KUCHING: Chief Minister Datuk Amar Abang Johari Tun Openg said he has yet to be briefed on the new timber policy that stipulates an increase of more than 6,000 per cent in premium rate payable for every cubic metre of hill timber log by timber companies effective July 1.
“I cannot comment on it yet because I have yet to be briefed on the issue. I was on an official trip to London for the last 10 days,” Abang Johari, who is also Resource Planning and Environment Minister, told The Borneo Post after inspecting the guard-of-honour mounted by the Royal Malaysia Police at its headquarters at Jalan Badruddin here yesterday.
Previously, timber companies felling hill timber logs were required to pay RM0.80 per metric metre of logs which they harvested, for the Sarawak Education Fund of which Yayasan Sarawak is the secretariat.
A circular dated Apr 12 issued by State Forestry director Sapuan Ahmad stated that the chargeable premium for hill timber log has increased from RM0.80 to RM50 per metric metre.
The circular entitled ‘New Rate of Hill Timber Premium (Sarawak Foundation Fund)’ stated that “Chief Minister/Minister of Resource Planning and Environment in accordance with Section 46 (1) of the Forest Ordinance, 2015, has approved the increase in rate of Hill Timber Premium, that is premium chargeable on all species of logs harvested from hill forests and logs of hill species from agri-conversion areas’.
The current rate of Hill Timber Premium for all hill logs is RM0.80 per cubic metre and logs of hill species from agri-conversion areas is RM3 per cubic metre.
According to the circular, the new rate of hill timber premium for all hill logs (including logs of hill species from agri-conversion areas) is RM50 per cubic metre, an increase of more than 6,000 per cent for hill logs.
Sapuan in his WhatsApp reply to The Borneo Post yesterday briefly stated that “The hill timber premium increase(s) from 80 sen to RM50 is meant for educational purposes (for) Yayasan Sarawak Fund. Collection of 80 sen (was enforced) since 1984 and (has) never been increased for the past 30 years”.
He clarified that the new premium would affect all forest timber licences including Yayasan Sarawak concession areas.
Meanwhile Assistant Minister of Resource Planning Datuk Mohd Naroden Majais said the proposed increase is indeed timely as the current rate of RM0.80 per metric tonne of any species of hill logs and RM3 per metric tonne of logs of hill species from areas converted from agricultural use to commercial use is extremely low.
“When you sell timber, the market does not really care whether logs are from peat, from NCR land or from hills as the market prices more often than not depend on global demand and supplies as well as economic situation.
“As I remember way back in early 90s, when tender was called to work on few timber areas, contractors were willing to pay as high as RM130 per metric tonne. This might be due to good demand for timber at that time. But the demand now compared to before is much different as demand for processed timber has increased tremendously as supplies are on the down trend,” he said.
Naroden stressed that quality timber has also decreased, so the markets cannot be too choosy, hence the prices should be higher.
“Personally, I feel that RM50 per tonne is still too cheap. Furthermore, if the premium is for Yayasan Sarawak, it is for public purposes to finance our children’s education, be it loans or scholarships, build more educational infrastructures and so forth. Therefore, I feel that this increase should be viewed positively by all licensees and contractors as well as by public at large as the decision was taken in good faith,” he said.