Timber industry still top contributor to Sabah’s economy, says Gunsalam


Gunsalam (middle) receiving a memento from Sabah Timber Industries Association president Tan Peng Yuan.

KOTA KINABALU: Sabah earned over RM500mil from the export of timber products last year, said Datuk Seri Dr Joachim Gunsalam.

The Deputy Chief Minister explained that the total export generated from the timber sector between January and June 2022 was approximately RM587,993,764, adding the main products exported include plywood, sawn timber and moulding-related products.

“This was an increase of 22% in terms of value compared to the same period in the year 2021,” he said at the Lumber Night 2023 held here on Saturday (Jan 7).

“In terms of volume, there is a slight increase of 9.42%. The timber industry is still one of the main contributors to Sabah’s economy,” added Gunsalam, who is also the state Industrial Development Minister.

He said the Sabah government has been managing the state’s forest in a sustainable manner since the establishment of the Sustainable Forest Management (SFM) Policy in 1997.

In addition to this, the timber industry in Sabah shall witness significant changes in the future with plantation timber taking over as the primary source of raw material for both the upstream and downstream sectors, he said.

Gunsalam added that the government has launched the Action Plan on Forest Plantation Development (2022-2036) in March 2022 to achieve this aim.

“The Sabah government, particularly my Ministry, is supportive of the policy to establish 400,000ha of forest plantations by 2035 as a measure to reduce dependence on timber from forest reserves, as well as to enhance timber productivity in the state,” Gunsalam said.

“The Forestry Department has also deemed it important to ensure there was a reduction in the number of logging concessions issued as a proactive move in promoting SFM as a long-term plan,” he added.

Since the start of the conservation initiative, he said, the state government has achieved significant progress in forest conservation.

“At this point in time, I am proud to be a Sabahan since Sabah still has 64% of the total land mass that is still covered with forest. We all should be very proud of this heritage for the next generation to see and enjoy. Kudos to the Sabah Forestry Department,” Gunsalam said.

He said his Ministry was given to understand that if Sabah manages to develop 400,000h of forest plantations with an estimated of 200 cubic meters of timber per hectare per year, over a period of 10 years, the state can expect eight million cubic meters of timber extraction.

With this volume, he said, his Ministry will be able to confidently promote the wood-based industry, especially in the downstream activities which will then provide more employment for the locals.

“I think this is a very important target to be realised and achieved,” he added.

Gunsalam said the commitment to this policy required huge investments of up to RM170mil annually, adding in this regard, both the federal and state governments have provided various incentives to the SFM licensees to support forest plantation development.

He called on both the upstream and downstream industry players to work closely with the government as the way forward to continue the development of the timber industry in Sabah.

“The Sabah Forestry Department and my Ministry will work hand in hand together with the industrial players to ensure our target is achieved.

“I am happy to note the industries’ active participation in tree planting activities in support of the Greening Malaysia Programme, which is one of the national agendas that address climate change and quality of life with the goal to plant 100 million trees across the country by 2025.

“I have joined the Sabah Timber Industries Association (STIA) in several tree planting events and I perceived this as a good initiative to promote public awareness and nurture the mindset of younger generations on the importance of replanting towards tackling climate change issues,” Gunsalam said.

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