forest industries & statistics

Sabah Forestry Department

81

15Forest Industries & Statistics

Production of logsA total of 5.37 million m3 of logs were produced from both natural forests and plantation forests in 2008, a drop by 18.82 % to that of 2007. The decline in the overall production of logs is attributed to a decline in the production of logs from the natural forests. Natural forest production (inclusive of logging residues) was recorded at 4.72 million m3 as compared to 5.94 million m3 in 2007, a drop of 20.58%. Utilization of logging residues however showed an increasing trend at 115,626.38 m3 in 2008. Production from plantation forests or Industrial Tree Plantations was recorded at 653,438.15 m3 as shown in Table 15.1. Although 74 % of the planted trees were produced mostly from alienated lands with Sabah Forest Industries Sdn. Bhd. and Sabah Softwoods Bhd. as the two single biggest producers, it is noted that production of plantation species from Sustainable Forest Management Licence Agreement (SFMLA) areas namely Sabah Forest Industries Sdn. Bhd. and Benta Wawasan are also beginning to make an impact with a contribution of 17 % of the total production of plantation forests.

Company Forest Reserve m3 Stateland m3 Alienated Land m3 Total m3

Sabah Softwoods Bhd. - - 259,133.55 259,133.55

Sabah Forest Industries Sdn Bhd 76,070.11 137,141.00 213,211.11

Syarikat Lak Sdn Bhd 13,406.31 13,406.31

Benta Wawasan Sdn Bhd 35,170.02 35,170.02

Boonrich Sdn Bhd 695.53 695.53

Other small holders 73,212.31 73,212.31

SAFODA:-a. Mangium Plantation Sdn. Bhd.b. Sabakami Sdn. Bhd.c. Koshii Acacia Industries Sdn. Bhd.d. Pemborong Am Bersaudarae. Excella Wood Sdn. Bhd.f. Pemborong GVSg. Pemborong Zaman Baru

14,870.80 m3

1,534.54 m3

493.92 m3

730.78 m3

39,965.48 m3

444.38 m3

569.42 m3

58,609.32 58,609.32

Total 111,240.13 58,609.32 483,588.70 653,438.15

17% 9% 74% 100%

Table 15.1: Sabah: Production of plantation logs by company (2008)

(Clockwise from above) Teak plantation at Sabah Softwoods Bhd, Brantian - Tawau road; Weighing of small diameter logs at SFI Sdn Bhd Weigh Bridge in Tenom and; Acacia Mangium is increasingly being utilized at Jayakuik Sdn. Bhd. for particleboard production

Forest Industries & Statistics

82 Annual Report 2008


Production of Timber ProductsThe decline in Sabah’s log production has affected the performance of the domestic manufacturing industry, whereby all production of manufactured timber recorded a drop in 2008, except for blockboard, paper and chips which showed an improvement in production as illustrated in Tables 15.2 and 15.3 respectively. The declining trend in the production of major products namely sawn timber and plywood is expected to continue in the future in view of the declining resources and that some manufacturers have adjusted their mills’ operations by utilizing more plantation timber and by maximizing utilization of mill residues. At least one plywood mill in Sandakan (Prima Union Sdn. Bhd.) is utilizing oil palm trunks for venner and plywood production to supplement the mill’s raw material requirement.

(Clockwise from above left & above) Utilization of wood waste at Jayakuik Sdn Bhd for the production of Particleboard (left) FSC Certifi ed sawn timber recovered from logging residues processed at Sentosa Jaya Fruit Farm Sdn. Bhd.

Product 2007 2008 % changein Production

2007/2008Input (m3) Output (m3) Input (m3) Output (m3)

Sawn Timber 2,048,916.44 964,432.39 1,794,599.98 855,778.59 -11.27

Veneer

3,642,021.63

204,355.24

3,058,895.22

190,554.48 -6.73

Plywood 1,511,894.50 1,245,958.32 -17.59

Blockboard 59,489.24 65,684.36 10.41

Laminated Board 34,340.38 20,975.12 -38.92

Moulding 339,642.49 238,188.18 243,251.17 164,558.02 -30.91

Particle board 167,435.37 89,627.00 149,660.35 68,879.88 -23.15

Paper (output in M/T) 639,692.34 121,526.00 805,889.64 151,584.00 24.73

Chips 256,674.09 202,918.97 278,384.69 226,647.22 11.69

Treated Timber 23,199.01 23,199.01 15,772.04 15,772.04 -32.01

Kiln Dried Timber 440,019.44 440,019.44 289,209.82 289,209.82 -34.27

MDF 0 0 0 0 0

Bamboo/Rattan Furmiture 4,176.06 3,783.95 3,466.94 3,017.21 -20.26

Table 15.2 : Sabah: Production of timber products (2008)


83

Type of ProductSandakan Kota Kinabalu Keningau Tawau Kudat Total

Input (m3) Output (m3) Input (m3) Output (m3) Input (m3) Output (m3) Input (m3) Output (m3) Input (m3) Output (m3) Input (m3) Output (m3)

Sawn Timber 412,244.43 190,258.14 158,840.07 82,858.68 547,067.33 263,609.99 651,974.50 309,845.12 24,473.65 9,206.66 1,794,599.98 855,778.59

Veneer

1,170,880.51

49,411.94

57,465.80

23,174.16 34,318.50

1,388,748.42

83,649.88

0

0 - 190,554.48

Plywood 527,672.50 5,656.34 441,800.49 174,109.22 538,520.26 - 3,058,895.22 1,245,958.32

Blockboard 6,896.57 - 2,615.43 56,172.36 - - 65,684.36

Laminated Board 8,911.00 0.00 731.88 11,332.24 0 - 20,975.12

Moulding 46,648.16 25,901.55 91,325.68 61,849.15 23,366.59 15,111.57 81,767.04 61,573.18 143.70 122.57 243,251.17 164,558.02

Particle baord 149,660.35 68,879.88 - - - - - - 0 0 149,660.35 68,879.88

Paper (output in M/T)

- - 805,889.64 151,584.00 - - - - - - 805,889.64 151,584.00

Chips 0.00 0.00 - - - - 262,343.90 212,985.50 16,040.79 13,664.72 278,384.69 226,650.22

Treated Timber 1,353.93 1,353.93 7,607.80 7,607.80 2,031.00 2,031.00 3,542.97 3,542.97 1,236.34 1,236.34 15,772.04 15,772.04

Kiln Dried Timber 37,717.87 37,717.87 91,155.97 91,155.97 41,372.16 41,372.16 114,227.05 114,227.05 4,736.77 4,736.77 289,209.82 289,209.82

MDF 0.00 0.00 - - - - - - - - 0.00 0.00

Bamboo/Rottan Furniture

- - - - 3,466.94 3,017.21 - - - - 3,466.94 3,017.21

Production of Non-Timber Forest ProduceThe extraction of non-timber forest produce namely charcoal, mangrove poles, rattan and bamboo remained small. In 2008, production of all non-timber forest produce recorded a decline. Poor market demand was cited as the main reason for the decline in the extraction of the few main forest produce as shown in Tables 15.4, 15.5 and 15.6 respectively, while Table 15.7 shows the total number of charcoal factory permits issued in 2008.

(Left & right) Peeling of oil palm trunk at Prima Union Plywood Sdn. Bhd. for plywood production

Table 15.3: Sabah: Production of forest products by region (2008)

Table 15.4: Sabah: Production of charcoal (2002-2008)

DistrictYear

2002 (kg) 2003 (kg) 2004 (kg) 2005 (kg) 2006 (kg) 2007 (kg) 2008 (kg)

Sandakan 47,800 50,400 63,000 64,900 61,700 66,200 70,340

Kota Marudu 94,144 91,600 70,500 94,300 67,200 8,500 49,000

Beaufort 7,000 7,000 20,000 14,000 39,000 39,000 23,000

Kota Kinabalu - - 7,500 9,500 - - -

Kudat 20,970 28,650 53,490 42,700 - - -

Tawau 313,350 333,500 421,800 452,800 428,084 618,070 551,700

Kinabatangan 50,000 58,000 50,000 51,890 60,860 63,096 70,900

Total Sabah 533,264 569,150 686,290 730,090 656,844 794,866 764,940




DistrictYear

2007 2008 2007 2008

Rattan (Metric Tonnes) Rattan (Metric Tonnes)

Kunak 176.00 75.00 - -

Tawau - - - -

Lahad Datu 1.00 - - -

Tambunan 217.52 66.30 5,791.77 3,736.10

Sandakan - - 7,800.00 -

Total 394.52 141.30 13,591.77 3,736.10

District

2008

No. of Permits Total Permits Number of KilnsActive Inactive

Sandakan 1 - 1 3

Kota Marudu 4 11 10 22

Beaufort 1 - 1 2

Kota Kinabalu - 1 1 1

Kudat - 3 5 3

Tawau 4 - 4 23

Kota Kinabatangan 1 - 1 5

Total Sabah 11 15 23 59

Table 15.5: Sabah: Production of rattan and bamboo 2008

Table 15.7: Sabah: Total number of charcoal factory permits (2008)

Table 15.6: Sabah: Production of mangrove poles for piling (2000 - 2008)

Production of oil palm from agro-forestry activities

Year

Sandakan Kunak Lahad Datu Pitas Tawau Semporna Sipitang Beaufort Kota Kinabalu Total Sabah

RunningMetre

RunningMetre

RunningMetre

RunningMetre

RunningMetre

RunningMetre

RunningMetre

RunningMetre

RunningMetre

RunningMetre

2000 79,500 - 11,960 - 21,096 - - 1,200 - 113,756

2001 37,750 - 13,780 - 11,021 - - 11,293 - 73,844

2002 22,500 - 40,227 - 15,209 - - 12,510 - 90,446

2003 29,250 - 24,440 3,600 11,328 - - 8,421 - 77,039

2004 35,750 22,439 28,600 7,800 19,334 19,402 - 1,080 3,322 137,727

2005 22,250 32,045 10,140 18,000 11,655 27,460 - 1,774 1,740 125,064

2006 41,750 12,439 26,400 18,000 13,408 57,083 - 3,096 - 172,176

2007 47,250 - 20,200 17,560 19,597 96,511 300 1,750 - 203,168

2008 36,250 - 11,390 10,120 12,526 66,760 - 500 - 137,546

Agro Forestry (Oil Palm) ProductionThe fi rst production of oil palm from agro-forestry activities in Forest Reserves was recorded in 2007 with a small production of 32.78 Metric Tonnes (MT) from Benta Wawasan Sdn Bhd. The volume increased to 1,371.92 MT in 2008 with production from Benta Wawasan Sdn Bhd (87%) and Samel Plantation Sdn Bhd, generating revenue in the form of royalty at RM29,459.74 as in Table 15.8.


85

Table 15.8: Sabah: Production of oil palm from agro forestry activities (2007 & 2008)

Table 15.9 : Sabah: Total set-up of wood processing mills in Sabah in 2008 by region

Table 15.10: Sabah: Comparative total number of active and inactive mills in 2007 and 2008

Note:V/P/PPY/BB/LB : Veneer, plywood, polyply, blockboard and laminated board.Note : Some mills are integrated and hence producing more than one product.

Month2007 2008

M/T Royalty (RM) Average Royalty (RM/MT) M/T Royalty (RM) Average Royalty (RM/MT)

Jan - - - 33.80 1,123.42 33.24

Feb - - - 39.02 1,356.40 34.76

Mar - - - 46.73 1,707.86 36.55

April - - - 55.42 1,839.99 33.20

May - - - 62.81 2,170.56 34.56

June - - - 72.08 2,530.65 35.11

July - - - 93.42 3,070.39 32.87

Aug - - - 139.10 3,332.41 23.96

Sept - - - 155.12 3,292.11 21.22

Oct - - - 199.16 3,070.38 15.42

Nov 9.03 252.14 27.92 267.89 3,245.70 12.12

Dec 23.75 658.77 27.74 207.37 2,719.87 13.12

Total 32.78 910.91 27.79 1,371.92 29,459.74 21.47

Wood Processing MillsThere has not been any signifi cant changes to the total number of wood processing mills in Sabah in 2008 and its composition as compared to 2007 is as seen in Tables 15.9 and 15.10, with a small drop in the number of sawmills and veneer/plywood mills and mills with supporting services such as kiln dried and wood preservation plants was observed. The main concentration of wood manufacturing mills in Sabah remained in the Tawau and Sandakan Regions.

Type of ProductSandakan Kota Kinabalu Keningau Tawau Kudat Total

Licenced Active Licenced Active Licenced Active Licenced Active Licenced Active Licenced Active

Sawmill 33 23 24 16 50 39 55 39 13 5 175 122

V/P/PPY/BB/LB 18 14 4 2 11 7 28 15 2 0 63 38

Moulding 21 7 33 22 22 9 62 31 4 1 142 70

Particle board mill 2 2 - - - - - - 1 0 3 2

Paper - - 1 1 - - - - - - 1 1

Chips mill 2 0 - - 1 0 2 1 2 1 7 2

Wood Preservative Plant

6 2 11 4 3 2 11 3 1 1 32 12

Kiln Dried Plant 13 9 19 15 8 6 23 13 1 1 64 44

MDF mill 2 0 - - - - - - - - 2 0

Bamboo/Rattan Furniture mill

- - - - 1 1 - - 0 0 1 1

Type of Product2008 2007

Increase/(decrease) in number of mill 2008/2007

Licenced Active Inactive Licenced Active Inactive Licenced Active

Sawmill 175 122 53 171 115 56 -4 -7

V/P/PPY/BB/LB 63 38 25 65 37 28 -2 1

Moulding 142 70 72 142 69 73 0 1

Particle board mill 3 2 1 3 2 1 0 0

Paper (output in m/t) 1 1 0 1 1 0 0 0

Chips mill 7 2 5 5 2 3 2 0

Wood Preservative Plant 32 12 20 33 15 18 -1 -3

Kiln Dried Plant 64 44 20 65 48 17 -1 -4

MDF mill 2 0 2 2 0 2 0 0

Bamboo/Rattan Furniture mill 1 1 0 1 1 0 0 0




Installed Capacity of MillsThe installed input capacity of wood-processing mills utilizing logs in Sabah stood at 9.1 million m3 in 2008 with the breakdown as below:

Type of Mill Installed Input Capacity (m3)

Sawmill 3.7 million

Veneer/Plywood mill 4.5 million

Pulp & Paper Mill 0.9 million

Total 9.1 million

Investment and Equity Structure In spite of the declining raw materials, the total investment and equity structure in Sabah’s wood-based industry in 2008 showed an improvement to that of 2007 as shown in Table 15.11 with a total accumulated investment at RM 4.797 billion as compared to RM 4.460 in 2007. This was attributed to reinvestments in new machineries and new buildings to meet with the changing raw materials and integration of manufacturing operations of products.

CitizenshipSabah

Equity (RM) % Investment (RM) %

Taiwanese 288,097,448 9.04 548,453,894 11.43

Japanese 94,730,917 2.97 189,446,140 3.95

Singaporean 32,407,927 1.02 78,734,787 1.64

Korean 13,999,998 0.44 50,750,597 1.06

Italian 6,900,000 0.22 9,500,000 0.20

Indonesian 1,250,000 0.04 5,349,716 0.11

Hong Kong 1,237,500 0.04 619,691 0.01

Germany 1,200,000 0.04 9,971,960 0.21

Canadian 122,500 0.00 387,500 0.01

USA 105,000 0.00 2,039 0.00

Total Foreign Investment 440,051,290 13.81 893,216,324 18.62

Malaysian 2,745,632,115 86.19 3,903,863,825 81.38

Total Investment 2008 3,185,683,405 100.00 4,797,080,149 100

Total Investment 2007 3,097,333,709 4,459,607,010

Table 15.11: Sabah: Comparative total number of active and inactive mills in 2007 and 2008

Table 15.12 : Employment in the wood-based industry in Sabah (2008)

Employment The shrinkage in the domestic wood-manufacturing activities in 2008 reduced the total number of people employed in the wood-manufacturing sector by 3.05%. Table 15.12 shows the details of employment in the wood manufacturing sector in 2008.

Type of Mill Bumiputra Non-Bumiputra Malaysian Others Total

Sawmill 2,859 1,421 4,280 5,159 9,439

V/P/PPY/BB/LB 4,583 1,995 6,578 14,654 21,232

Moulding 2,584 768 3,352 2,653 6,005

Particle baord mill 168 101 269 7 276

Paper (output in M/T) 805 31 836 2 838

Chips mill 89 0 89 4 93

Wood Preservative Plant 252 44 296 131 427

Kiln Dried Plant 1,649 667 2,316 2,713 5,029

MDF mill 0 0 0 0 0

Bamboo/Rattan Furniture mill 1 2 3 0 3

Total 12,990 5,029 18,019 25,323 43,342


87

Table 15.13 : Sabah: Comparative export of selected timber products for 2008

Chart 15.1: Export of logs by major destinations (2008)

Export Of Forest ProductsThe deterioration in the world economy which began to surface at the last quarter of 2008 and coupled with lower production of logs, affected the export earnings of major forest products in 2008. The export value of forest products recorded a decline from RM 4.10 billion in 2007 to RM3.58 billion. As shown in Table 15.13, all major products showed a decline in both export volume and export value in 2008, except for paper. Minor manufactured products such as blockboard, laminated windows/beams/doors, chips however showed a slight improvement to that in 2007.

Export of LogsA total of 510,482.19 m3 of logs were exported in 2008, a decline by 39.44% to that of 2007 with an average price of RM 582/m3.The top fi ve destinations of round logs were China (53%), Japan (20%), and India (11%)as illustrated in Chart 15.1.

Product2008 2007 % change

Volume Value RM FOB Volume Value RM FOB Volume Value RM FOB

Round Logs (m3) 510,482.20 298,586,952.57 842,990.53 398,425,326.61 -39.44 -25.06

Plantation Logs (m3) 122,906.70 22,526,994.14 168,698.19 31,696,394.59 -27.14 -28.93

Sawn Timber (m3) 525,717.65 847,843,120.99 571,509.28 895,312,627.43 -8.01 -5.30

Veneer (m3) 91,562.84 123,430,922.49 97,779.52 132,544,044.74 -6.36 -6.88

Plywood (m3) 1,123,923.06 1,548,411,101.40 1,345,416.69 1,865,710,598.54 -16.46 -17.01

Moulding (m3) 24,280.63 64,819,149.46 40,965.60 117,884,258.49 -40.73 -45.01

Paper (output in m/t) 102,528.49 295,123,766.06 85,460.78 230,295,665.67 19.97 28.15

Blockboard (m3) 65,312.75 93,558,312.12 57,790.61 79,318,351.79 13.02 17.95

Laminated Board (m3) 29,015.77 32,537,679.45 41,882.86 41,525,125.06 -30.72 -21.64

Chips (m3) 76,370.21 37,868,529.09 75,183.18 26,845,362.06 1.58 41.06

Particle Board (m3) 66,605.61 35,381,007.28 77,119.76 35,261,735.74 -13.63 0.34

Finger Joint Products (m3) 25,119.66 50,595,087.90 33,701.69 77,891,441.07 -25.46 -35.04

Export of Plantation LogsExport of plantation logs in various sizes comprising of mostly Acacia mangium and a small volume of Teak also dipped by 27.14% in 2008 as compared to that in 2007. Indonesia remained as the biggest importer of Sabah’s plantation logs accounting for 68% of Sabah total export of plantation logs, followed by Vietnam at 28%. No signifi cant movement in the average price was observed in 2008 where the export price averaged at RM183/m3.




Export of Sawn TimberA drop in the sawn timber production in 2008 also saw a decline in the export of sawn timber by 8.01%. Thailand, South Africa, Japan, Taiwan and Pen. Malaysia were the main markets of Sabah’s sawn timber with a total import of 62.93% of Sabah’s total export as shown in Chart 15.3. The export of all types of sawn timber averages RM 1,612.73/m3 in 2008 as compared to RM1,566.58 in 2007.

Export of PlywoodAs for sawn timber, plywood exports from Sabah also dipped by 16.46%. Pricewise, plywood showed further deterioration in prices in 2008 as compared to 2007 in view of the global fi nancial turmoil. In spite of that, plywood contributed 43.24 % of Sabah’s total export of forest produce in 2008. Chart 15.4 shows the main importers of Sabah’s plywood.

Chart 15.2: Export of plantation logs by major destinations (2008)

Chart 15.3: Export of all sawn timber by major destinations (2008)

Chart 15.4: Export of all plywood by major destinations (2008)


89

Product Vol RM FOB Average PriceRound Logs m3 510,482.1990 298,586,952.57 584.91 Plantation Logs m3 122,906.7001 22,526,994.14 183.29 Rough Sawn Timber m3 390,859.0220 611,579,235.91 1,564.71 K/D Rough Sawn Timber m3 39,707.8387 85,459,723.15 2,152.21 S4S Sawn Timber m3 37,998.8891 64,339,220.21 1,693.19 E4E Sawn Timber m3 1,341.3999 5,667,169.67 4,224.82 Rubber Wood Sawn Timber m3 4,762.3483 3,840,540.75 806.44 A/D Press Impregnated Timber m3 1,575.2649 4,214,810.67 2,675.62 K/D Press Impregnated Timber m3 265.0353 557,496.45 2,103.48 S2S Rough Sawn m3 3,864.3196 8,865,444.50 2,294.18 K/D S2S Sawn Timber m3 33.7600 41,148.88 1,218.86 K/D S4S Sawn Timber m3 4,496.2715 14,257,699.14 3,171.00 Plantation Sawn Timber m3 9,139.5050 12,188,146.63 1,333.57 Sticks m3 31,673.9948 36,832,485.03 1,162.86 Plain/Ordinary Plywood m3 1,107,742.2907 1,509,871,464.87 1,363.02 High Value Added Plywood-Fancy m3 16,180.7742 38,539,636.53 2,381.82 Rotary Veneer m3 91,131.7752 120,604,610.35 1,323.41 Sliced Veneer m3 421.6720 2,657,670.24 6,302.70 Edge Bending Veneer m3 9.3896 168,641.90 17,960.50 Blockboard m3 65,312.7470 93,558,312.12 1,432.47 Laminated Bare Core Board m3 29,015.7732 32,537,679.45 1,121.38 Finger Joint Products m3 25,119.6636 50,595,087.90 2,014.16 Medium Density Fibreboard m3 178.4295 239,200.03 1,340.59 Laminated Window/Door/Beam m3 10,136.2697 32,222,556.57 3,178.94 Particle Board m3 66,605.6128 35,381,007.28 531.20 Mould Board m3 4,983.3619 20,210,404.13 4,055.58 Laminated Veneer Lumber m3 5,325.0000 9,102,772.84 1,709.44 Paper m/t 102,528.4885 295,123,766.06 2,878.46 Inland Chips m3 76,370.2100 37,868,529.09 495.85 Broomstick m3 12.6500 17,184.18 1,358.43 Woodwaste m/t 3,309.9400 112,999.43 34.14 Veneer Waste m/t 2,222.6100 543,565.29 244.56 Sawn Timber End Trimnings m/t 294.3200 119,903.13 407.39 Processed Lumber Core m3 2,301.0033 662,781.33 288.04 Moulding (Profi le) m3 24,280.6323 64,819,149.46 2,669.58 Veneer Wrapped Moulding m3 62.8751 621,773.38 9,889.02 Furniture Components (Indoor) m3 7,589.1211 27,108,344.38 3,572.00 Garden Furniture m/t 20,686.7187 26,920,576.10 1,301.35 Musical Components m3 1,326.8024 5,614,483.37 4,231.59 Parquet Flooring (Non-Assembled) m3 277.2400 1,213,711.86 4,377.84 Door m3 1,236.8810 5,795,567.48 4,685.63

Total 3,581,188,446.45

Export of PaperThe export of paper showed an increase from 85,460.78 MT in 2007 to 102,528.49 MT in 2008 or an increase of 19.97 % in 2008. A slight increase is observed on the average price of paper from RM 2,694.75 to RM2,878.4/MT in 2008. The top four destinations of Sabah’s paper exports in 2008 are illustrated in Chart 15.5.

Export of all Forest ProductsThe details of all forest products/produces exported in 2008 are shown in Table 15.14.

Chart 15.5: Export of paper by major destinations (2008)

Table 15.4: Export of all forest products (2008)




Timber Royalty and Other FeesThe royalty rates of logs for export and for domestic processing remained unchanged for the year 2008 with the last revision on 1st April 2007. The royalty rates of timber in Sabah for 2007 are shown in Table 15.15.

1. Export Royalty On Round Logs Including Treated Poles

Class SpeciesRoyalty (RM/m3)

FR/NFM Helicopter Logging ITP/SL/AL

A Belian 270 270 Irrespective of size 270

B Merbau/ Merbau Lalat 270 135

i. ≥ 60 cm ii. 45-59 cm (a) iii. 30-44 cm (a) iv. 29cm and below (a)

27012010050

C Red SerayaWhite SerayaYellow SerayaMelapiKapurKeruingSelangan BatuAgathisKembangKembang SemangkokNyatohOba SulukPengiran

155 77.50

i. ≥60 cm ii. 45-59 cm (a) iii. 30-44cm (a) iv. 29cm and below (a)

15512010050

D Any other species not mentioned in class A, B, C, E, F and G

120 60 i. ≥ 60 cm ii. 45-59 cm (a) iii. 30-44cm (a) iv. 29cm and below (a)

120907050

E Perupok 120 notapplicable

Irrespective of size 120

F Macaranga 20 10 Irrespective of size 20

FR/NFM/ITP FR Irrespective of size

G Acacia(i) ≥ 60 cm (ii) 45-59 cm (a) (iii) 30-44cm (a) (iv) 29cm and below (a)

115856545

notapplicable

20202020

0000

FR: Forest Reserve NFM: Natural Forest Management ITP: Industrial Tree Plantation AL: Alienated Land SL: State land(a) From alienated land, state land and industrial timber plantation approved within Forest Reserve.

Table 15.15: Sabah: Royalty of timber 2008


91

2. Local Processing Royalty

Diameter Class

Royalty (RM/m3)

RIL

Helicopter Logging

Non-RIL

FR/NFMFR/NFM

ITP SL ALBW/YS Others

Logs ≥ 60 cm 45-59 cm (a)30-44 cm (a)29 cm & belowMacarangga Spp.Logging Residues/Branches (a) BelianPerupok

70-----

8080

35-----

80Not applicable

70---5

10

80Not applicable

80---5

10

8080

807030255

10

8080

807030255

10

8080

807030255

10

8080

Acacia≥ 60 cm 45-59 cm (a)30-44 cm (a)29 cm & below

Not applicable Not applicable75652520

75652520

75652520

5555

0000

Converted Timber 160Belian: 160Others: 70

Belian:160Others: 140

160 160 160 160

Logs for SFI’s pulp and paper mill (b)

- - - 5 5 5 5

FR: Forest ReserveNFM: Natural Forest ManagementITP: Industrial Tree PlantationAL: Alienated LandSL: State landBW: Benta WawasanYS: Yayasan Sabah

(a) Subject to inspection and verifi cation by the Staff of Sabah Forestry Department Royalty on Logging Residues increased from RM5 to RM10 effective 1 February 2008(b) As input for paper mill only

3. Royalty for ‘Confi scated Log’ /Auctioned timberi. Logs : RM 80/m3 irrespective of size, species and source.ii. Converted Timber : RM 160/m3 irrespective of size, species and source.

4. Processed Timber Export Royalty

5. Inspection Fees And Certifi cation Charges On Imported Timber

Type Rate (RM/m3)

All Sawn Timber 10

All Plywood 5

All Veneer 10

All mouldings 5

Type Rate (RM/m3)

Logs 10

Converted Timber 10

Sawn Timber 10

Veneer 10

Others -




6. Premium

Type Premium rate RM/M3

a. FR/NFM 60cm and above only

1. Yayasan Sabah & Benta Wawasan 15Macaranga: Exempted

2. Other licences after 01 Feb 2002 20Macaranga: Exempted

3. Other licences before 01 Feb 2002 According to licences conditionsMacaranga: Exempted

4. SFMLA 30Macaranga: Exempted

b. ITP ≥ 45cm ≤ 44cm

1. Yayasan Sabah & Benta Wawasan 15Macaranga: Exempted

0Macaranga: Exempted

2. SFMLA 20Macaranga: Exempted


c. Stateland ≥ 45cm20

Macaranga: Exempted

≤ 44cm5

Macaranga: Exempted

d. FR/ITP (non YS/BW) 20Macaranga: Exempted


The Extraction and Export of Gaharu and Ramin (CITES Regulated Trade)There was no record of extraction nor export of Gaharu and Ramin in 2008. As a trial however, the fi rst Gaharu Distillery Plant Licence was issued to Akil Everich Sdn. Bhd. in Kota-Belud for the processing of Gaharu chips derived from a private land. As at the end of December 2008, the plant is yet to be operational.Only one forest offence involving illegal extraction of Gaharu was detected in Tawau in 2008, involving 60kg of Gaharu.

Application Of Forest Plantation Incentives in SabahTimberwell Bhd became the second Sabah based company involved in industrial tree plantations given Group Relief Tax Incentives by the Ministry of Plantation Industries and Commodities, Malaysia in 2008. The fi rst company given with a similar tax incentive was TSH Resources Bhd. in 2007.

Radio Frequency Identifi cation Technology Timber Tracking Technology Timber Tracking Systems (RFID LOGTRAMS) Pilot ProjectFor the year 2008, the Sabah Forestry Department collaborated with Yayasan Sabah’s Forestry Division in the implementation of the RFID timber tracking system pilot project in the Kuamut Forest Reseve (120 ha) in Tongod Forestry District. The objective of the pilot project was to include Sabah Forestry Department requirements such as generation of digital Disposal Permit, Forestry Department Management Reports and integration of fi eld data with the Computer Department’s Billing System in the Yayasan Sabah’s RFID log timber tracking system from the stump until the printing of royalty bills for reconciliation purposes. The Yayasan Sabah Forestry Division earlier developed the RFID LOGTRAMS in its two small areas/pilot projects covering inventory, transportation and sales in RIL extraction.

The RFID LOGTRAMS project site at Kuamut Forest Reserve in Tongod Forestry District

The RFID Project Implementation Team comprising Yayasan Sabah Forestry Group, Sabah Forestry Department and Robust AG Sdn. Bhd.


93

Field training for staff of Tongod Forestry District on the usage of RFID hand held computer.

Bar codes embedded with RFID chips. (left) RFID tag, tagged on logs and (right) RFID tag, tagged on standing timber prior to felling and left on the stump after felling.


Effective leadership is putting fi rst things fi rst. Effective management is discipline, carrying it out.

– Stephen Covey

forest industries & statistics

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