KOTA KINABALU – The Sabah government’s decision to maintain its ban on log exports will augur well for the industry, as it will protect the local logging trade from being depleted, maintain job security for locals and attract more investments in future.
Sabah Timber Industries Association (STIA) president Tan Peng Juan said the move has further established the long-term confidence in the development of value-added timber processing in the state.
“The decision will go far in maintaining job security for approximately 24,000 individuals employed in various sub-sectors in the industry.
“The confirmation has come at a very important time for the industry, as many initiatives, such as the master plan for Sabah’s timber and council for the state’s forestry and timber industry, can now be pushed forward.”
Sabah Chief Minister Datuk Seri Hajiji Mohd Noor has recently announced the state government’s decision to maintain the log export ban initiated by the previous Warisan administration.
Tan said the industry can now settle down and focus on critical mid- to long-term plans for Sabah.
However, the road forward will not be easy as the state’s natural resources are depleting, he added.
“The approach towards industrial tree plantation is one area that will see the biggest changes. It is an expensive endeavour and takes up to 10 years to bear fruit.
“A policy decision that is consistent will ensure investors have full confidence that their investments in the state are secured.
“Current and new investors in a capital-intensive sector, such as tree planting, can also plan ahead and ensure their commercial targets match the aspirations of the government of the day.
“The complex downstream ecosystem that depends on the plantation supply chain will definitely benefit if the government is steadfast in its policies.”
New product developments, technology investments and overall additional job opportunities from the natural forest sector in the state heavily depend on the maintaining of the log export ban, he said.
There have been delayed and withheld investments due to uncertainty on the policy after the change of government last year, he added, but now that the chief minister has taken a stance to maintain the ban, STIA believes the right message is being shared with potential investors.
“STIA realises the long-term challenges faced in tree plantation and natural forest sectors, which require time to be studied and resolved.
“We hope these issues will be considered, while the government and industry work together to map out the next step for the industry.
“With the recent affirmation on log exports, there is much hope.” – The Vibes, April 11, 2021
