Sabah Timber Industries Association urges government to up timber planting

Daily Express

11-07-2025

Published on: Friday, July 11, 2025
Published on: Fri, Jul 11, 2025
By: Hayati Dzulkifli Text Size: Tan said robust support mechanisms are needed to create a conducive environment for ITP development, and providing crucial incentives to encourage investments that secure Sabah's timber industry for the long term. Kota Kinabalu: Sabah Timber Industries Association (STIA) has called on the State government to reinforce policies and introduce incentives to accelerate development of Industrial Tree Plantations (ITP), which falls short of 400,000-hectare target. STIA President Tan Peng Juan said ITP has critical role in securing a sustainable raw material base for Sabah's timber sector. He said STIA has raised its concern on the slow progress of ITP initiatives in the State while recognising ITP as a crucial pillar of Sabah's long-term strategy to ensure a reliable and renewable timber resource base. He added establishment of ITP is aimed at creating a reliable and renewable timber resource based that help reduce pressure on natural forests while supporting long-term growth of domestic timber manufacturing and value-added downstream industries. 'Based on the Sabah Forestry Department's latest annual report, it recorded that majority of plantation logs harvested in Sabah are derived from other agencies and smallholders, rather than from the designated ITP areas within the Sustainable Forest Management Licence Agreement (SFMLA). 'As of 2024, a total of 183,634 hectares of ITP areas have been established statewide. While this marks significant progress, it still falls short of the 400,000-hectare target set under the Forest Plantation Development Action Plan. 'This gap underscores the urgency to intensify plantation efforts over the coming years,' Tan said this during the STIA's Annual General Meeting (AGM), here, recently. The AGM, presided by Tan, discussed various issues particularly on current market situation, technical requirements faced by the industry and mitigation of compliance. Tan said equally important is ensuring that downstream players are adequately equipped with the appropriate machinery and processing capabilities to handle the unique characteristics of plantation-grown logs, which differ in characteristics from natural forest timber. To achieve this, he said there is an urgent need for stronger support mechanisms that can incentivise the local utilisation of plantation timber. He reiterated the STIA's call on the State Government to fully support ITP initiatives by reinforcing existing policies and to incentivise companies actively developing ITP areas as well as manufacturers using plantation timber. Tan said robust support mechanisms are needed to create a conducive environment for ITP development, and providing crucial incentives to encourage investments that secure Sabah's timber industry for the long term. He said the AGM resolved to formally reiterate these points to the State Government, seeking its full commitment and support to drive the success of industrial tree planting in Sabah. He also assured that STIA will work with the government to ensure the Forest Plantation Action Plan policy is successful as resources derived from ITP is not only as supplementary resource for downstream processing but as alternative to tropical timber in the long run. 'The industry should not depend on topical timber as the global market is moving towards sustainable green resources,' he said. Tan also addressed industry concerns over low-grade plywood imports, warning it could undermine local manufacturers or domestic producers. To tackle this, he said STIA is working with the Forest Research Centre to fast-track the establishment of a laboratory for formaldehyde testing as one of the control measures to regulate importation of timber products. 'STIA agreed to pursue the issue via regulatory provisions through formaldehyde emission controls. 'This measure aims to ensure that all plywood entering the local market meets minimum health and safety standards,' he said. On another issue, Tan said STIA also pledged to continue monitoring global moves to list Shorea species under CITES Appendix II, which could significantly impact Malaysia's timber trade and export regulations. 'The Ministry of Natural Resources and Environmental Sustainability (NRES) recently confirmed no formal proposal currently exists to list Shorea under CITES but said it would keep abreast of developments. 'Both the Ministry and relevant regulatory agencies including timber trade associations will continue to closely follow developments at the global level to ensure that Malaysia's timber industry interests are safeguarded and any future policy shifts are addressed proactively,' he said. Meanwhile, Tan said Sabah Timber Legality Assurance is under review to ensure compliance with new European Union (EU) regulations, particularly the EU Deforestation Regulation (EUDR). 'A revised draft was presented in April 2025 and further discussions with stakeholders were held to incorporate feedback into the review process. 'STIA also recently took part in a Malaysian Timber Council (MTC)- EUDR Mission to Brussels from 17–24 May 2025 which included high-level engagements with EU officials on EUDR implementation, potential impacts of the Shorea listing and other matters affecting Malaysian timber exports,' he said. Another ongoing issue of concern, Tan said is the Ministry of Plantation and Commodities (MPC) move to initiate a proposal to harmonize TLAS frameworks across Malaysia. 'The move is aimed at developing a national TLAS framework. STIA however, emphasized that state-level systems must be preserved due to varying forestry practices and governance structures. On employment matters, Tan said members have been informed about the new Inland Revenue Board (LHDN) policy under which all written employment contracts signed from 1 January 2025 are subject to RM10 stamp duty. While late-stamping penalties will be waived for employment contracts finalized by 31 December 2025, he said STIA noted that the current online system has yet to reflect this waiver and continues to generate automatic penalty charges. To address this discrepancy, Tan said STIA is working closely with the Sabah Employers Association (SEA) to seek clarification and resolution with the Inland Revenue Board (LHDN). 'STIA will continue to play an active role in labour policy deliberations as a member of the Sabah Labour Advisory Council (SLAC); the official tripartite consultative body established under the Sabah Labour Ordinance (Cap. 67) to facilitate dialogue between employers, employees and the government. 'Through its representation in the council STIA serves as a key industry voice, contributing inputs on proposed amendments to labour regulations that impact the timber sector in Sabah,' he said. At a separate occasion, Tan Peng Juan was elected as the President of Malaysian Timber Association (MTA) for the 2025–2027 term during the MTA Annual General Meeting held on 30 June 2025. Its new office bearers are Farosham Naizamohideen from Persatuan Pengusaha Kayu Kayan dan Perabot Bumiputera Malaysia (PEKA) as the Vice-President, followed by Honorary Secretary Ng Kay Yip from Malaysian Wood Industries Association (MWIA) and Honorary Treasurer Annie Ting Yien Ding from Sarawak Timber Association (STA). Tan said MTA is the unified voice of Malaysia's timber industry at the federal, state and international levels as it represents major regional timber associations and serves as a central platform for industry collaboration. 'MTA actively engages with government bodies to shape legislation and regulations that benefit the timber sector. 'It also provides members with insights on market trends, trade opportunities, environmental sustainability, reforestation and technological innovation. 'To ensure the industry's interests are represented in national policymaking, MTA nominates industry experts to serve on various boards and committees,' he said while adding that internationally, MTA collaborates with global organizations such as the Coalition on Sustainable Timber to coordinate advocacy efforts globally. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia