Timber exports to increase to RM23 billion in 2017

BorneopostFri, Nov 10, 2017

KUALA LUMPUR: Exports of timber and timber products are expected to improve to RM23 billion this year from RM21.86 billion reported in 2016, says Deputy Minister of Plantation Industries and Commodities Datuk Datu Nasrun Datu Mansur.

He said the government recognised the sector’s importance towards the economy, therefore, various efforts such as developing talent capabilities in designing wood furniture were put in place to ensure its success.

“The Malaysian Timber Council (MTC) will also continue to provide financial incentives to strengthen local players’ foray into the global market,” he told reporters after officiating the ‘Second MTC International Conference on Wood Architecture’ yesterday on behalf of Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong.

The text of the minister’s speech, read by Datu Nasrun, highlighted that the timber sector accounted for 18 per cent of total export earnings of the commodity sector and remained as one of the major foreign exchange earners for Malaysia.

In the first eight months of this year, export of timber and timber products rose by seven per cent to RM15.45 billion compared with the corresponding period in 2016.

Besides exports, Mah said the government also encouraged the use of timber in the building construction industry as it saved time and reduced the need for manpower.

“The use of Industrialised Building System (IBS) components with a minimum score of 70 per cent in government projects has been made mandatory and we are also evaluating the proposal to make the IBS compulsory for the national construction industry,” Mah added.

Meanwhile, MTC chief executive officer Datuk Dr Abdul Rahim Nik said the one-day conference, which was first organised in 2015, served as a platform for participants to gain knowledge on the benefits and attributes of timber.

“Various studies showed that wooden interiors reduce stress and improve a person’s emotional state.

“Furthermore, its use in building construction in the form of engineered timber products reduces construction cost and performs better in fire compared with steel and concrete. The potential of timber is endless,” he added. — Bernama


Third management plan for Sabah forest management unit approved, says Priceworth

TheEdgeWed, Oct 25, 2017 - 2 weeks ago

KUALA LUMPUR (Oct 25): Priceworth International Bhd said the third forest management plan for a forest management unit in Trus Madi, Sabah it is seeking to acquire has been approved.

In a statemenmt today, Priceworth said the approval by the Sabah Forest Department was accepted by Anika Desiran Sdn Bhd (ADSB), which owns the rights to manage, replant and harvest the Forest Management Unit No 5 (FMU5).

Through its Singapore subsidiary GSR Pte Ltd, Priceworth is seeking to acquire ADSB and FMU5 from Transkripsi Pintar Sdn Bhd for RM260 million.

Priceworth executive director Richard Koo said that with the approval of the plan for the period Sept 1, 2017 to Aug 31, 2027, a condition precedent of FMU5’s acquisition has been deemed fulfilled.

The first condition precedent to be fulfilled was in May, with the Sabah Forest Department’s approval of repair, upgrading and harvesting operations in two compartments of FMU5.

A Singapore Exchange listing is being planned for GSR, which has also proposed to acquire sister company Sinora Sdn Bhd, Priceworth’s plywood manufacturing arm.

FMU5 is part of 1.8 million hectares of Class II commercial forest reserves being managed under the Sustainable Forest Management Licence Agreements, which are guided by FMPs as regulated by the Sabah Forest Department.

One requirement of the forest management plan was already met in November 2016, with the surrender of 12,241 hectraes from FMU5 to be conserved as a Class I protected forest. This area has been fused with FMU10, now known as the Nuluhon Trusmadi Forest Reserve.

With the excision, FMU5 now comprises 88,920 hectraes with tenure of 81 years remaining. One of the remaining condition precedent to the deal is the execution of a supplementary agreement to reflect the excision, Priceworth said.

In conclusion
Timber industry was at bottom. Good news as timber export increase will helps this industry player to get a better financial result. Pworth is my pick among the three company because it's lagging from the other two, Wtk and jtiasa price has start to move. Besides, Pworth just get approval from the government to expand it's business in Sabah for 88,920 hectraes of land.

Good Luck!