Malaysia Allows Citizens to Mine Gold Amid Soaring Prices

Economic Opportunity for Low-Income Workers

The Malaysian state of Kelantan has launched an initiative allowing its citizens to mine gold manually in designated river locations. This move comes as gold prices continue to soar, creating an economic opportunity for low-income workers and those with irregular income. The registration for official permits began on January 1, 2026, marking the beginning of this new economic opportunity.

Targeting Vulnerable Communities

The program specifically targets daily workers and individuals with unstable incomes, groups that are significantly represented in Kelantan. This region is known for being one of the lowest-income states in Malaysia, characterized by its rural landscape and limited industrial activity. By allowing manual gold mining, the state government aims to provide an additional source of livelihood for these communities.

Political Context and Implications

Kelantan is governed by the opposition Pan-Malaysian Islamic Party (PAS), which has long voiced grievances about the lack of attention from the central government regarding regional development. While the central government in Putrajaya has denied these allegations, the initiative to allow gold mining can be seen as a local response to economic challenges. This development highlights the complex relationship between the state and central governments in addressing regional economic issues.

Economic and Social Impact

The decision to allow manual gold mining is expected to have a positive impact on local communities by providing them with an additional source of income. However, it also raises questions about environmental and regulatory challenges that may arise from increased mining activities. The implementation of this policy will be closely watched to assess its overall impact on the region's economy and environment.