STIDC receives RM212 mln accumulated dividend from subsidiaries, associates as of Sept 24

KUCHING (Oct 10): The Sarawak Timber Industry Development Corporation (STIDC) has received an accumulated dividend of RM212 million from its subsidiaries and associates as of last month, said Deputy Premier Datuk Amar Awang Tengah Ali Hasan.

The Second Minister of Natural Resources and Urban Development said among STIDC’s active subsidiaries, several have fully paid the investment capital such as Harwood Timber Sdn Bhd, Tanjung Manis Resources Sdn Bhd, Saratim Insurance Agency Sdn Bhd, Tinamou Sdn Bhd, Teratim Sdn Bhd, Amra Timber Sdn Bhd, Balamra Sdn Bhd, Kestrel Sdn Bhd, and Selah Timber Sdn Bhd.

“We also have those companies who made us proud, like Tanjong Manis Resources Sdn Bhd (TMR) and Green Pellet (Sarawak) Sdn Bhd, which have successfully penetrated the export market since their incorporation.

“TMR exports woodchips and Palm Kernel Shell to Japan while Green Pellet (Sarawak) (GPS) for its wood pellet to Korea. Pusaka Capital, our investment arm, has also diversified into new sectors like oil and gas, biomass bamboo, agriculture (pineapple), and renewable energy,” he said in a speech for the opening of the Seminar on Navigating the Companies Act 2016 and Assessing the Duties, Responsibilities, Rights and Powers of Company Directors here today.

The STIDC chairman called the corporation’s underperforming subsidiaries and associates to revisit their vision and mission, formulate and implement a business turnaround plan, and create strategic initiatives and actions to turn around the businesses.

“You need to explore new business opportunities and find new sources of revenue. It is no longer sustainable for companies to rely solely on your shareholders to inject funds or provide loans. Self-reliance and self-governance are the pillars for future growth and sustainability,” he explained.

“This brings me to an important point: Sarawak is evolving, and so must our businesses. Under the PCDS (Post Covid-19 Development Strategy) 2030, the state aspires to become a high-income state by 2030.”

Awang Tengah said the timber industry alone is expected to achieve RM8 billion in annual export earnings by 2030, but Sarawak’s economic landscape is also transforming rapidly, particularly in areas like sustainability, the green economy, and renewable energy.

He said the state has undertaken several bold initiatives to strengthen its economic ecosystem and these developments offer significant opportunities for the STIDC group of companies.

“Our companies (subsidiaries) must proactively explore new markets, adopt green technologies, and consider sustainable practices to remain relevant in the long term,” he said in the speech read by Deputy Minister of Urban Planning, Land Administration and Environment Datuk Len Talif Salleh.

STIDC currently has 40 subsidiary companies and seven associate companies in activities from timber to bamboo, oil and gas, agriculture, forest plantation, biomass, furniture, port, airport, aviation, insurance, and hotel.