SANDAKAN: Seguntor industrial area is still facing huge power supply problem since 2009, said the Sabah Timber Industries Association (STIA).
Its secretary general, Stephen Chaw, said in a statement yesterday that up to May 22, 2013, they had experienced 510 hours of power related issues (equals to 21 days). In 2011, it was 662 hours (28 days) of power failure and in 2012, 106 hours (four days).
In comparison with 2012, he said, the situation was getting worse this year despite the announcement by Sabah Electricity Sdn Bhd (SESB) and relevant ministry that initiatives to improve the situation were undertaken but things were getting worse and the companies were suffering millions of ringgit of losses due to increased production costs, spare parts replacements and loss of competitiveness even compared with producers in West Malaysia.
Besides power disruptions, Chaw said the lack of raw material and labour and their high costs were also causing the industry to suffer tremendously.
“The situation is further aggravated by high transport costs and other port charges but there is no programme to upgrade the port facilities while shipping costs to various destinations remain very high.
“All these costs and failure of the government to back up the industry is causing more mills to close down or moving out from Sandakan, even from Sabah,” Chaw claimed.
He said STIA calls for urgent intervention of the State and Federal Governments by taking the following steps:
1. An immediate visit by the Minister of Industrial Development to Seguntor Integrated Timber Complex (ITC) area, and not send officers as this was done many times and issues remain unresolved. This will enable the minister to understand the problem on the ground and look for solution to ensure issues can be resolved.
2. SESB issues to be handled and settled by the new Energy Minister without further delay and no more excuses to be given by SESB as they should be the service provider and should know what to do. SESB must have proper planning, checking and problem solving system.
3. Incentive and grant to be given by MIDA, MITI, MTIB and other related government agencies to locally owned companies to cover the losses and to sustain the business.
4. Make Seguntor Integrated Timber Complex more attractive so that investors’ confidence in investing further will be restored along with the status of Seguntor ITC area as the top industrial complex in Sandakan.
5. Develop Seguntor ITC as a wood-based industrial cluster as part of Sabah Development Corridor so that facilities in the area can be further upgraded by the government.
6. Overcome insufficient infrastructure development in Sandakan:
a. Complete the drainage system in the whole Seguntor ITC area.
b. Provide complete streetlights at Seguntor road as currently part of area is unlit.
c. Household waste collecting service by Sandakan Municipal Council be improved.
d. Completely upgrade all roads to asphalt road.
Chaw said STIA also hopes the Chief Minister will personally listen to the problems faced by companies, particularly in the Seguntor Integrated Timber Complex and all the timber industry players in Sabah.