gold Certificate

Source: Bangko Sentral Ng Pilipinas (http://www.bsp.gov.ph/bspnotes/bspgold3.asp).

BSP Gold Selling Program

The BSP sells gold grains and sheets to local jewellery manufacturers and industrial users. The gold grains are packaged into 50 and 100 grams and may be purchased at the Department of General Services (DGS), BSP, East Avenue, Diliman, Quezon City. At present, gold sold is 24K and minimum assay is 99.5%.

PROCEDURES FOR PURCHASING GOLD

  1. Accomplish the following forms and present them to DGS:
    1. Application to Buy Gold for Jewellery Manufacturing and Industrial Purposes
    2. Authorization to buy gold from BSP.
  2. The DGS employee in charge of gold sales receives (date and time stamp, records) the application and computes the cost of gold to be purchased based on the BSP selling rate determined by the Treasury Department plus the applicable service fees and taxes.
  3. The buyer pays for the gold in the forms of cash, Cashier’s or Manager’s Check, or authorized/confirmed Debit of Demand Deposit of Banks to the teller.
  4. The buyer presents the official receipt to the DGS employee in charge of gold sales, who in turn releases the purchased gold to the buyer.
  5. Upon receiving the purchased gold, the buyer signs the Acknowledgement Receipt to complete the transaction.

Source: Bangko Sentral Ng Pilipinas (http://www.bsp.gov.ph/bspnotes/bspgold2.asp).

Conclusion

There is a growing middle-class in the Philippines, which has the potential to create more domestic demand for gold and other precious metals. However, gold investments are not as popular as other countries in the region. Additionally, the public’s taste for jewellery is very different from other Asean countries, and locals tend to purchase designer jewellery rather than high karat gold jewellery.

As one of the leading producers of gold in Asean, Philippines has a potential to grow further and become one of the region’s key distribution centres of gold.

Many small-scale mines are looking for a way around the current tax scheme and BSP’s stringent responsible gold sourcing policy, and many mine productions are not declared or registered. A change in the tax scheme or the creation of a proper gold market ecosystem might help grow actual mine production numbers in the future.

Economic Data (2015)

  • Population: 101 million
  • GDP growth: 5.8 %
  • GDP per capita: US$2,877
  • CPI: 1.5%
  • Exports: US$59 billion
  • Imports: US$67 billion
  • Foreign reserves: US$81 billion
  • Foreign debt: US$77 billion

Source: FOCUSECONOMICS

Links

Bureau of internal Revenue – https://www.bir.gov.ph/

Bangko Sentral Ng Pilipinas – http://www.bsp.gov.ph/

Singapore Bullion Market Association Secretariat-Lee-Jia-Yi

Lee Jia Yi

OPERATIONS & ADMIN EXECUTIVE
Before joining SBMA, Jia Yi worked as an Admin & Reporting Officer in her previous role. She holds a Diploma in Business & Social Enterprise from Ngee Ann Polytechnic. Jia Yi is responsible for managing and maintaining physical and digital files in SBMA, supporting invoicing processes, reconciling receivables and payables, coordinating meetings and conferences. Additionally, she will provide support to the team and assist the Business Director in managing the Association’s office operations and general administrative activities.

SECRETARIAT SBMA-Emily-Oh

Emily Oh

OPERATIONS & ADMIN EXECUTIVE
Emily Oh is the Operations & Admin Executive, a seasoned professional who values teamwork and effective communication. She is skilled at adapting to new challenges and takes a proactive and resourceful approach to every task. Before joining SBMA, Emily had experience coordinating international travel arrangements and spearheading community initiatives. Her role at SBMA will be providing operational and administrative support for projects and other matters to the team.

SECRETARIAT SBMA Clara-Chang

Clara Chang

MARKETING & COMMUNICATIONS EXECUTIVE
Clara Chang joins SBMA as the Marketing & Communications Executive, enriching the team with her extensive experience in content creation, social media management, and digital marketing. Prior to joining SBMA, Clara held the position of Marketing Executive at her previous job. She holds two bachelor’s degrees from the University at Buffalo, one in International Trade and another in Geographical Information Science. Her core duties will include maintaining the SBMA website, managing the quarterly Crucible newsletter, among other responsibilities.

SBMA Committee-Photo-john-levin

Mr John Levin

Global Metals
TD Securities
John Levin is the Head of Metal Sales & Trading – APAC at the Toronto Dominion Bank’s Singapore office. Prior to this role, he devoted seven years to leading precious metal sales for the ANZ banking group in his home country, Australia. Notably, from 2009 to 2011, John played a significant role on the management committee of the London Bullion Market Association while serving as the Head of Precious Metals Sales for HSBC Global Banking and Markets in the UK.

SBMA Secretariat-Fabian-Lew

Fabian Lew

MARKETING & COMMUNICATIONS OFFICER

Fabian was a Business Development and Marketing Associate before joining SBMA. He graduated from Singapore Management University with a Bachelor’s degree in Economics.

He has joined SBMA since February, 2022.

SBMA-margare-secretariat

Margaret Wong

BUSINESS DIRECTOR

Margaret Wong, Business Director at SBMA (Singapore Bullion Market Association), brought valuable experience from her previous role at the World Gold Council (WGC). Her tenure at WGC provided her with extensive exposure to the gold community in Singapore and the broader region. This background has been instrumental in establishing strong working relationships within the industry.

Margaret’s role at SBMA encompasses a diverse range of responsibilities. She oversees office management, business support processes, finance, and administrative functions essential for the smooth operation of the team and management committee. Additionally, Margaret handles membership matters, member communications, and addresses public inquiries related to SBMA.

One of Margaret’s key responsibilities is coordinating with the Event Management Company for SBMA’s prestigious annual event, the Asia Pacific Precious Metals Conference. This flagship conference plays a crucial role in the industry, making her involvement pivotal in its success.

Described as resourceful and self-motivated, Margaret Wong brings a wealth of skills and experience to her role at SBMA, ensuring efficient operations and effective engagement within the precious metals community in Singapore and beyond.

SBMA-Albert-secretariat

Albert Cheng

Chief Executive Officer

Albert Cheng joined the World Gold Council in March 1993 as a Regional Manager, becoming Managing Director, Far East in 2003. He retired at the end of March 2015 and was subsequently named its Advisor. He has also been an International Advisor to the Shanghai Gold Exchange since 2002.

His marketing career began with Dentsu Young & Rubicam, Hong Kong in the early 80’s. He began gold marketing in July 1985 when he joined the Royal Canadian Mint as a Regional Manager for Southeast Asia.

He was appointed honorary CEO of SBMA in November 2015. He is responsible for the success and strategic development of SBMA, represents the interests of the Association, and is responsible for all the legal and regulatory aspects of the work of the Association. He is the primary contact for regulators and government bodies on bullion market development.

Ms Pawan Nawawattanasub

Ms Pawan Nawawattanasub

CEO
YLG Bullion Singapore Pte Ltd

Pawan is the CEO of YLG Bullion Singapore and founder of YLG Bullion International. She has almost 40 years of experience in the jewellery industry and established YLG in Thailand in 2003. In 2012, she brought YLG to Singapore. She sits on the Board of Directors of the Thailand Gold Traders Association, the Thailand Futures Exchange’s Arbitration Committee, and the Rotary Bangkok committee. She holds a master’s degree in Political Science.

SBMA-Shaokai-Fan

Mr Shaokai Fan

Head of Asia-Pacific (ex China) and Global Head of Central Banks
World Gold Council
Shaokai Fan is the Global Head of Central Banks at the World Gold Council, responsible for advising governments on gold matters, and enhancing the gold market through engagement, dialogue, and thought leadership. He works directly with central banks and sovereign wealth funds on investment considerations. Prior to this position, Shaokai held multiple roles at Standard Chartered Bank, including Director for Asia Strategic Initiatives and Associate-Director for Public Sector coverage. Shaokai holds a Masters of Public Administration from Columbia University and the London School of Economics, and an undergraduate degree in finance and economics from New York University.

SBMA-Committee-Alan-Liew

Mr Alan Liew

Head of Bullion & Commodities Trading
United Overseas Bank Limited
Alan is Head of Bullion and Commodities Trading for Group Trading in Global Markets, United Overseas Bank (UOB). Alan joined UOB and started the bank’s commodities trading business in 2014, previously he spent eight years in Standard Chartered Bank (SCB) trading both precious and base metals. During his tenure at SCB, he obtained the SGE gold trader licence and was part of the pioneering team for the SGE business and the FX quantitative trading team. Prior to trading, he worked for Monetary Authority of Singapore in the Financial Risk Management Division. He holds a BSc (Hon) in Computer Science at National University of Singapore and a MSc in Financial Engineering at Nanyang Technological University.

SBMA-Committee-Nikos

Mr Nikos Kavalis

Managing Director
Metals Focus Singapore Pte Ltd
Nikos Kavalis is a founding partner of Metals Focus. He has over 20 years of experience in precious metals, having previously worked for the Royal Bank of Scotland and GFMS. Since September 2019, Nikos has been based in Singapore, where he also runs the local subsidiary of Metals Focus.

SBMA-Committee-khun nuttapong

Mr Nuttapong Hirunyasiri

CEO
MTS Gold Global Trading Pte Ltd
Nuttapong Hirunyasiri is the CEO of MTS Gold Group, one of Thailand’s top 10 companies and top 3 bullion companies. He started MTS Gold Group’s first overseas office in Singapore and has been expanding the group business internationally. He focuses on product development and innovation for gold investment, with the aim of being a leader in providing the full suite of gold investment services in the ASEAN region.

SBMA Committee-Photo-Raman-Walia

Mr Raman Walia

Executive Director, Head of Commodities Sales – APAC
JP Morgan Chase Bank N.A.

Raman is Executive Director and Head of Commodities Sales, APAC, for J.P. Morgan. He joined JPMorgan in 2008 in New York, moved to Singapore in 2011, and helped expand the precious metals business in the region. Raman has an MBA from Cornell University, and likes to travel in his spare time.

SBMA Committee-Photo-Andrew-Clarke

Mr Andrew Clarke

Head of Brink’s Global Services
Brink’s Global Services Pte Ltd

Andrew Clarke is the Head of BGS (Brink’s Global Services) for Singapore, Indonesia, Malaysia and Brunei. He has held various leadership positions throughout his career in secure logistics and risk management with Brink’s, which started in Hong Kong in 2010. Andrew relocated to Singapore in 2018 to expand the precious metals line of business along with Brink’s portfolio of services and industries.

SBMA Committee-Photo-Kazuya-Naoki

Mr Kazuya Naoki

Head of Metals, Asia
ICBC Standard Bank Plc, Singapore Branch

Kazuya (Kaz) Naoki is the Head of Metals, Asia of ICBC Standard Bank in Singapore and is responsible for the precious & base metals sales and trading in the region. He joined Standard Bank Plc Tokyo Branch in 2008 and was relocated to its Singapore Branch in 2013 whose controlling stake was acquired by the Industrial and Commercial Bank of China in 2015. Prior to joining Standard Bank, Kaz spent 11 years focusing on commodity trading and risk management with Mitsui & Co in Tokyo, Sydney and London. Kaz has been serving on the SBMA Management Committee since 2016.

SBMA Committee-Photo-Vinh-Nguyen

Mr Vinh Nguyen

Head of Precious Metals, Asia
StoneX APAC Pte Ltd

Vinh Nguyen joined StoneX Group in Singapore at the beginning of 2008 and responsible for its APAC precious metals activities since 2019 until now.

SBMA Committee-KL-Yap

Mr KL Yap

General Manager, Singapore Refining Business Unit
Metalor Technologies (Singapore) Pte Ltd
KL YAP is the General Manager of Metalor Technologies (Singapore) Pte Ltd’s Singapore Refining Business Unit. He joined Metalor in 2013, initially in Refining Sales. In 2014, he became Refining Business Unit Manager, leading the development of a new precious metal refinery. KL was Vice Chairman of SBMA from 2017 to 2021, now serving as Chairman. With a degree in business commerce, finance, and marketing, he brings prior experience from refinery and heavy industries.