Henry Lau re-elected STA chairman for 2024-2025 term

KUCHING: Dato Henry Lau Lee Kong has been re-elected as Sarawak Timber Association (STA) chairman for the 2024-2025 term.

This marks Lau’s second term as chairman of the association. He is joined by Dato Sri Patrick Wong Haw Yeong and James Ho Yam Kuan who will serve as STA vice chairmen.

STA’s annual general meeting (AGM) yesterday saw the election of 34 council members together with 12 permanent council members to form the STA council for the new term.

Also re-elected as STA office bearers were Wong Ting Chung and Philip Choo Kwong Hui, who remain as honorary secretary and honorary treasurer respectively.

Nine committee chairpersons were also elected to form the Management Committee for the term 2024 and 2025.

They are Wong Ting Chung (Hill Logging), Adeline Lau Kor See (Log Marketing), Joseph Lau Ching Hoo (Forest Plantation), Yek Siew Liong (Furniture and Other Woodworking), Philip Law Buong Hoo (Moulding), Datuk James Ling Lu Kiong (Panel Products), Datin Sri Annie Wong Haw Bing (Sawmilling), Diana Lau Kor Ping (Swamp Logging), and Stephen Hii Hium Ung (Timber Products Marketing).

Earlier, in a speech read by Ting Chung, Lau said STA was concerned over the escalating costs associated with the continuous maintenance of certified forest management units (FMUs).

He said a new directive mandating certified FMUs to contribute to corporate social responsibility through a cess of RM15 per cubic metre will take effect from July 1 this year.

“While we acknowledge the significance of such contributions for the betterment of Sarawak’s communities, we advocate for transparency in how this cess is utilised.

“STA actively seeks to participate in the discussion regarding the allocation of these funds,” he said.

Lau said it was imperative to recognise that this unavoidable cost will inevitably translate into higher selling prices for both international and domestic buyers, affecting downstream sector members particularly.

“Consequently, downstream sector members will be compelled to adjust their prices, further challenging the competitiveness of our timber and timber products in markets already strained by the state sales tax (SST).

“The SST, ranging from 1 per cent to 2.5 per cent, was implemented on June 1, 2023, affecting selected timber products outside Sarawak including sawn timber, veneer, wood chips, fibreboard, particleboard, and plywood,” he said.

He also said the decision to use Cost and Freight (CNF) value in determining SST starting March this year had sparked concerns among members.

“Would it not be simpler to calculate SST based on the value indicated on the invoice, regardless of whether it is CNF or FOB (Free on Board)? After all, both Section 15(d) of the State Sales Tax Ordinance, 1988, and Regulation 19H stipulate that the sales value for timber products exported or sold externally shall be the price of goods stated in the contract or invoice.

“The impact of these financial burdens is starkly evident in the declining export value of timber and timber products. Despite a robust RM3.947 billion recorded in 2022, the export value plummeted to RM3.141 billion in 2023, signifying a tangible loss of competitiveness in our industry,” he said.

Lau said effectively competing in international markets was paramount and this required immediate attention.

“The escalating costs within the timber industry pose a formidable challenge that cannot be ignored. From production to transportation, each facet of our operations requires meticulous review to identify cost-saving measures without compromising on the quality and sustainability of our products.

“This development not only jeopardises our ability to effectively compete in international markets but also poses a serious threat to our initiatives in market development and expansion, both domestically and internationally, essential for sustaining the longterm viability and ensuring the continuous growth of timber trade of Sarawak,” he said.