KUALA LUMPUR (Jan 15): Poh Kong Holdings Bhd (KL:POHKONG) is expecting improved sales in 2025, driven by a positive retail environment in Malaysia and a strong domestic economy.

The jewellery retailer is planning to open two more outlets this year, said Poh Kong’s executive director Ermin Siow Der Ming, while citing retail associations’ projection of a 5.5%-6% growth in retail sales this year, driven by an anticipated economic growth of at least 4.5% to 5%.

Siow said Poh Kong’s sales are already on an upswing, and the company is anticipating a further increase with the Chinese New Year around the corner.

And based on engagement with the government, it is understood that luxury tax will be put on hold for the moment, Siow said.

According to Siow, there is strong market preference for gold, and jewellery shops are changing their focus from white gold and diamond or gems, to yellow gold due to market demand.

Gold reached an all-time high of US$2,790.07 per ounce in October last year. People of all ages have recognised gold as a reliable store of value, Siow said.

However, unlike the strong uptrend in 2024, Poh Kong expects gold prices to be more volatile in 2025, fluctuating between US$2,400 and US$3,000, driven by the overall global economy and geopolitical tensions, especially given the capriciousness of the upcoming US president, Donald Trump.

On the significant increase in its profit margin over the past five years, the company said it was largely due to the surge in gold prices.

Poh Kong shares, which hit as high as RM1.29 in May last year, dropped below RM1 in November, as gold prices came off their record high.

At the time of writing on Wednesday, the stock was down half a sen at 95.5 sen, giving Poh Kong a market capitalisation of RM391.89 million.