KUCHING: Ta Ann appreciates the state government initiatives in seeking stakeholder inputs on the proposed forestry policies aimed at transforming the State’s forestry sector.
The group hopes that the viewpoints and suggestions that have been put across to the relevant government agencies in the recently concluded timber industry stakeholders consultation sessions will be carefully considered before the formation of any new policies.
The timber industry is presently going through a challenging period, mainly due to rising cost of production, emergence of substitute products and stiff competition from countries like Indonesia and Vietnam where the cost of production is much lower comparatively.
This negative impact is evident in the scaling down and the winding up of many timber processing facilities throughout the state.
As deliberated, the group will collaborate closely with the relevant government agencies by information sharing to facilitate a clearer understanding of the group’s timber division particularly the cost structure.
The company views that a correct understanding of the timber industry, including the interrelationship between upstream and downstream sectors as well as the ever evolving marketplace is important in the formation of win-win policies.
High cost of production will wipe out profit margins and defeat the object of spurring the development of the downstream sector and the timber industry as a whole.
A spokesman of the company said “Given the present scenario, additional cost burden will erode our competitive edge as buyers always have the option to switch to substitute products.
“Ramifications of misguided policies can be severe and irreversible as our hard earned market shares once lost, cannot be regained.”
Ta Ann is also committed to Sustainable Forest Management (SFM). In response to the state government’s aspiration to have all timber concessions certified with the aim to enhance SFM in Sarawak, the group’s Kapit Forest Management Unit (FMU) had attained its MTCS PEFC SFM certification on June 11 last year.
Efforts are actively being carried out to have its other 3 FMUs certified by 2020.
With respect to forest plantation, the group has embarked on research and development programmes to produce improved tree planting materials such as Acacia Maugium Superbark.
Such initiative is in line with the group’s plan to increase the utilization of plantation resources.
To date, the Group has planted over 30,000 hectares of predominantly Acacia species.