KOTA KINABALU – The restructuring of the pulp and paper industry in Sabah will include hiring those who were previously laid off from Sabah Forest Industries Sdn Bhd (SFI).
Assistant Minister in the Chief Minister’s Department Datuk Abidin Madingkir said a consortium to take over SFI’s former concession will look into restarting the paper and pulp industry in Sipitang.
According to him, the state has decided to divide the forest concession previously assigned to SFI into small portions under a new licence agreement to the consortium’s firms.
“The investing firms will form the consortium and the takeover of the SFI assets will be implemented by the Sabah government.
“The yet-to-be-established consortium is hoping to be able to restart and restructure the development and management of paper and pulp operations, as well as other downstream industries, including solving the role of the existing sub-contractors,” he said in his winding-up speech at the Sabah assembly here today.
Madingkir said while waiting for the formation of the consortium, all former SFI workers have been allowed to stay at the existing workers’ quarters.
“It is hoped that with the formation of the consortium, issues relating to SFI will be resolved. At the same time, forest resources will be better managed, and the factory operations could be restarted.
“Lastly, the welfare of the former workers will be resolved through the rehiring programme.”
The Vibes previously reported that some 600 laid-off employees of the bankrupt SFI would have to vacate their quarters at the former paper mill and estate at the end of October following the state’s move to take back the land.
They have been living there after SFI went into receivership in 2017 under the terms of their retrenchment. Some of them have lived there even longer, for more than 30 years when the paper mill was in its heyday.
On September 5 this year, however, the Sabah Land and Survey Department issued a reclamation notice for the 46.033ha state which includes the SFI workers’ quarters.
Meanwhile, he said further study will be made before deciding on the hunting season proposal made by Datuk Abdul Ghani Mohamed Yassin (Nabawan-Bersatu).
Madingkir said suitability of the forest reserves, enforcement, and species of wildlife have to be considered and the task will fall on the Forestry Department. – The Vibes, November 30, 2022
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