KUALA LUMPUR: HABIB, a name synonymous with heritage and luxury, is on a mission to strengthen Malaysia’s position in the global market to ensure that each of its jewellery creation is worthy of international standards. The homegrown jeweller, established 66 years ago in Malaysia, aims to instil a sense of national pride among Malaysians while appealing to a universal audience. Habib Group Executive Chairman Dato’ Sri Meer Sadik Habib said the company is also shifting the stereotype of homegrown products and promoting Malaysian identity globally. “We have a strong Malaysian element in everything we do because we are proud to be a Malaysian brand. We want to be a brand that Malaysians will be proud of first, and then we want to put Malaysia on the map of the world with our culture and tradition weaved into our products. We are working on this,” Meer Sadik told The Exchange Asia in an exclusive interview.
In diversifying its approach, HABIB prioritises several key elements, namely quality and creativity, ensuring that every aspect of its products and designs reflects the pinnacle of global standards. “One of our milestones was initiating the production of designs unique to the world. In terms of differentiation, our focus on diamonds as an investment stands out, particularly with certified diamonds that retain substantial value, providing customers with a viable asset,” Meer Sadik said. Touching on the local perception of Malaysian-made products, Meer Sadik said the challenge is to change people’s mindsets about local products. “People think Malaysian brands are not good enough. That is the current mindset. They believe international brands are better and local brands are below average. What we are doing now is changing that mindset. We want to be a brand that Malaysians can be proud of and globally accepted,” he said. HABIB has achieved international acclaim, earning the trust of esteemed names that have selected the brand as their exclusive distributor or collaborator. These notable partnerships encompass Pandora, recognised for its customisable charm jewellery from Denmark; Stephen Webster, a prominent London-based jewellery brand, and Ice-Watch, an affordable luxury watch brand from Belgium. In addition to the jewellery business, HABIB is involved with various other businesses such as Ar-Rahnu Express and Chantique, as well as international brands like Hearts on Fire and Korloff.
The group has also invested in real estate, hospitality, as well as food and beverage businesses. Moving on, Meer Sadik expects the gold price to be strong throughout this year. “For the last few years, most countries have created a lot of debt, which has created inflation. And the best hedge against inflation is gold, so people buy gold. The gold price has not increased significantly in the past few years due to high interest rates in the United States; however, there are talks of impending interest rate reductions, which may prompt an increase in gold prices,” Meer Sadik said. He said HABIB anticipates a potential increase in gold prices as rates decrease, depending primarily on the movement of interest rates in the US. “Additionally, fluctuations in the ringgit’s value, which may strengthen if US interest rates decline, could further influence the balance of gold pricing,” he said. Meer Sadik also calls on the government not to impose a luxury tax on jewellery, as many Malaysians, including those in the B40 and M40 income brackets, opt to purchase gold as a means of savings. He said a significant portion of the population also does not have bank accounts, and they buy gold or gold jewellery as a form of investment when they have surplus funds.
“I sincerely hope there won’t be any tax implementations on jewellery,” Meer Sadik said. He said that a few years ago, when the option to withdraw funds from Employees Provident Fund was announced, there was a noticeable surge in gold purchases, particularly among the B40 and M40 groups. “While I fully endorse the government’s consideration of imposing taxes for the T20 group, ensuring minimal impact on the B40, our observations reveal a substantial number of B40 individuals, including those in the M40 category, engaging in jewellery purchases, notably gold. “So, the implementation of taxes will determine what happens next. Without taxes, people will probably buy jewellery, especially gold,” Meer Sadik said. HABIB will continue to be present at strategic places and are looking to open a few branches this year. Meer Sadik said an outlet in Tun Razak Exchange (TRX) was recently opened, and the company plans to open another outlet in Menara 118. “We are also assessing our expansion plans, focusing on broader international growth this year. We are venturing beyond Malaysia into various regional destinations within Southeast Asia. We already have a presence in Singapore, the Philippines, Hong Kong and Taiwan,” Meer Sadik said, adding that HABIB is not just about profit and loss. “That is the last thing that we look at. We want to make a significant difference in the lives of people. We are in this business started by my late father. It is because of what he wanted – to be in the business of ‘happiness’. So that is something that we strive for,” Meer Sadik said.
