Awg Tengah: Sarawak’s export value of timber products declined 23 pct as of 3Q of 2023

KUCHING (Nov 29): Sarawak’s export value of timber products recorded a decrease of 23 per cent to RM2.3 billion until the third quarter (3Q) of 2023, said Datuk Amar Awang Tengah Ali Hasan.

The Second Natural Resources and Urban Development Minister said this is when compared to the RM3 billion export value of timber products in the same period of 2022.

“The decrease in export value is the effect of the reduction in the total export volume of the main product, which is plywood,” he said when winding up his ministerial speech at the State Legislative Assembly (DUN) Sitting here today.

He noted that Japan remained the main importer of Sarawak’s timber products, especially plywood, contributing as much as RM1.2 billion or 52 per cent of the state’s total export value.

“Other major markets included India (RM381 million), Middle East countries (RM189 million), Taiwan (RM121 million), and China (RM104 million),” he said.

The Deputy Premier said the export of timber products was still focused on the export of the primary product and therefore, timber industry players are recommended to be more committed to implementing the transformation of their activities and operations towards the production of high value-added wood products by using more raw materials from forest and bamboo plantations.

“For this purpose, the government will continue to empower downstream industries such as the biomass industry, furniture industry, bamboo-based industry and engineered wood,” he added.

He said biomass products such as wood pellets, biochar and charcoal briquettes are in high demand in the global market as they were more environmentally friendly fuels compared to fossil fuels.

“Until the third quarter of this year, Sarawak has exported wood pellet products to Japan, France and Korea worth RM36 million.

“In addition, this product also has great potential for green energy generation in the state in line with the aspirations of the Sarawak government to empower Sarawak’s Green Energy Policy.

“This wood pellet product can be produced from various sources of raw materials such as wood waste, oil palm trunk (OPT), empty fruit bunch (EFB) and bamboo,” he said.

Along with the aspiration to increase high value-added timber products, Awang Tengah said the Sarawak Timber Industry Development Corporation (STIDC) is preparing the Engineered Wood Product Blueprint to provide guidelines and directions for the development of the engineered wood industry in Sarawak.

“The development of this industry is expected to be a game changer to achieve high added value products as well as optimise the use of raw material resources from forest plantations.

“STIDC is also actively implementing research and product development initiatives or R&D in smart collaboration with research and higher education institutions. It also involves the direct cooperation of the timber industry,” he said.

On bamboo, Awang Tengah said the global export value of bamboo-based products in 2022 is US$66.2 billion and is expected to grow at a rate of four per cent per year.

“In the same year, the total export value of Malaysian bamboo products reached RM8.4 million.

“While for Sarawak, the market value of bamboo products is as much as RM1.2 million,” he said.

He said according to a study by the International Network for Bamboo and Rattan (INBAR) based in Beijing, China, bamboo can absorb four times more carbon and produce 35 per cent more oxygen than tree species.

“Therefore, apart from being a source of raw materials for downstream industries, bamboo cultivation activities also have high potential to be developed for the purpose of carbon trading.

“The Sarawak government through STIDC has targeted 10,000 hectares of area for bamboo cultivation by 2030 as a source of raw materials for downstream industries,” he said.

He added that to date, an area of ​​3,661 hectares has been planted with various bamboo species by the industry and community.