STIDC launches plan for value-added, high income timber industry
KUCHING: Sarawak Timber Industry Development Corporation ( STIDC) launched its ‘ STIDC Strategic Planning Plan, 20162020’ as part of efforts to establish a value-added high income sector in the state’s timber industry.
Second Minister of Resource Planning and Environment Datuk Amar Awang Tengah Ali Hasan said among matters highlighted in the plan included developing an export-oriented furniture industry, value- added panel industry and pulp and paper industry.
“In line with STIDC’s mission of ‘ To regulate and facilitate the advancement of an innovative timber industry’, we therefore have to come up with an action plan to establish a high-income, value-added industry,” he said at an assembly held at STIDC seminar hall in Wisma Sumber Alam here yesterday.
Awang Tengah, who is also STIDC chairman, said through network policies, incentives and initiatives in the five years under the 11th Malaysia Plan, the sector’s export revenue was expected to grow from RM8 billion to RM10 billion a year.
“This long-term strategy to increase the export earnings ought to be mobilised to maximise the use of existing raw resources from natural forests and to reduce timber export quota from 40 per cent to 30 per cent, in force since June 2016.”
Awang Tengah also noted that planning and development of infrastructure were crucial components that ought to be given emphasis in order to attract more large-scale foreign investors to the state.
He said foreign investment in downstream wood-based industries would be able to boost export income surpassing RM8 billion in the 11th Malaysia Plan.
“Apart from that, preparation of supporting industries is also very critical to complete the value chain in the downstream timber industry particularly large-scale and export- oriented furniture industry.”
He said one of STIDC’s strategic plans for this was to fully take over the Acacia Forest Plantation ( Ladang Hutan Acacia), namely Sarawak Planted Forest (SPF).
“The acquisition of SPF aims to accommodate raw materials required by the local timber industry. This effort is also important to transform Sarawak as a production hub for wood products and furniture from acacia wood in Malaysia.”
He also said research and development ( R& D) initiative served as a backbone in the production of value-added products that would support efforts in establishing a high income industry such as the growth of furniture industry specifically furniture made from acacia wood for the export market.
“In line with this mission, STIDC has also established an STIDC Course in collaboration with Universiti Malaysia Sarawak ( Unimas) to produce young creators so that they can create more furniture designs that are competitive in the international market,” he said, adding that this would catalyse the growth of export- oriented furniture industry.
On a related matter, Awang Tengah also said the state government was still committed in ensuring that the Forest Certification programme was implemented by industry players in line with the demand from global market for wood products.
“The state government is encouraging that timber from certified forests be sold at a premium price as an added value towards the Forest Certification efforts.”
He also called on STIDC to work together with government agencies and non- governmental organisations (NGO) from within and outside the country to tackle issues concerning trade barriers so that Sarawak’s wood products could penetrate the international market without any complications.
“With this, we hope that in the 11th Malaysia Plan, we will be able to retain our six main wood product markets namely Japan, Korea, Taiwan, China, United States and the Middle East.”
Assistant Minister for Environment Datu Len Talif Salleh, Assistant Minister for Industrial Development ( Investment and Promotion) Datuk Julaihi Narawi, STIDC management board member Tan Sri Datuk Amar Abdul Aziz Husain, Ministry of Resource Planning and Environment permanent secretary Datu Sudarsono Osman and STIDC general manager Datu Sarudu Hoklai were also present at the assembly.