SABAH has set up a task force to focus on building up a robust downstream timber industry, which has been grossly underdeveloped due to the over-export of logs in the past.

Sabah Trade and Industries Minister Wilfred Madius Tangau said the state has a lot of catching up to do in terms of building up its processed timber industry, now that the government imposed a ban on log exports in May.

“At present the industrial contribution of the timber based industries stood around 7.5% or around RM6 billion to the state gross domestic product (GDP).

“This is very, very little,” he told reporters after witnessing the installation of the new Sabah Timber Industries Association committee in Kota Kinabalu, today. 

The timber downstream industry has huge potential, said Tangau, citing the value of processed timber in the Peninsular Malaysia which is presently worth RM22 billion.

The furniture segment alone was worth RM6 billion, the value of which is equal to the entire industry’s contribution to Sabah’s GDP.

According to him, the government has a role to build infrastructure, boost port operations and provide incentives which can assist industry players into developing the key enablers so the downstream activities can flourish.

Tangau said his ministry has already identified all the main challenges faced by the industry, citing port operations as being one of the areas the government is seriously looking at improving.

“The government will assure we will do all necessary to allow the key enablers to assist the process… we want to develop a 24-hour port operation in the East Coast districts like Sandakan, Lahad Datu and Tawau.

“This is not just for timber, but for all natural resources like rubber, palm oil and also oil and gas export,” he said. – August 20, 2018.