QUANTUM Metal Sdn Bhd (QM), one of Malaysia’s largest gold bullion distributors, has revealed that no further action (NFA) will be taken against the group after a thorough and diligent investigation by the respective regulatory authorities.
Such outcome reaffirms its adherence and compliance to regulatory and business requirements while further solidifying its legitimacy and operational integrity, according to QM who is a provider of 99.99% premium gold products to the Malaysian market.
Throughout 2023, QM said it paid out a total of RM2.9 bil in redemptions or 97% of all redemptions.
“This was a result of an unprecedented RM500 mil redemption request within a single week in December 2023, driven primarily by a sudden surge in the price of gold,” shared QM’s corporate advisor Datuk Daniel Chin Swee Chong in a media statement.
“Despite the significant surge in redemptions to lock in profits, QM successfully disbursed RM400 mil on time while a 3% portion of redemptions resulted in delays due to temporary cash flow constraints.”
Since then, Chin said QM has actively pursued external funding avenues to reinforce its financial standing.
Moving forward, QM has also entered into a strategic partnership with a licensed Malaysian financial institution to further strengthen its liquidity.
“This strategic collaboration enhances QM’s financial position, add value to its portfolio whilst ensuring stability and business continuity. As a result, payment settlements are expected to commence from March 2025,” projected Chin.
In a related development, the Shariah-complaint QM further announced a settlement programme utilising a Gold Promissory Note Agreement.
“This initiative and solution offer eligible members a direct access to QM’s gold assets, represented through a contract note with Besra, a publicly listed company on the Australian Stock Exchange,” noted Chin.
“The settlement period can extend up to three years with repayment options available in either physical gold or monetary form, depending on the company’s available funds and discretion.”
Added Chin: “Specific category of eligible members are advised to wait for further updates pending a notification to them.” – Feb 19, 2025
