Malaysia

Laid-off SFI workers to be rehired as Sabah reboots pulp, paper industry

Consortium will be set up to take over troubled firm’s former concession, says state govt

Updated 1 year ago · Published on 30 Nov 2022 5:18PM

Laid-off SFI workers to be rehired as Sabah reboots pulp, paper industry
Sabah Forest Industries Sdn Bhd’s (SFI) factory in Sipitang, Sabah. Sabah Assistant Minister in the Chief Minister’s Department Datuk Abidin Madingkir says a consortium to take over SFI’s former concession will look into restarting the paper and pulp industry in Sipitang. – The Vibes file pic, November 30, 2022

by Jason Santos

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

Related News

Malaysia / 3d

Video shows orangutan raiding cafe fridge for drinks in Sabah

Malaysia / 6d

Sarawak deputy minister says nothing achieved yet on push to increase state’s MPs

Malaysia / 1w

Perikatan to participate in coming Sabah polls

Malaysia / 1w

Debate swirls over proper term to describe indigenous people of Sabah

Malaysia / 1w

Bridge between Sabah, Labuan vital to revitalise island’s economy, says expert

Malaysia / 2w

Sabah passes new Ocean Thermal Energy Conversion Bill

Spotlight

Malaysia

Cop pleads not guilty to student’s murder

Malaysia

Banks warn about scammers who impersonate NSRC officers

Malaysia

Jeffrey recalls memories of ISA confinement 33 years later

By Jason Santos

Malaysia

Another uprooted tree damages vehicles in KL, causes road closure

By Alfian Z.M. Tahir

Malaysia

Faisal’s condition improves following skin grafts

Malaysia

Petros to take over natural gas buying, selling from Petronas from July 1

By Desmond Davidson

You may be interested

Malaysia

MP orders MBPJ to hire arborist for tree maintenance

Malaysia

Anwar says no to second casino in the country

Malaysia

Decision on Niah park as Unesco World Heritage Site in July

By Desmond Davidson

Malaysia

Petros to take over natural gas buying, selling from Petronas from July 1

By Desmond Davidson

Malaysia

Sarawak urged to record traditions of 3 tribes on verge of extinction

By Stephen Then

Malaysia

Anwar meets Hamas leaders in Qatar, urges Israel to cease Gaza ‘massacre’

Malaysia

Faisal’s condition improves following skin grafts

Malaysia

Johor MB refutes Forest City casino reports as baseless, malicious