Demand by the jewellery market of China has been forecast to soar 35 per cent in the next five years as Chinese locals get to increase their financial worth with a growing disposable income.

In a report by Bernama, the Malaysia External Trade Development Corporation (Matrade) said China's imports of jewellery from Malaysia last year amounted to $0.9 million for the very first time. Matrade attributed the growth in the export figures to China's booming domestic demand for gold jewellery, particularly from the second and third tier cities.

Gold jewellery has been traditionally given as gifts at weddings and births by the Chinese to connote good luck and prosperity to the recipient. Moreover, the rising awareness of consumers on gold being one of the best anti-inflation asset has further lifted demand for the precious safe haven yellow metal.

"Malaysian companies wishing to export jewellery to China would need to link up with buyers who have permits to import these items," Matrade said, noting the trend will continue for the next five years as economic growth pushes gold sales further.

"It is advantageous to export jewellery from Malaysia, which currently enjoys zero duty for exports of jewellery items under the China-Asean Free Trade Area," Matrade said.