Sabah to keep exporting logs despite stop pleas

KOTA KINABALU: Sabah will continue to export logs despite appeals from industries and concerned groups for the state’s timber to be locally processed.

Sabah Forest Department director Datuk Sam Mannan said only 12% of logs produced in Sabah were exported overseas, adding that the rest were used by local processing mills.

Last year, Sabah produced just over two million cubic metres of timber, of which about 237,000 cubic metres were exported while more than 1.82 million cubic metres went to local industries, he said.

“It is not desirable nor logical to ban the export of logs as local timber sales are highly subsidised in the form of preferential royalty rates,” he said.

For example, he said Red Seraya (Class C) for export was charged RM160 per cubic metre in royalties as opposed to RM90 per cubic metre if processed locally.

If logs allowed for export were to be diverted for local sales, Mannan said the potential opportunity cost for the Sabah government would be RM15mil or 10% of the total forest revenue.

He said the department would also never know the value of the state’s forests if it shut itself from the world market.

“We will instead be dependent on a ‘ closed shop’ situation of a few local buyers who may collude to create a form of monopoly,” he said.

He added that the artificial pricing and revenue derived then would not be a true reflection of the value of the natural resource and there would be a high element of rent seeking.

Even developed countries such as the United States, Canada and New Zealand continued to export logs for economic reasons, noted Mannan.

He was commenting on a statement by Sabah Timber Industries Association, which had asked the state government to consider stopping the export of logs.

Its president Datuk James Hwong said these resources should be used by local manufacturers facing a shortage of raw materials.

He also said the local industry was able to pay for export grade logs at the same rate as foreign buyers.

Mannan said timber mill operators who had learnt to adapt to the current situation did not face a shortage of raw materials.

Himpunan Hijau chairman Wong Tack had also pointed out that Sabah was the only state in Malaysia which still allowed log exports.

“This has to stop to ensure that not only do local mills have enough raw materials, but also to preserve our natural resources for future generations,” he said.