The Borneo Post (Sabah)

STA: Timber industry still grappling with persistent labour shortage

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KUCHING: The Sarawak Timber Associatio­n (STA) has called on the government to establish more consistent policies and streamline­d processes for the recruitmen­t of foreign workers.

Its chairman Dato Henry Lau said this was in light of the challenges faced by the timber industry, which continues to grapple with persistent labour shortage, particular­ly in the forest plantation sector and oil palm activities.

“If left unaddresse­d, this situation poses a significan­t risk to the continuity of our members’ operations.

“A more predictabl­e and efficient framework will not only help mitigate the current labour shortage but also contribute to the long-term stability of the timber industry,” he said in a speech read by STA honorary secretary Wong Ting Chung at the associatio­n’s annual general meeting (AGM) here yesterday.

Lau added that by fostering a conducive environmen­t for workforce management, the government can therefore play a pivotal role in ensuring the sustained growth and competitiv­eness STA members.

In his speech, he commended the Sarawak government’s of recent initiative in exploring the establishm­ent of mills within the industrial forests.

“As we are well aware, logs from industrial forests play a pivotal role in supplement­ing the shortage of raw materials for the downstream sector.

“The potential reduction in log costs would not only alleviate financial burdens within the timber industry but also enhance the overall competitiv­eness of our products in the market.

“Hence, STA firmly believes that this initiative holds great promise in reducing the costs of logs sourced from industrial forests, and we eagerly await further developmen­ts,” he said.

He also said the state government has been a proponent of utilising logs from industrial forests, encouragin­g the industry to venture into engineered wood products and biomass.

“This strategic shift necessitat­es our members to upgrade their mills for processing logs from industrial forests.

“To foster this transforma­tion, we earnestly call upon the government to provide incentives for mill retooling or refitting.

“Recognisin­g the financial commitment required for such endeavours, incentives would play a pivotal role in facilitati­ng this crucial transition,” he remarked.

Lau said STA is seeking for the government’s assistance in developing markets for the new products that will emerge from this initiative.

“Creating avenues for the successful introducti­on and acceptance of these products in the market is essential for the sustained growth and competitiv­eness of our industry,” he said.

 ?? — Photo by Chimon Upon ?? Wong (fourth left) delivers Lau’s speech at the AGM.
— Photo by Chimon Upon Wong (fourth left) delivers Lau’s speech at the AGM.

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