1, Malaysia is a gold resource country, and its domestic gold production is relatively large, which leads to relatively sufficient domestic gold supply and naturally lower price. Exporting to other countries and regions also needs to increase transportation and transaction costs, so the price will increase accordingly.
2. Malaysia implements the policy of gold import and export liberalization, and has almost no control over gold trading and price. This is conducive to the formation of a relatively close relationship between domestic supply and demand, and the price of gold can fluctuate according to the actual market situation, and there will be no major policy distortion. This is also one of the reasons for the low price of gold in Malaysia.
3. Malaysia's consumption tax is low, and the consumption tax rate of gold trading is only 5%. In Chinese mainland and some other countries, the consumption tax rate has reached more than 10-20%. Lower consumption tax can reduce the transaction cost of gold and make the price closer to the actual market situation.