Latest news with #SFMLA
Daily Express
11-07-2025
- Business
- Daily Express
Sabah Timber Industries Association urges government to up timber planting
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
Daily Express
11-05-2025
- Business
- Daily Express
RM5.3 billion from Sustainable Forest Management License Agreement royalty: Chief Minister
Published on: Sunday, May 11, 2025 Published on: Sun, May 11, 2025 Text Size: Safar (fourth left) presenting the Compliance Certificate to a representative of Jawala Plantations Industries. Kota Kinabalu: Sabah collected RM5.3 billion in timber royalties under the Sustainable Forest Management License Agreement (SFMLA) between 1999 and 2023. Chief Minister Datuk Seri Hajiji Noor said the figure represented an average annual revenue of RM213 million and the SFMLA initiative has created about 40,000 jobs for Sabahans. 'It cannot be denied that some are still sceptical or hold negative views about SFMLA activities in Sabah. However, let us not be influenced by unconstructive opinions or instigations that do not contribute to the progress of Sabah,' he said at the Forestry Appreciation event at Sabah International Convention Centre (SICC) on Friday night. His speech was read by State Secretary Datuk Seri Sr Safar Untong. According to Hajiji, Sabah has been a pioneer in sustainable forest management (SFM) through a smart partnership with the private sector following the introduction of the long-term SFMLA in 1997. 'The sustainable forest management concept has greatly assisted the State Government in managing Sabah's vast forest reserves. It not only contributed to the State's economy through the logging sector and timber industry, but also plays a vital role in improving the living standards of local communities residing near licensed areas. 'To date, approximately 1.4 million hectares of Class II Forest Reserves in Sabah have been licensed to 43 SFMLA concessionaires,' he said. Hajiji said the State Government, through the Forestry Department, conducts an annual progress review of each SFMLA concessionaire. Since its inception, nine licenses have been revoked for failure to comply with the agreement conditions. 'This reflects the seriousness of the State Government in implementing the SFMLA concept. However, a majority of the SFMLA concessionaires have demonstrated their commitment to managing the forest sustainably under their concessions. 'The proof is tonight when 32 SFMLA concessionaires receive the Compliance Certificate for their achievement in the 2024 Annual Work Plan,' he said. The Chief Minister called upon all the SFMLA concessionaires involved in the forest plantation management to intensify their efforts to achieve the planting target in their respective areas. 'This is to ensure our goal under the Forest Plantation Development Action Plan 2022-2036, that is about 18,000 hectares of forest plantation per year could be achieved successfully,' he said. According to him, Sabah received an Appreciation Certificate last March from the Natural Resources and Environmental Sustainability Ministry as the third highest State with newly-gazetted protected areas in Malaysia after Johor and Sarawak from 2021 to 2023. In this respect, Sabah had received RM26.45 million under Phase One of the Ecological Fiscal Transfer (EFT) Fund from the Federal Government. 'The fund would add value to Sabah's effort to increase its Totally Protected Area (TPA) to 30 per cent. Sabah has already gazetted 2.012 million hectares of TPA, which is 27.15 per cent of the State's total area. In line with the 2018 Sabah Forest Policy and Hala Tuju Sabah Maju Jaya Development Plan, he said Sabah now needs about 211,000 hectares to achieve this year's 30 per cent TPA goal. Hence, he was glad to announce that the Forestry Department was preparing a proposal paper to gazette a few more critical protected areas under Section 5A of the 1968 Forest Enactment to ensure the TPA target could be met this year. 'I fully support this effort and hope it can be realised in the near future,' he said. Hajiji also said the amendment to the 1968 Forest Enactment passed in the State Assembly in April this year was apt since it gave the State Government the absolute authority to regulate forest-based carbon credit trading activities. He said with the amendment, forest carbon activity would be regulated according to the terms and conditions that safeguard the State's interest, and any monies or revenue derived from the forest carbon credit activity will go directly to the State. The amendment also gave the Chief Conservator of Forests power to close some of the sensitive forest reserves; to issue permits and impose fees for certain activities in a forest reserve; and to amend penalties for forest offences. 'This amendment, which is in line with the provision under the National Forest Act (Amendment) 2022, would further strengthen forest enforcement in combating illegal extraction of forest resources and enhance forest conservation efforts. Since 2010, 34 arrests for forest reserves encroachment could not be prosecuted in the court because the forest reserve was not closed for public access,' he said. * Follow us on Instagram and join our Telegram and/or WhatsApp channel(s) for the latest news you don't want to miss. * 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
Borneo Post
10-05-2025
- Business
- Borneo Post
Sabah earns RM5.3 billion in timber royalties
Kugan (second from right) presenting the Biodiversity Conservation Partner Award to a representative of Sawit Kinabalu Group.-Information Department photo KOTA KINABALU (May 10): Sabah has collected royalties totaling RM5.3 billion from timber harvests under the Sustainable Forest Management License Agreement (SFMLA) from 1999 to 2023. Chief Minister Datuk Seri Panglima Hajiji Noor stated that this amount translates to an average annual revenue of RM213 million for the state government, while the SFMLA initiative has also created around 40,000 job opportunities for the people of Sabah. 'It cannot be denied that there are still some parties skeptical about the SFMLA's implementation. However, we should not be influenced by negative views that bring no benefit to the state's development,' he said in his speech at the Forestry Appreciation Ceremony at the Sabah International Convention Centre (SICC) on Friday. His speech was delivered by the State Secretary, Datuk Seri Panglima Sr. Safar Untong. According to Hajiji, Sabah has been a pioneer in implementing the Sustainable Forest Management (SFM) concept through long-term collaboration with the private sector since the introduction of the SFMLA in 1997. 'This approach not only contributes to economic gains through the timber and wood industry but also plays a crucial role in environmental conservation and improving the livelihoods of local communities. 'To date, 1.4 million hectares of Class II Forest Reserve have been licensed to 43 SFMLA concession holders,' he said. He added that the state government, through the Sabah Forestry Department, continuously monitors the progress of each concession holder annually, and nine licenses have been revoked since the SFMLA's introduction due to failure to comply with agreement terms. 'Tonight, 32 concession holders received Compliance Certificates for achieving their 2024 Annual Work Plan targets. This demonstrates the strong commitment of the majority of concessionaires to sustainable forest management,' he said. Hajiji also called on all involved parties to intensify forest plantation efforts to meet the target of 18,000 hectares of forest plantations per year, as outlined in the Forest Plantation Development Action Plan 2022–2036. He further announced that Sabah received RM26.45 million under the first phase of the Ecological Fiscal Transfer (EFT) Fund after being recognized as the third-highest state in gazetting new protected areas from 2021 to 2023, after Johor and Sarawak. To date, Sabah has gazetted 2.012 million hectares as Totally Protected Areas (TPA), accounting for 27.15% of the state's total land area. 'To achieve the 30% TPA target this year, Sabah needs an additional approximately 211,000 hectares. 'The Forestry Department is preparing a proposal to gazette several critical protected areas under Section 5A of the Forest Enactment 1968. I fully support this effort,' he said. Meanwhile, Hajiji stated that amendments to the Forest Enactment 1968, approved last April, grant full authority to the State Government to regulate forest-based carbon credit trading activities. He explained that with these amendments, all revenue from forest carbon activities will be channeled directly to the state, in line with conditions safeguarding the people's interests. 'These amendments also empower the Chief Forest Conservator to close parts of sensitive forest reserves, issue permits, impose fees for certain activities, and amend penalties for forestry offenses. 'This aligns with the amendments to the National Forestry Act 2022 and will further strengthen enforcement and combat illegal encroachment on forest resources,' he said. He added that since 2010, 34 cases of forest encroachment could not be prosecuted because the areas were not officially closed to public access. The Chief Conservator of Forests, Datuk Frederick Kugan, presented the 288-page 2024 Annual Report of the Sabah Forestry Department to Safar at the event. Conservation Partner Award was given to seven recipients. Among them were International Society for Mangrove Ecosystems, Sabah Electricity, Sawit Kinabalu Group, St Michael Secondary School, Penampang and The Borneo Post Sabah. KTS Plantation Sdn Bhd was among the companies receiving Compliance Certificate.
New Straits Times
09-05-2025
- Business
- New Straits Times
Forest carbon credit revenue will go straight to state, says Hajiji
KOTA KINABALU: Any revenue generated from forest carbon credit activities will go directly to Sabah, said Chief Minister Datuk Seri Hajiji Noor. He said that the recent amendment to the 1968 Forest Enactment was timely. "It grants the state government full authority to regulate forest-based carbon credit trading activities. "These activities will be regulated under terms and conditions that safeguard the state's interests," he said at the Forestry Appreciation event at the Sabah International Convention Centre last night. His speech was delivered by state secretary Datuk Seri Safar Untong. Hajiji also said the amendment empowered the forests chief conservator to close certain sensitive forest reserves, issue permits, impose fees for specific activities in forest reserves, and amend penalties for forest offences. He added that since 2010, 34 arrests for encroachment into forest reserves could not be prosecuted because the affected reserves were not officially closed to public access. "This amendment, in line with the National Forest Act (Amendment) 2022, will strengthen forest enforcement in combating the illegal extraction of forest resources and bolster forest conservation efforts. We hope its implementation can be realised soon," he said. Hajiji also said that Sabah has collected a total of RM5.3 billion in timber royalties under the Sustainable Forest Management Licence Agreement (SFMLA) between 1999 and 2023. This figure represents an average annual revenue of RM213 million for the state, while the SFMLA initiative has also created approximately 40,000 jobs for Sabahans. He also said that the Forestry Department is preparing a proposal to gazette additional critical protected areas under Section 5A of the 1968 Forest Enactment to achieve the 30 per cent Total Protected Area (TPA) target this year. Currently, Sabah has already gazetted 2.012 million hectares of TPA, representing 27.15 per cent of the state's total land area.
Daily Express
09-05-2025
- Business
- Daily Express
Sabah collects RM5.3 billion in timber royalties under SFMLA
Published on: Friday, May 09, 2025 Published on: Fri, May 09, 2025 Text Size: For illustrative purposes only. KOTA KINABALU: Sabah has collected RM5.3 billion in timber royalties from 1999 to 2023 through the Sustainable Forest Management License Agreement (SFMLA), said Chief Minister Datuk Seri Hajiji Noor on Friday. He said the initiative, which averages RM213 million in annual revenue, has also created about 40,000 job opportunities for locals. Hajiji, whose speech was delivered by State Secretary Datuk Seri Safar Untong, urged the public not to be swayed by sceptical views that hinder the state's progress. Sabah, a pioneer in sustainable forest management since 1997, has licensed 1.4 million hectares of Class II Forest Reserves to 43 SFMLA concessionaires. Nine licenses have been revoked for non-compliance, while 32 concessionaires were awarded Compliance Certificates for their performance in the 2024 Annual Work Plan. * Follow us on Instagram and join our Telegram and/or WhatsApp channel(s) for the latest news you don't want to miss. * 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
