Kota Kinabalu: The Sabah Timber Industries Association (STIA) has called on industry players to remain resilient and adaptable in the Year of Fire Horse 2026, although continues to face mounting global and domestic challenges.
STIA President Tan Peng Juan said they welcome the Year of the Fire Horse which symbolises renewed hope, determination and opportunity for the industry to press ahead despite uncertainties.
He said the sector had spent the past year navigating global market volatility, rising operational costs, tighter international regulations and persistent logistical constraints.
“Like the Fire Horse, we must continue to move forward with determination and adaptability, transforming challenges into opportunities for improvement and growth.
“Throughout the year, STIA has maintained close engagement with both state and federal authorities on key issues affecting the timber ecosystem, including forestry-related matters, labour regulations, market compliance requirements, logistics challenges and local concerns impacting both upstream and downstream players,” Tan said in his Chinese Year Message here.
He said such collaboration remains crucial to ensuring the industry’s long-term sustainability and competitiveness.
He said STIA also reaffirmed its commitment to strengthening Sabah’s position as a global supplier of sustainably managed tropical timber, amidst the challenges of rising costs, tighter regulations and logistical constraints.
“A significant milestone this year was the successful enhancement of the Sabah Timber Legality Assurance System Plus (Sabah TLAS+), developed in collaboration with the Sabah Forestry Department (SFD) and industry stakeholders.
“The upgraded TLAS framework strengthens Sabah’s legality and sustainability, aligning with evolving global market requirements, particularly the European Union Deforestation Regulation (EUDR) and EU Corporate Sustainability Due Diligence Directive (EU CS3D),” he said.
With the introduction of new principles on deforestation-free and enhanced due diligence elements for intended market, Tan said Sabah TLAS+ reinforces transparency, traceability and responsible forest management.
“STIA worked closely with the Sabah Forest Department and other stakeholders throughout the consultation process to ensure that the revised system remains practical and credible while meeting international expectations.
“The achievement of Sabah TLAS+ further strengthens further reinforces buyers’ confidence in global markets and strengthens Sabah’s reputation as a leader in sustainably managed tropical timber.
“During the recent Sabah TLAS+ launch, STIA also showcased products from member companies, including plantation timber and plantation species, to highlight the sector’s growth potential,” he said.
According to Tan, the industry has also moved towards digitalisation with the implementation of the e-Removal Pass (e-RP) system, replacing manual processes to an online system with digital approvals, QR code tracking and improved reporting to strengthen monitoring and full traceability of timber movement.
“This advancement improves efficiency, transparency and governance within the supply chain, signalling that Sabah’s forestry sector is steadily progressing towards a more modern and digitalised management framework,” he said.
At the national level, Tan said STIA continues to actively advocate through the Malaysian Timber Association (MTA) platform to address key issues and regulatory matters affecting the industry.
Among the priority concerns, he said include the European Union Deforestation Regulation (EUDR), developments under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) and policies affecting raw material supply, international trade and long-term sustainability.
“Attention has been given to developments under the CITES especially in light of increasing global scrutiny over timber-producing countries.
Growing proposals to list commercially important timber species under the CITES Appendices is one of the primary areas where time and energy has been focused on.
“Through MTA, STIA ensures that Sabah’s perspectives are effectively represented in national engagements with relevant federal ministries and agencies,” he said.
In line with STIA efforts to promote Sabah’s timber products locally and Internationally, Tan said STIA expanded market outreach through participation in trade exhibitions such as the World Expo 2025 in Osaka, Japan, the Malaysian Wood Expo 2025 in Kuala Lumpur, and the Shunde (Lunjiao) International Woodworking Machinery and Furniture Raw Material Expo 2025 in Shunde, China.
He said these platforms helped promote Sabah’s timber products and Industrial Tree Plantation (ITP) development to have continuous exposure, which are essential to enhance innovation, productivity and competitiveness as well as enabling companies to gain insights into new technologies, machinery and market trends.
However, Tan noted that many challenges remain ahead, particularly port-related issues, logistical bottlenecks and congestion continue to affect export efficiency.
“The rising cost of doing businesses plus the recent hike in electricity tariffs has placed additional pressure on manufacturers. At the same time, compliance with new and existing regulations has also raised operational expenses,” he said.
While reiterating the industry’s commitment to meeting all legal and sustainability standards, he called for a balanced and consultative approach in policymaking to ensure regulations do not undermine business viability, investor confidence or employment.
“With strong collaboration between industry and government, we can build a more sustainable, balanced and future-ready timber sector for Sabah,” he said, extending Chinese New Year greetings and wishing the community prosperity and success.
