STIA: Simplify timber import procedures

sunandaC

New member
The Sabah Timber Industry Association (STIA) hopes the Government will immediately formulate and implement effective policies to assist the industry.

It suggested reduction of volume of logs being exported and at the same time to encourage importation of raw materials to offset the shortage domestically.

Importation procedures should be simplified and free from all charges including the current RM10 per M3 Forestry Department Inspection Fee.

Its President, Datuk James Hwong, said the STIA called for a firm commitment from the State Government to promptly work towards a demand and supply programme that is feasible, workable and effective to support the local processing industry in Sabah.

He said while the STIA congratulates the State Government for its forest restoration and conservation efforts, the industry must not be left alone as both should "grow" in chorus to ensure sustainability to both the forest as well as the processing industry.

"What good are the timber trees when mature 15 to 20 years later if there is no local downstream processing industry?" he asked.

He further asked whether Sabah is preparing to become a major exporter of sustainable logs from year 2026 onwards.

He said the problem of raw material supply is undeniably the major obstacles faced by the timber industrialists in Sabah.

He said in reply to a statement by Sabah Forestry Department Director, Datuk Sam Mannan, that the disparity of timber royalties is not a subsidy to the industry.

Hwong said the disparity was introduced to induce development of the downstream timber industry locally.

According to him, it is a common trade practice whereby certain sizes and species of logs in a parcel that are not of export quality are left behind for local processing.

He said it is to offset high cost of exporting these logs that normally do not fetch extremely high price due to its inferior quality.

"The STIA fully supports this policy and considered it as an incentive for going downstream and actively encourage each member to participate in this programme," he said.

He said the policy is also being implemented to attract local and foreign investment into Sabah as part of the Sabah Industry Master Plan (SIMP).

This move, Hwong said, has widened the base of Sabah's timber products to overseas markets from single item of round logs to all wood products such as sawn-timber, mouldings, plywood, veneer and other panel products, furniture and other finished products.

He said the policy of further value-added downstream processing development cannot achieve its desired target mainly due to the inconsistent implementation of Government policy and insufficient administrative and infrastructure support to the industry.

Regarding the State Government's investment policies such as the SIMP, Sabah Industrial Action Policy and Halatuju, among others, he said these policies have attracted investors from all over the world.

In 2009, the total foreign investment in the wood based industry amounted to RM1.014 billion.

These investments, he said, cannot be taken as a private decision, but as a genuine commitment by the private sector in response to the Government's industrialisation programme.

"The Government, therefore, does have a responsibility as an initiator of these policies and takes its rightful role and continue to support implementation effort of the policies."

Lack of infrastructure support, logistics and transportation facilities such as ports and shipping are the major contributing factors to the high cost of production and failure of these gigantically ambitious yet half hearted Government investment policies.

Despite all these setbacks, Hwong said the investors who have committed persevere to safeguard their investment with a hope of getting the much-needed backup and support from the State Government.

"Performance of the industry over the years is proof that the wood based industry is significant to economic development of this State," he said.

The overall economic gain in value he said in fact refers to the form of the spin of effect of this important industry, which does not solely go to the private pocket of the millers.

The economic benefits are in the form of transport and warehousing industry, shipping and forwarding services, the construction and infrastructure development of factories, among others, he said.

He said many locals and foreign investors accepted the invitation by the State Government to invest in Sabah.

Most of them he said invested heavily in the industry.

Up to 2009, he said the total investment in the timber industry is about RM4.815 billion. The value of export timber in 2006 he said was RM4.33 billion.

"These figures signify the important of the wood based industry and the Association strongly feels that the Government should continue to support the development of this industry," he said.

He said the downstream value added wood based industry continues to be "static" due to the inconsistent policies and lack of support from the State Government.

"There is no assistance from the Government in terms of assisting the industry to develop new products, new markets and promoting and marketing of timber products and provision of training centres for skilled workers, among others," he said.

The industry, he said, was left to fend for its own survival.

He said the numerous requests for assistance received no response at all from the Government.

Problems such as human resources availability, raw materials, rising cost and lack of infrastructure support he said has resulted in the industry originally promoted as an "infant industry" remains an infant.

Hwong said it is not that the industry refuses to grow up, but that policies of the State Government in handling the wood based industry is basically forcing the industry to stay static.

He said many members who ventured into processing of value added products need help from the Government.
 

rosemarry2

MP Guru
The Sabah Timber Industry Association (STIA) hopes the Government will immediately formulate and implement effective policies to assist the industry.

It suggested reduction of volume of logs being exported and at the same time to encourage importation of raw materials to offset the shortage domestically.

Importation procedures should be simplified and free from all charges including the current RM10 per M3 Forestry Department Inspection Fee.

Its President, Datuk James Hwong, said the STIA called for a firm commitment from the State Government to promptly work towards a demand and supply programme that is feasible, workable and effective to support the local processing industry in Sabah.

He said while the STIA congratulates the State Government for its forest restoration and conservation efforts, the industry must not be left alone as both should "grow" in chorus to ensure sustainability to both the forest as well as the processing industry.

"What good are the timber trees when mature 15 to 20 years later if there is no local downstream processing industry?" he asked.

He further asked whether Sabah is preparing to become a major exporter of sustainable logs from year 2026 onwards.

He said the problem of raw material supply is undeniably the major obstacles faced by the timber industrialists in Sabah.

He said in reply to a statement by Sabah Forestry Department Director, Datuk Sam Mannan, that the disparity of timber royalties is not a subsidy to the industry.

Hwong said the disparity was introduced to induce development of the downstream timber industry locally.

According to him, it is a common trade practice whereby certain sizes and species of logs in a parcel that are not of export quality are left behind for local processing.

He said it is to offset high cost of exporting these logs that normally do not fetch extremely high price due to its inferior quality.

"The STIA fully supports this policy and considered it as an incentive for going downstream and actively encourage each member to participate in this programme," he said.

He said the policy is also being implemented to attract local and foreign investment into Sabah as part of the Sabah Industry Master Plan (SIMP).

This move, Hwong said, has widened the base of Sabah's timber products to overseas markets from single item of round logs to all wood products such as sawn-timber, mouldings, plywood, veneer and other panel products, furniture and other finished products.

He said the policy of further value-added downstream processing development cannot achieve its desired target mainly due to the inconsistent implementation of Government policy and insufficient administrative and infrastructure support to the industry.

Regarding the State Government's investment policies such as the SIMP, Sabah Industrial Action Policy and Halatuju, among others, he said these policies have attracted investors from all over the world.

In 2009, the total foreign investment in the wood based industry amounted to RM1.014 billion.

These investments, he said, cannot be taken as a private decision, but as a genuine commitment by the private sector in response to the Government's industrialisation programme.

"The Government, therefore, does have a responsibility as an initiator of these policies and takes its rightful role and continue to support implementation effort of the policies."

Lack of infrastructure support, logistics and transportation facilities such as ports and shipping are the major contributing factors to the high cost of production and failure of these gigantically ambitious yet half hearted Government investment policies.

Despite all these setbacks, Hwong said the investors who have committed persevere to safeguard their investment with a hope of getting the much-needed backup and support from the State Government.

"Performance of the industry over the years is proof that the wood based industry is significant to economic development of this State," he said.

The overall economic gain in value he said in fact refers to the form of the spin of effect of this important industry, which does not solely go to the private pocket of the millers.

The economic benefits are in the form of transport and warehousing industry, shipping and forwarding services, the construction and infrastructure development of factories, among others, he said.

He said many locals and foreign investors accepted the invitation by the State Government to invest in Sabah.

Most of them he said invested heavily in the industry.

Up to 2009, he said the total investment in the timber industry is about RM4.815 billion. The value of export timber in 2006 he said was RM4.33 billion.

"These figures signify the important of the wood based industry and the Association strongly feels that the Government should continue to support the development of this industry," he said.

He said the downstream value added wood based industry continues to be "static" due to the inconsistent policies and lack of support from the State Government.

"There is no assistance from the Government in terms of assisting the industry to develop new products, new markets and promoting and marketing of timber products and provision of training centres for skilled workers, among others," he said.

The industry, he said, was left to fend for its own survival.

He said the numerous requests for assistance received no response at all from the Government.

Problems such as human resources availability, raw materials, rising cost and lack of infrastructure support he said has resulted in the industry originally promoted as an "infant industry" remains an infant.

Hwong said it is not that the industry refuses to grow up, but that policies of the State Government in handling the wood based industry is basically forcing the industry to stay static.

He said many members who ventured into processing of value added products need help from the Government.

Hey buddy,

Here I am sharing Forest Industry Economic Impact, so please download and check it.
 

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