KOTA KINABALU: The Sabah Timber Industries Association wants equal treatment as other sectors, especially in the implementation of government’s policies in the state.
“There should not be any double-standards, discrimination nor prejudice by the government. All industries must be treated fairly as we are contributing, in one way or another, to the development of the state’s economy,” said STIA president Datuk James Hwong You Chuaang, recently.
STIA also called on the state government to provide the necessary support in line with the Economic Transformation Programme in order to sustain the industry, as they fear that without the state government’s support, there will no longer be any downstream wood-based industry left in Sabah.
“While we appreciate the state government’s effort in re-forestation, conservation and rehabilitation, we must be reminded that survival of the downstream industry is essential in order to support the current government’s forest industry development programme,” he said in a statement.
He said this were among the issues deliberated during the association’s 93rd Central Committee Meeting recently which were pertinent to the timber industry in the state. “One of the major issues which the association wishes to again highlight to the state government is the shortage of raw materials for local processing. The inadequate log supply is killing the industry,” said Hwong.
They also appealed to the government to heed the request for the revamping of the logs procurement and distribution system in Sabah, where the local industry should be given equal opportunity to purchase all logs extracted before they are exported.
The association believes that a fair system should be worked out by the state government in full consultation with the industry for the log procurement and distribution policy.
They also hope that at least 20,000 M3 of round logs per-month should be put on the open market for tender, open to all purchasers, local and overseas.
The open tender system can be similar to the Deramakot open tender system.
“As there is insufficient supply of raw materials, it is only logical for the state government to open up the importation of logs. No permit, quota or fee should be imposed on importation of raw materials. The industry should have a free hand to purchase from any source countries,” he said.
During the meeting, they also touched on the issue of employing foreign workers in Sabah.
“The timber industry is categorised under manufacturing due to its nature of business, which is the downstream processing industry, and is adamant in stressing the unfair treatment given to the manufacturing sector by the government.”
Hwong pointed out four issues which he believes were unfairly imposed on those categorised under the manufacturing sector; namely levy, nationality, extension of 5+5 and the 5P Programme.
He disclosed that the manufacturing sector was paying a higher levy as compared to some other sectors, namely RM1,010 per-worker effective Sept 1 this year, while others such as agriculture and plantations were paying RM590 per-worker.
“The manufacturing sector is not allowed to employ workers from other source countries except Indonesia and the Philippines, while other sectors are allowed to employ from Bangladesh, Nepal, Myanmar and Vietnam.
“Under the extension 5+5, the manufacturing sector is not allowed to extend employment permit of foreign workers
beyond five years, which is enjoyed by other sectors such as in plantation and construction,” he stressed.
Hwong also said that workers from the manufacturing sector must exit to the country of origin to obtain the necessary documents for legalisation under the 5P programme, a registration exercise for foreign workers in Sabah, while workers from the other sectors can remain in the state.
“For some selected sectors, workers can remain in the country to formalise work permit documentation,” he said.