Gold rush: Malaysia’s Kelantan to let poor residents dig for precious metal
The move comes as gold prices soared and videos of local Kelantanese panning for the metal were shared online
The state government opened applications for official licences on January 1, allowing residents to pan for gold manually in designated areas, according to state news agency Bernama.
The move targets daily wage earners and those in irregular work, a significant demographic in Kelantan, one of Malaysia’s poorer states with a largely rural population and a limited industrial base.
Kelantan, long governed by the Islamist opposition party Pan-Malaysian Islamic Party (PAS), has frequently accused the federal government of neglecting its development, though Putrajaya says it has not sidelined the state.
Nik Raisnan Daud, the land and mines director of Kelantan, said the scheme aimed to balance economic relief with safety and environmental controls.
“The state government believes low-income earners can still take part in this activity, especially those who depend on daily wages and irregular work,” he told local media. He said 916 gold – a common jewellery grade that is 91.6 per cent pure – was trading at about 565.77 ringgit (US$120) per gram recently, with prices fluctuating by up to about 11 per cent.
In the global gold market, the price of the precious metal surged by more than 60 per cent towards the end of last year to a record high of US$4,549 an ounce before falling after Christmas to about US$4,330 on December 31.