Sarawak Timber Association urges Putrajaya to review industry policy
KUCHING (August 5): The Sarawak Timber Association (STA) through the Sarawak Timber Industry Development Corporation (STIDC) has filed an appeal with the federal government regarding industry dissatisfaction with the decision of the first of allow only accumulated business losses to be used as a corporate tax reduction item for up to 10 years.
Yesterday Deputy Minister of Plantations and Commodities Datuk Willie Mongin held an engagement session with Sarawak Timber Association (STA) at his office in Kuala Lumpur to discuss related issues and get feedback from the Sarawak’s timber industry.
STA Forest Plantation Committee Chairman Peter Ling, Managing Director Annie Ting, STIDC Managing Director Datu Hashim Bojet and Deputy Managing Director Haluyah Awi were present at the session, along with representatives from the Ministry of Finance ( MoF), the National Timber Industry Board (MTIB) and the Malaysian Timber Council (MTC).
During the engagement session, the Ministry of Plantation and Commodity Industries noted that the Ministry of Finance reviewed the policy and extended the restriction period from seven to 10 years when announcing the 2022 budget for all industries.
“At the same time, the Ministry of Finance also announced that a detailed study will be carried out for sectors or industries that expect long-term results (long gestation period) such as plantation forestry, logging, l agriculture, commodities as well as large-scale activities. infrastructure projects such as power plants and highways,” he said.
He said that under the National Agricultural Products Policy 2021-2030 (DAKN 2030), the aspiration was to modernize and increase the resilience of the country’s timber industry.
“The target export market value for wood and wood products in 2030 is RM32.8 billion, which means that 70% of exports are made up of downstream products.
“In 2021, the timber industry is the third largest contributor to the country’s agricultural products sector with an export value of timber and timber products of RM22.74 billion.
“Sarawak contributed up to 15% or RM3.53 billion, with plywood, logs and fibreboard as the main exports,” he said.
He said the ministry, through the MTIB, MTC and the Malaysian Timber Certification Council (MTCC), has always been committed to providing consultancy services in the country’s timber industry.
“In this regard, the Government of Sarawak has worked with the MTCC to promote and strengthen the implementation of certification of timber and timber products to increase access to international markets through the Malaysian certification system. (MTCS) which is recognized by the Forest Verification Program. Certification (PEFC),” he said.
The ministry is optimistic that continued cooperation with Sarawak’s stakeholders can further increase the competitiveness of the country’s timber industry to meet the needs and demands of the international market.
“This collaboration will contribute to the sustainability of the country’s timber industry as well as mutual prosperity,” he added.