Proposed increase is timely, says Naroden

Meanwhile Assistant Minister of Resource Planning Datuk Mohd Naroden Majais said the proposed increase is indeed timely as the current rate of RM0.80 per metric tonne of any species of hill logs and RM3 per metric tonne of logs of hill species from areas converted from agricultural use to commercial use is extremely low.

“When you sell timber, the market does not really care whether logs are from peat, from NCR land or from hills as the market prices more often than not depend on global demand and supplies as well as the economic situation.

“As I remember way back in early 90s, when tenders were called to work on a few timber areas, contractors were willing to pay as high as RM130 per metric tonne. This might be due to good demand for timber at that time. But the demand now compared to before is much different as demand for processed timber has increased tremendously as supplies are on the down trend,” he said.

Naroden stressed that quality timber has also decreased, so the markets cannot be too choosy, hence the prices should be higher.

“Personally, I feel that RM50 per tonne is still too cheap. Furthermore, if the premium is for Yayasan Sarawak, it is for public purposes to finance our children’s education, be it loans or scholarships, build more educational infrastructures and so forth. Therefore, I feel that this increase should be viewed positively by all licensees and contractors as well as by the public at large as the decision was taken in good faith,” he said.