Sarawak timber sector suffering reduced margins

Fonte:
ITTO/Fordaq
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Sarawak timber companies are seeing margins decline because of higher production costs of logging and the introduction of new tax structures in the timber sector.

According to the Sarawak Timber Association (STA) the increase in hill timber rehabilitation and development cess (tax), at RM55 per cu m has pushed up operating costs significantly.

In addition, rising wages, reduced harvest levels and implementation of forest management certification scheme had contributed to the current high cost of production.

By 2022, the Sarawak Forest Department wants all longterm forest timber licensees to achieve forest management certification to ensure sustainable management. Against this background the STA said the state forest industry is going through a period of transformation and a change from raw material supply from natural forests to supply from planted forests.

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