KUCHING: The Sarawak Timber Association (STA) has sounded the alarm over the continued decline of the state’s timber industry amid rising costs and falling production.
STA chairman Datuk Henry Lau Lee Kong raised the concerns during the association’s Annual General Meeting held today (Mar 31) at Wisma STA here.
Log production in 2025 remained low at 1,930,351 cubic metres, while plywood output declined from a peak of around 3 million cubic metres in 2008 to just 550,000 cubic metres last year.
Lau said geopolitical tensions, particularly conflicts in the Middle East, had driven up diesel costs across the timber supply chain, forcing some operators to scale down or suspend operations.
“These increases have raised operating costs across the value chain, particularly in fuel-intensive activities such as logging, extraction and transportation,” he said in his speech.
Lau noted that multi-billion ringgit worth of equipment lies idle, many workers have been retrenched, and companies are facing serious financial difficulties.
He urged the government to review royalty, cess and premium rates to provide relief to the industry.
“Targeted assistance would be most welcomed to sustain operations across both the upstream and the downstream sectors during this period of sustained cost pressures,” he added.
Despite the challenges, he reminded attendees of the industry’s long-standing contributions to Sarawak, including job creation, infrastructure development in remote areas and significant revenue generation for the state.
“All these were achieved while the industry endured hardships and financial risks,” he said.
He welcomed collaboration with the Forest Department and the Natural Resources and Environment Board on sustainability initiatives, including enrichment planting and environmental compliance audits.
He also called for forestry disciplines to be included in the state government’s Free Tertiary Education Scheme, which is partly funded by timber industry premiums.
On carbon initiatives, Lau urged caution, advising stakeholders to fully understand the evolving landscape before making any commitments.
“As this is an evolving global trend, many aspects remain to be explored and fully understood before jumping onto the bandwagon,” he added.
