KUCHING: WTK Holdings Bhd’s log production plunged sharply after the group divested its loss-making timber subsidiaries involved in logging operations.
In the third quarter ended September 2025 (3Q2025), WTK’s log output tumbled 61 per cent to 18,551 cubic metres (cu m) from 47,486 cu m in the previous quarter (2Q2025), according to its filing with Bursa Malaysia.
Year-on-year, output dropped even more steeply — down 76 per cent from 77,977 cu m in 3Q2024. For the first nine months of 2025 (9M2025), total log production fell 53 per cent to 113,772 cu m, compared with 241,261 cu m in the same period last year. Last month alone, production stood at a mere 396 cu m.
The slump follows WTK’s disposal of two wholly-owned timber subsidiaries — Piramid Intan Sdn Bhd (PISB) and Immense Fleet Sdn Bhd (IFSB) — for RM40.35 million cash.
PISB was the main contractor for the Sarawak Timber Industry Development Corporation (STIDC) in logging merchantable timber over 92,172 hectares in Batang Baleh, Kapit. In 2024, it harvested 33,592 cu m of timber and posted RM11.3 million in revenue but recorded a post-tax loss of RM1.12 million.
IFSB, which managed 61,749 hectares of licensed planted forests in the Oya-Kanowit-Katibas and Bukit Raya areas, produced 157,000 cu m of logs and 14,536 tonnes of fresh fruit bunches (FFBs) in 2024. Despite RM29.77 million in revenue, it suffered a wider loss of RM30.28 million, compared with RM22.34 million in 2023.
As of December 31, 2024, WTK held six timber concessions covering 194,000 hectares and operated two others totalling 207,000 hectares as a contractor. It also oversees about 62,000 hectares of reforestation areas under 60-year Licensed Planted Forests along the Baleh and Rejang rivers.
WTK said the divestments reflect efforts to exit non-core timber assets and redeploy resources toward growth areas such as oil palm plantations and food operations. Its timber segment returned to profit in 2Q2025 with a pre-tax gain of RM650,000, following the cessation of plywood manufacturing earlier this year.
Meanwhile, another Sibu-based timber and plantation group, Jaya Tiasa Holdings Bhd, also reported weaker performance. Its 3Q2025 log output dropped 12 per cent quarter-on-quarter to 22,271 cu m and was down 21 per cent year-on-year. For 9M2025, production fell 15 per cent to 65,383 cu m, with September output at 7,988 cu m.
Jaya Tiasa manages 413,801 hectares of timber concessions across three forest management units and 120,395 hectares of reforestation land, of which 75,622 hectares are plantable. As of end-2024, total planted forest stood at 45,966 hectares. The group exited plywood manufacturing five years ago and now relies mainly on oil palm plantation and milling for revenue.
