KUCHING: Timber industry players have no choice but to make adjustments and upgrade their operations in order to sustain their businesses, said Deputy Chief Minister Datuk Amar Awang Tengah Ali Hasan.
“They have to retool, adopt new technology, and go for more automation,” he emphasised at a press conference held after officiating at a special gathering organised by the Sarawak Timber Industry Development Corporation (STIDC) at Wisma Sumber Alam, Petra Jaya here yesterday.
In addition, he said they had to account for a change in raw materials as timber productions from natural forests were declining.
“We are focusing more on planted forests, and timber from these forests is very different compared to those from natural forests in terms of their size,” the Minister of International Trade and Industry, Industrial Terminal and Entrepreneur Development explained.
Hence, he stressed the necessity to move on from old technology. He noted that many timber operations which had not adapted had been forced to close down.
According to Awang Tengah, Sarawak’s timber industry had experienced a 17 percent decline in export value from RM5.4 billion in 2018 to RM4.5 billion last year, due to competition from countries such as Indonesia, Vietnam and China.
“To ensure that our timber industry can move forward and face these challenges, STIDC will be conducting consultations with all stakeholders to get input on these matters,” he said.
On plywood, the STIDC Board of Management chairman said that while plywood produced in Sarawak was of high quality, most global consumers preferred plywood from Indonesia and Vietnam as these were more reasonably priced.
He said that these producers used timber from planted forests.
“Even though the quality is inferior compared to our tropical timber, certain industries such as construction just need plywood with a reasonable price and not such a high-quality product,” he said.
Awang Tengah said some consumer countries still preferred plywood from Sarawak, but the market was small.
He expressed hope that STIDC would be able to engage with all stakeholders and work with the Sarawak Forestry Department to speed up the planted forests programme.
Also present were Assistant Minister of International Trade and Industry, Industrial Terminal and Entrepreneur Development Datuk Mohd Naroden Majais, Assistant Minister of Urban Development and Resources Datuk Len Talif Salleh and STIDC general manager Hashim Bojet.
