Kota Kinabalu: The Sabah Timber Industries Association (STIA) urged the State Government to intensify support for the timber and wood-based sector, which is at a critical juncture amid mounting structural and global challenges and pressures to remain competitive and sustainable.
STIA President Tan Peng Juan, while extending congratulations to the newly-formed Sabah Cabinet under Chief Minister Datuk Seri Hajiji Noor, said there is an urgent need for the Government to act decisively to safeguard the future of an industry that supports thousands of livelihoods and contributes significantly to the national economy.
He said without such solid action, the timber sector may struggle to sustain itself in the years ahead.
“Sabah’s timber industry remains a vital contributor to the State’s economy, providing employment, supporting rural communities and generating significant export revenue.
“In 2024, Sabah’s export of forest products generated RM1.13 billion, underscoring the sector’s continued relevance,” he said, in a statement, Wednesday.
Tan warned that without strategic intervention, the industry could struggle to remain sustainable and competitive.
He also pointed out several growing pressures on the sector, beginning with its dependence on tropical logs.
“A key instrument to guide the industry forward on Industrial Tree Plantation (ITP) will be the Action Plan on Forest Plantation Development (2022-2036), designed to accelerate the transition towards Industrial Tree Plantations (ITP).
“The industry hopes the Government will continue to closely monitor concession licensees and their tree planting commitments, as the success of ITP will determine the long-term viability of the sector.
“The road ahead for ITP will not be easy and will involve significant challenges. The industry will not be able to overcome these challenges without strong and sustained government support,” he said, adding the current timber industry ecosystem remains heavily dependent on tropical logs.
STIA also raised concerns about labour shortages and critical gaps in labour requirements affecting both upstream and downstream activities.
“The industry remains heavily reliant on foreign workers with skills tailored to traditional tropical timber production, while a diminishing local workforce and ageing demographics compound the problem.
“Many Sabahans with qualifications in wood and forest-based fields continue to struggle to find suitable roles that match their expertise and wage expectations,” he said.
He emphasised the urgent need for major investments in both upstream and downstream that will bring in technology, automation and Industry 4.0 processes to counter the changes in the workforce.
“Future potential investment in this sector will depend heavily on the success of Sabah’s current and future progress in ITP,” he said.
Tan said Sabah’s timber exporters also face global market uncertainties, including fluctuating demand, changing regulations and tightening sustainability standards in key export markets.
“Export markets often impose strict quality standards, sustainability certification requirements and tariffs that can limit access or increase costs for Sabah’s timber products.
“These trade constraints not only affect revenue and profitability but also place additional pressure on timber companies to maintain high-quality standards while adopting stringent sustainable practices.
“These factors impose higher costs and restrict market access, increasing operational pressures on industry players,” he said.
