Latest news with #SabahTimberIndustriesAssociation
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
10-07-2025
- Business
- Daily Express
STIA urges stronger support for Sabah industrial tree plantations
Published on: Thursday, July 10, 2025 Published on: Thu, Jul 10, 2025 By: Hayati Dzulkifli Text Size: KOTA KINABALU: The Sabah Timber Industries Association (STIA) has called on the State Government to strengthen policies and offer incentives to boost Industrial Tree Plantation (ITP) development, which still falls short of the 400,000-hectare target, standing at 183,634 hectares as of 2024. STIA President Tan Peng Juan said ITPs are critical to ensuring a sustainable timber resource and reducing pressure on natural forests. He urged support for companies developing ITPs and manufacturers using plantation timber, noting the need for appropriate machinery to process plantation-grown logs. He also raised concern over the influx of low-grade imported plywood and said STIA is working with the Forest Research Centre to establish a formaldehyde testing lab to ensure product safety standards. The association also pledged to monitor global efforts to list Shorea species under CITES Appendix II, and to ensure compliance with the EU Deforestation Regulation (EUDR), noting recent engagements with EU officials in Brussels. On national policy, STIA emphasized the need to retain Sabah's own TLAS framework amid a federal proposal to harmonize certification systems. Employment contract stamp duty issues were also flagged, with STIA working with SEA to resolve discrepancies in the LHDN's online system. Tan, recently elected President of the Malaysian Timber Association (MTA), said MTA serves as the unified voice for the industry, driving engagement with stakeholders on sustainability, innovation, and global advocacy. * Read full report in tomorrow's print paper or log in or sign up for e-paper and premium online news access. * Follow us on Instagram and join our Telegram and/or WhatsApp channel(s) for the latest news you don't want to miss. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Daily Express
25-05-2025
- Business
- Daily Express
POIC Lahad Datu Port offers support
Published on: Sunday, May 25, 2025 Published on: Sun, May 25, 2025 Text Size: The POIC Lahad Datu Port. LAHAD DATU: POIC Lahad Datu Port is offering its facilities as an alternative for traders and shippers in the State's east coast who have been affected by congestion at Tawau Port. The port, located within POIC Lahad Datu Industrial Park, is positioning itself as a ready and convenient option for cargo movement. 'We are seeking to clear up what we believe to be some gaps in understanding POIC's port capacity and its commitment to complementing trade, particularly among port users, including the Sabah Timber Industries Association (STIA),' said Datuk Fredian Gan, Group Chief Executive Officer of POIC Sabah Sdn Bhd. He said the State-owned company develops and operates the port, which includes dedicated terminals for container cargo, liquid bulk such as crude palm oil and dry bulk cargo including fertilisers. Subscribe or LOG IN to access this article. Support Independant Journalism Subscribe to Daily Express Malaysia Access to DE E-Paper Access to DE E-Paper Exclusive News Exclusive News Invites to special events Invites to special events Giveaways & Rewards 1-Year Most Popular (Income Tax Deductible) Explore Plans Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Borneo Post
24-05-2025
- Business
- Borneo Post
POIC Lahad Datu Port offers support to east coast traders
Gan LAHAD DATU (May 24): The ports at POIC Lahad Datu industrial park here are a ready and convenient alternative to merchants and shippers in the east coast of Sabah. Traders troubled by congestion at the Tawau Port can look to the POIC Lahad Datu Port as their port of choice. 'We are seeking to clear up what we believe to be some gaps (in understanding POIC's port capacity and its commitment to complementing trade) with the port users, including the Sabah Timber Industries Association (STIA),' said Datuk Fredian Gan, the Group Chief Executive Officer of POIC Sabah Sdn Bhd. The state-owned company, POIC, develops and operates the POIC Lahad Datu Port, which has dedicated terminals for container cargo, liquid bulk cargo such as crude palm oil, and dry bulk cargo including fertilizers. Users of the Tawau Port, managed by Sabah Ports Sdn Bhd have recently been affected by handling congestion at its container terminal due to equipment breakdown. 'The breakdown and the resulting congestion are unfortunate. In the interim, we (POIC Lahad Datu Port) like to offer ourself as an alternative,' said Gan. The POIC port, situated within the industrial park, has been operational for over a decade. It commenced operations in 2013 with the dry and liquid bulk terminals, followed by the container terminal in 2019. On 29th June 2022, the port was officially declared a public port which opened access to regional and international shipping activities. Investors at POIC Lahad Datu view the port-within-a-park concept as a unique advantage for the efficient movement of goods. 'We have an experienced port crew operating an excellent set of port facilities,' said Gan; alluding to recent handling of super heavy-duty, containerised batteries for the 100MWno Battery Energy Storage System of the Sabah Electricity Sdn Bhd. The system, placed at Dam Road, Lahad Datu, is targeted to begin operation this June.
Daily Express
23-05-2025
- Business
- Daily Express
Mounting losses over inaction
Published on: Friday, May 23, 2025 Published on: Fri, May 23, 2025 Text Size: Tan (left) and cargo containers piling up at the Tawau Port. Kota Kinabalu: Timber exporters in Sabah are facing escalating financial losses as operational issues at Tawau Port remain unresolved, despite repeated assurances from authorities that repairs would be completed by this week. The Sabah Timber Industries Association (STIA) expressed frustration, Thursday, as promises made during a high-level stakeholder meeting on May 14 have not materialised, leaving the industry in continued crisis. Following a meeting with Deputy Chief Minister III Datuk Shahelmey Yahya last week, industry players were assured that crane repairs at Tawau Port would be completed and full operations would resume by May 21. However, as at press time, the promised restoration has not happened. 'There has been no positive official update on the revised timeline,' said STIA President Tan Peng Juan. 'This ongoing inaction has further strained industry players and heightened frustrations among exporters who continue to face costly delays,' he said. Advertisement The port's problem stems from the breakdown of its only two operational cranes, with one remaining non-functional for over a year. This has rendered Tawau Port virtually inoperable, creating a bottleneck for the State's timber trade. The situation has deteriorated, with 87 containers currently stranded at the port and another 99 awaiting shipment. The congestion has become so severe that at least two vessels have decided to delay or skip Tawau port entirely over the past three days. This operational paralysis is forcing exporters to seek costly alternatives. Many are now transporting containers to Kota Kinabalu at a steep cost of RM4,000 per container, escalating production expenses. Sabah Ports Sdn Bhd's proposal to redirect shipments to Sandakan Port has been rejected by the association as impractical. STIA argues that Sandakan Port cannot handle the additional cargo volumes, while the high trucking costs make the option financially prohibitive. Transportation costs to Sandakan are about RM3,000 per 40-foot container and RM2,000 per 20-foot container, excluding additional expenses such as customs documentation, container movement fees and other discharge costs. The port disruption is affecting both outbound and inbound cargo, creating broader economic challenges for Tawau. With supply chains stalled and trade activities hampered, local businesses and residents are bearing the brunt of the operational failures. Exporters are incurring additional demurrage and container storage costs, while buyer confidence continues to erode due to persistent delays. STIA called for immediate action from Sabah Ports, demanding transparent updates on crane repair status and realistic timeline, deployment of temporary equipment to alleviate congestion and weekly progress reports to stakeholders for accountability. 'Without urgent intervention and concrete progress, Tawau Port risks long-term reputational damage and further deterioration in trade activity,' said Tan. The association expressed appreciation for Shahelmey's commitment to monitor the situation closely, while urging Sabah Ports Sdn Bhd to take serious remedial action. * 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
