From jewellery recycling to digital gold trading – ValueMax eyes deeper presence across Singapore’s gold supply chain

[SINGAPORE] Amid increasing competition in Singapore’s precious metals market, pawnbroking chain ValueMax Group intends to deepen its presence across the gold supply chain – from jewellery recycling to digital gold trading.

The mainboard-listed company has diversified its earnings base by repositioning itself beyond its traditional pawnbroking business. Over the decades, it has expanded into retail, trading of jewellery and gold, and moneylending.

As the business grows, it is actively adapting to changing consumer preferences, Yeah Lee Ching, managing director for retail and trading at ValueMax, told The Business Times.

“It’s different strokes for different folks,” said Yeah, comparing bullion and digital gold, which ValueMax trades but does not currently offer as a retail product. Digital gold refers to electronic or tokenised financial instruments that track the value of the precious metal. This allows businesses and investors to trade, fractionalise and hedge their positions.

“Some prefer to touch and feel the products, while (others) are fine with digital gold,” said Yeah. “To own digital gold requires a certain level of sophistication, so it doesn’t appeal to everyone. I think it’s quite early – but over time, (demand) will grow.”

To prepare for future opportunities, ValueMax has invested significantly in digital and operational systems, as well as raising financing via alternative solutions such as digital commercial papers.

Healthy competition

As Singapore pushes to strengthen its gold trading infrastructure, with new competition entering the market, Yeah noted that ValueMax is well-positioned to defend its market share, given its multi-generational history and expertise in the local market.

“Healthy competition is good because when there is competition, somehow it’s like a magnet attracting consumers. Singapore will be viewed as a hub for buying gold, and (this could) attract customers from around the region. Competition generates growth... and will develop the industry to become more sophisticated.”

She declined to provide earnings guidance ahead of the group’s H1 FY2026 results expected in August, but said that the company’s three key business segments are designed to be “countercyclical” to one another.

During periods when the economy is uncertain, the trading, pawnbroking, and moneylending businesses tend to see stronger demand, noted Yeah. Meanwhile, the retail segment is stronger when consumer confidence is high.

Following ValueMax’s 2013 stock market debut, pawnbroking was the highest profit contributor until FY2021, when it was overtaken by the moneylending division. But by FY2025, however, the retail and trading business has overtaken both divisions.

For the six months ended Dec 31, 2025, ValueMax posted a 14 per cent increase in net profit to S$54.1 million, from S$47.4 million in the same period a year earlier.

The group’s pawnbroking segment contributed 11.5 per cent or S$32.8 million to the topline while moneylending contributed 11.2 per cent or S$31.8 million.

Meanwhile, retail and trading of jewellery and gold accounted for 77.3 per cent or S$220.2 million of total revenue.

The growth of the group’s retail and trading segment comes against the backdrop of strong investment demand for gold in Singapore and the region. Gold prices surged more than 60 per cent in 2025, its strongest annual performances since 1979.

In this context, Yeah noted that the company has had strong demand for tax-exempt LBMA (London Bullion Market Association) 999.9 Pamp Suisse bars, while the amount of investment-grade gold in Singapore is growing.

ValueMax acts as a business to business gold aggregator, buying gold from consumers, pawn shops, jewellery stores and other dealers. It then works directly with refiners to produce investment-grade bullion bars.

Yeah acknowledged that while the company’s reputation has historically been rooted in pawnbroking, it now intends to build its profile as a customer-facing bullion retailer to capitalise on the rising demand for investment-grade gold.

“It will be a little tough, but we will try to build that up,” she added.

ValueMax currently employs more than 400 staff and operates 51 pawnbroking and retail outlets, as well as two moneylending shops in the Republic.

Beyond Singapore, ValueMax’s associate company Well Chip operates 32 outlets. While the Bursa Malaysia-listed associate’s operations are primarily anchored in Johor, it expanded its reach last year by acquiring three pawnshops in Perak.

Yeah noted that the company “certainly” intends to continue its expansion across the causeway, while keeping its business concentrated in Singapore.

As for the rest of South-east Asia, she said, the group is “still exploring opportunities”, but obtaining pawnbroking licences across different jurisdictions is a challenge.