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China Looks To Southeast Asia

By SBMA

Published on December 20, 2019
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Once a relatively closed market, Southeast Asia’s gold jewellery market has been gradually opening up and undergoing reforms, and is now growing rapidly. Economic growth in the region is stimulating robust gold demand. In the past nine years, gold and jewelley demand in Southeast Asia has grown steadily. Gold consumption in the 10 ASEAN countries reached 309 tonnes in 2018, second only to China and India.

Chinese firms are eager for a piece of the pie. Some large gold and jewellery companies have begun to cooperate with leading local companies to export products, technologies and other services. China not only has a large output of gold jewellery, but is also an important gold jewellery manufacturing and innovation hub. Being located close to Southeast Asia means that collaboration opportunities abound in gold jewellery design, process technology and intelligent manufacturing, and more.

Panellists at the Asia Pacific Precious Metals Conference discussing China’s gold industry and opportunities for firms in Southeast Asia.

CHINESE JEWELLERS GOING GLOBAL

Gold jewellery processing and design firm Batar Group from Shenzhen, China, is already active in Singapore, Malaysia, Thailand and other countries with large Chinese communities. The firm works with leading gold and jewellery companies to supply wholesale bridal and retail jewellery products that cater to the local market. In recent years, Batar Group has cooperated with leading companies from Singapore, Malaysia to Hong Kong. Batar hopes that soon, its gold products can be directly exported to ASEAN from its Shenzhen, Hangzhou and Tianjin production facilities to reduce operating costs and improve efficiency.

At the Asia Pacific Precious Metals Conference (APPMC) in June 2019, Batar Group chairman Mr Edmund Chau said the firm would strengthen exchange and cooperation with overseas markets, continuing the development of gold products and exploring the essence of 5,000 years of Chinese culture, as well as combining Southeast Asia’s culture with creative designs and high-tech craftsmanship to provide exceptional cultural products made in gold for the ASEAN market.

In Thailand, Shenzhen-based Yuehao Jewellery supplies wholesale gold jewellery and exports technology and equipment that have raised the efficiency and standard of domestic jewellery production. The firm has started to explore the Indonesian market.

Mr Defen Zhou, president of Yuehao, said he believes the local Chinese have enough disposable income to spend on gold jewellery, and is also confident about the Singapore market, which is comparatively more developed.

Chinese jewellers going global respect the diversity of preferences in Southeast Asian market and cater their offerings to the local gold and jewellery culture. For example, in the process of exploring and developing the Thai market, Yuehao Jewellery has adopted many Thai designs into its products to attract domestic consumers.

THE UNTAPPED LOCAL CHINESE MARKET IN SOUTHEAST ASIA

Even though there is a gap in the development of the Southeast Asian jewellery market in terms of product purity and market maturity compared to the Chinese market, there is no difference in the popularity of gold among locals.

According to the World Gold Council’s Gold Demand Trends Q1 2019 report, gold jewellery demand remained stable in Malaysia and Thailand, while Indonesia and Vietnam have stronger demand, largely from the local Chinese market.

Seeing the market potential and strong consumption, especially among local Chinese, SK Jewellery Group, a well-known local jewellery retailer in Singapore, first introduced 24K gold jewellery to Singapore in 2012 and became the first retailer to sell 9999-purity gold in the local market. The firm partners Batar and Yuehao in its design and manufacturing process.

Retailers like Chow Tai Fook from Hong Kong have also started operations in Southeast Asia. Today, Chow Tai Fook has a network of outlets in Malaysia, Singapore, Vietnam and Cambodia.

Customs data shows that in 2018, mainland China and Hong Kong exported a total of $621 million in gold jewellery to Southeast Asia. Gold jewellery exports also reached 4.6 tonnes, with a growth rate of 3.6%, accounting for 87% of exports.

OPPORTUNITIES AND CHALLENGES

While more Chinese gold and jewellery companies are paying attention to the Southeast Asian gold market, there is no denying that their entry to markets there has not been as fast as expected. Many firms are finding hard to replicate the rapid growth of China’s gold market in Southeast Asia – the region’s gold business needs to develop incrementally and cannot grow as fast as China’s.

Today, China is one of the world’s largest gold jewellery processing and manufacturing centres, with exquisite processing technologies and rich labour resources. New Chinese products and technologies such as solid gold, coloured gold and 5G gold rank among the forefront globally. Prices of Chinese gold jewellery products are also competitively priced. As such, there is an opportunity for China’s gold and jewellery industry to cooperate with ASEAN enterprises and develop the Southeast Asian markets.

Meanwhile, the transformation and upgrading of China’s gold and jewellery industry are accelerating. As the younger generation becomes the main consumer group, China’s gold jewellery innovation has hastened and product structure has changed significantly: 3D solid gold, mirror gold, 18K gold and 22K gold are becoming more popular among the new generation of consumers who want fashionable designs and cheap prices. At the same time, ancient gold, 5G gold, and HD gold are growing in popularity. In addition, there is a large space for cooperation in the financial sector and e-commerce.

“With the rapid development of technology, more intelligent manufacturing will take place in the jewellery industry. While production efficiency was greatly improved by automation and mechanisation, we can also expect China’s jewellery manufacturing capacity will be further improved. The large innovative manufacturing bases in China can fully meet the needs of local and overseas retailers and wholesalers”, Mr Roland Wang, World Gold Council managing director, China, said at the APPMC.

From left, Roland Wang (WGC), Datuk Ng Yih Pyng (Tomei Consolidated Bhd), Nicholas Frappell (ABC Bullion), Edmund Chau (Shenzhen Batar Investment Holding Group), Bobby Liu (Chow Tai Fook Jewellery Co. Ltd), Zhang Yongtao (China Gold Association), Mary Lim (SK Jewellery Group), Stephen Defen Zhou (Yue Hao Jewellery Group)
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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.