Sandakan: Sabah Timber Industries Association (STIA) called for urgent intervention of the State and Federal Government to look into the continuous issues of power failure, under voltage and Demand Side Management (DSM) in the Seguntor Industrial area. The association in a statement said Seguntor Industrial area is still facing a huge problem in terms of power failure, power supply quality (under voltage) DSM since year 2009.
They said up to May 22 this year, they experienced 510 hours of power related issues (equals to 21 days). In the year 2011, it was 662 hours (28 days) of power failure and in 2012, 106 hours (four days).
In comparison with year 2012, in 2013, the situation is getting worse despite the announcement from Sabah Electricity Sdn Bhd (SESB) and relevant Ministry that initiatives to improve the situation is undertaken but things are getting worse and the companies are suffering millions of ringgit due to increment in production cost, spare parts replacement and loss of competitiveness even with the neighboring producers in West Malaysia.
Besides SESB's power failure problem, lack of availability and high cost of raw material and labour is also causing the industry to suffer tremendously.
The situation is further aggravated by high transport cost and other port charges but there is no programme to upgrade the ports facilities and shipping/transportation cost to various destination remain very high.
All these cost and failure of the government to back up the industry is causing more mills to close down or moving out from Sandakan, even from Sabah.
Thus, they called for an immediate visit by the Industrial Development Minister to Seguntor ITC area, urging him not to send officers as this was done many times and issues are still not resolved, adding that this will enable the Minister to understand the problem on the ground and look for solutions to ensure issues can be resolved.
They also want SESB issues to be handled and settled by the new Energy Minister without further delay and no more excuses to be given by SESB as they should be the service provider and should know what to do.
SESB must have proper planning, checking and problem solving system.
Incentive and grant, they said, should be given to locally owned companies to cover the losses and to sustain in the business by MIDA, MITI, MTIB and other related government agencies.
They also urged that the Seguntor Integrated Timber Complex should be made to become more attractive so that the investors' confidence to invest further will be restored to bring back the status of Seguntor ITC area as the top industrial complex in Sandakan.
The Association said that the ITC Seguntor area should be developed as Wood Based Industrial Cluster as part of Sabah's Development Corridor so that facilities in the said area can be further upgraded by the government.
They said to solve the insufficient infrastructure development in Sandakan, certain measures should be taken namely, to complete the drainage system in the whole ITC Seguntor area, to provide complete street light facilities at Seguntor road as currently part of area is not provided with this facility at all, household waste collecting system by MPS improved and that roads be completely upgraded into asphalt road.
Towards this end, they hoped the Chief Minister will personally listen to the problem faced by companies particularly in the Seguntor Integrated Timber Complex and all the timber industry players in Sabah.
