STIA calls for a total ban on the export of logs
Published on: Thursday, July 02, 2015
Kota Kinabalu: The Sabah Timber Industries Association (STIA) has urged the State Government to consider a total ban on the export of logs derived from natural forest to ensure all timber resources are fully-utilised by the local industry. STIA President Datuk James Hwong (pic) said there was enough local processing capacity to fully utilise the export grade logs and the industry was able to pay for the export grade logs like any foreign buyer. He said the local industry also preferred Sabah logs in terms of costing as there was a significant saving in shipping, transport and handling cost compared to using imported logs.
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The logs in Sabah go direct to the local processing mills and can ensure production of better value-added finished products due to the freshness of local logs, he said. In this respect, STIA called on the government to provide forest production land to the industry for tree plantation purpose. "Tree plantation land should be offered to the industry players as they know best what are the suitable species to be planted for the markets," he said, adding that the government should not over emphasise on collection of revenue from timber but should look at other contribution from the wood- based industry such as provision of employment for local people as well as sustainable usage of raw material. STIA called upon the Ministry of Industrial Development to assist the industry in developing technology transformation and financial support in terms of tariff and tax rebate as well as financial backup.At this juncture, the Association would be seeking an appointment with the Chief Minister to further discuss the proposal to ban log exports.
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This was among the proposals adopted during the STIA's 28th Annual Delegates Conference (ADC) on June 26 here for the government to ensure the continuous existence of the wood-based sector in Sabah.The delegates unanimously agreed that the Association must highlight issues publicly to alert the State Government of the difficult situation the industry has been facing for so many years.
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"The problems persist until today. It is the Association's hope that the State and Federal Government will look into the problems faced by the timber industry," he said. According to him, shortage of raw material has been the biggest single issue affecting the timber industry. Log production from natural and plantation forest has not been able to fill in the shortage. Last year, the log production from natural forest was recorded at 1.565 million cubic metres while 1.093 million cubic metres were recorded for plantation logs. To ease the shortfalls, local manufacturers have been importing raw material from outside the country but the volume of import was very limited due to the high cost involved. Hwong said the STIA was working closely with the State Government, particularly the State Forestry Department to resolve technical issues as a result of demand for legal and certified timber globally. "The Association is promoting high quality timber being produced in Sabah and ensures efforts undertaken by the State Government to maintain the best forest sustainability policy are reciprocated by the industry by promoting exports of legal and Timber Legality Assurance System (TLAS) compliance products. "Capacity building initiatives are also being undertaken jointly to train the industry players in adhering to global technical requirements for wood products," he said.Hwong said the STIA also hoped for an update on the establishment of the Sabah Logistic Council which had been announced by Deputy Chief Minister Tan Sri Joseph Pairin Kitingan in October last year.The special committee was reportedly to regulate charges imposed by shipping companies transporting goods between ports from Semenanjung Malaysia and Sabah and Sarawak. Stay up-to-date by following Daily Express’s Telegram channel.
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