New licensing scheme legalizes traditional gold panning while prioritizing residents and environmental safeguards
Kelantan is turning a long-standing informal activity into a regulated economic opportunity, offering residents a legal pathway to earn income through traditional gold panning.
Legalizing a Traditional Practice
Starting January 1, the Kelantan state government officially opened applications for manual gold panning licenses, allowing residents to prospect legally on designated state land. The move follows a decision announced during the Kelantan State Legislative Assembly sitting on November 10 last year, signaling a shift from enforcement to regulation of an activity that was previously considered illegal.
Economic Support for Local Communities
According to Bernama, the initiative is aimed at strengthening the local economy while providing additional income opportunities, particularly for lower-income residents. Kelantan Land and Mines director Nik Raisnan Daud said response to the licensing program has been encouraging, with priority given to less fortunate applicants seeking lawful ways to supplement their earnings.
Strict Conditions and Environmental Controls
To minimize environmental damage and community disruption, gold panning under the scheme must be carried out manually without the use of heavy or mechanized equipment. The state government also plans to gazette specific areas where panning is allowed, ensuring activities remain controlled, safe, and environmentally responsible.
Fees, Eligibility, and License Rules
Applicants are required to pay a RM100 application fee, with an additional RM100 annual renewal fee. Licenses are non-transferable, must be renewed yearly, and are available exclusively to Kelantan residents. Further details on approved locations, permitted tools, and enforcement measures are expected to be announced soon.
Regulated Gold Sales
Kelantan Deputy Menteri Besar Datuk Mohamed Fadli Hassan confirmed that all gold obtained through licensed panning must be sold to buyers recognized by the state government. This requirement is intended to maintain transparency, prevent illegal trading, and ensure that the economic benefits remain within the formal system.
Tourism Concerns and Resident-Only Access
When the licensing plan was first announced last year, rivers across Kelantan saw a surge of tourists attempting gold panning, sparking dissatisfaction among locals. While the state is considering future permits for recreational or tourism-based panning, the current framework restricts gold panning activities strictly to Kelantan residents.
Kelantan’s gold panning license program reflects a broader regional trend of formalizing informal economic activities to balance livelihoods, regulation, and environmental protection. For neighboring Indonesia and Singapore, the initiative highlights how resource-based micro-economies can be structured to empower local communities while maintaining oversight and sustainability.
Sources: EN Tempo (2026) , Says (2026)
Keywords: Kelantan Gold Panning, Gold Panning License, Manual Gold Mining, Kelantan Economy, Small Scale Mining
