KUALA LUMPUR: As the special withdrawal of RM10,000 from Employees’ Provident Fund (EPF) are remitted into the bank accounts of EPF members, goldsmith shops nationwide are enjoying up to 40% increase in their businesses.

More customers are buying gold, leading to business volume doubling compared to the first two weeks of the fasting month, said some goldsmith shop operators.

As of 14 April, EPF has received 5.3 million applications under the special withdrawal facility to withdraw a total of RM40.1 billion.

Datuk Steven Siow, president of the Federation of Goldsmiths and Jewellers Associations of Malaysia, said traditionally the first two weeks of Ramadan were considered low season for goldsmith business.

The business volume was even lower in the last two years due to the implementation of Movement Control Order.

However, as EPF contributors began to receive the fund, business started to peak since last Monday. People are buying gold with their EPF special withdrawals,” he said.

Siow said the staff were informed by the patrons they had just received their EPF money.

As Hari Raya is just around the corner, many are buying gold or trading in their old jewelleries for new ones.

Siow predicted that gold price would rise further due to the strong market demand.

Some customers are buying small gold pieces ( below five grams) as gift or hedge against inflation.

Malay tabloid Kosmo! reported that a goldsmith shop in Kota Bharu sold more than RM50,000 worth of jewelleries in two hours after EPF funds were released.

The shop owner said she had thought that many would want to trade in their gold as prices of gold had spiked.

However, more patrons were buying gold than trading-in, mainly for Hari Raya, she said.

The goldsmith shops in Kuala Terengganu also saw increasing number of patrons.

A goldsmith shop near the market closed at 2pm after all its jewelleries were sold out in just half a day.