Timber players face uncertainties

KUCHING: Timber players globally are facing uncertainties in tenure security as they require long and secure tenure to implement sustainable forest management, preventing deforestation in line with the 17 Sustainable Development Goals of the United Nations, according to Sarawak Timber Association Datuk Henry Lau.

“With regrets, I believe that most of the timber players, including those in Malaysia in general, Sarawak in particular, are facing insecurity of tenure. “What is the effect of this uncertainties?

It is my humble view that all stakeholders should incorporate this issue as part of the constraint to achieve economic, social and environmental attainments,” he said in a presentation on

“The key challenges and difficulties of international cooperation in timber supply chains” during the session on “Global Cooperating and Sharing Platform for the Timber Industry” at the recent Global Legal & Sustainable Timber Forum 2023 held in Macau.

His paper is available on STA website. Lau added, “with due respect to various good governance bodies, NGOs (government linked organisations) and environmentalists, how many of you advocate for the government to adhere to the same standards of good governance in issuing licences and permits and in establishing operational rules and regulations, taxes and levies without consultation and other due processes?

“After all, government is a critical entity that we entrust to implement sensible and determined policies so that we can achieve attainable legal and sustainable timber activities.

Mind you, legal timbers often are not sustainable or green.” Lau said timber industry players are frequently labelled and prescribed and perceived as culprits solely driven by economic gain and often neglecting broader concerns.

In reality, he pointed out that when illegal activities take place, there is a tendency to assume that operators from timber industry are involved, prioritising economic gain over the well-being of forests and environment, consequently contributing to global warming and potential climate disasters.

“In fact, when an NGO receives a complaint from local inhabitants showing photos and video of logging activities, the general perception often implicates the timber players, suggesting a recurrence of exploitation, suppressing helpless local natives and instances of land grabbing.

“How often do we pause to consider who the actual culprits are, and in doing, so, do we remember the responsible timber players who have contributed positively in the past?”

Lau asked: “For those who are committed to carrying out their timber activities with an emphasis on delivering economic values while equally maintaining social and environmental well being and good governance, where can they find help and assistance?

“In fact, many view the cessation of forest harvesting for economic gain as absurd, often failing to realise that if forests have no economic value, they are vulnerable to conversion for other uses. The Brazilian Amazon forest serves as the most prominent example of this phenomenon.”

He said another challenge faced by the timber players is ensuring compliance with various timber legislations enforced by consumer countries as well as gaining market recognition for efforts undertaken by producing countries.

“The timber legislation can be highly complex and differ significantly from one country to another. Inconsistent definitions, regulations and requirements can create trade barriers, confusion and inconsistencies in international cooperation efforts. “More resources, capacity building and additional manpower are needed to comply with diverse legal requirements which translated into higher cost.

These requirements have translated into exorbitant costs that are, regrettably, not adequately offset by the prices of our products.

“This unjust situation places our producing country at a significant disadvantage on the global stage. Failure to acknowledge the invaluable efforts and significance our forests could precipitate the conversion of these forested areas into more profitable commodities, such as palm oil production and cattle farming.”

Commenting on the European Union (EU) Deforestation-free Regulation (EUDR), Lau said it is poised to take a resolute stand against commodities linked to deforestation and degradation, including timber, in the EU market starting Dec 30, 2024 or June 30, 2025 for micro and small businesses. Under this regulation, commodities entering the EU market must be deforestationfree, produced in legal compliance and covered by a due diligence statement.

“This regulation poses a significant challenge for tropical timber-producing countries because they still need to develop their nations. This situation could lead to a vicious cycle as market share is lost.

These producers will experience reduced income, potentially increasing poverty, which in turn may contribute to an increase in deforestation as a means of survival,” he added. Lau said timber is one of the best renewable materials with a low carbon footprint, and when sourced from responsibly managed forests, it can be an environmentally friendly material.

“Timber products are commonly used in residential, commercial and industrial settings due to their durability, aesthetic appeal and versatility. However, the rise of alternative materials like plastics, steel, aluminium, composites and engineered wood products, has made them an increasingly popular choice for consumers.

This poses a threat to the timber industry as it could reduce demand for timber and timber products.” Lau called for greater efforts to promote the utilisation of timber as sustainable materials in alignment with the circular bio-economy. On global deforestation, Lau said based on World Resource Institute data, the global loss of tropical primary forests in 2022 rose by 10 per cent to an astonishing 4.1 million hectares from 2021. Brazil tops the list with forest loss by area of 1,767,100 hectares (43.1%), followed by Democratic Republic of the Congo 512,500 hectares (12.5%) and Bolivia 385,400 hectares (9.4%). Last year, Indonesia recorded primary forest loss of 229,600 hectares (5.6%) and Malaysia 69,700 hectares (1.7%).

“Deforestation in the tropics is often associated with the expansion of commercial agriculture, timber extraction, forest fires and infrastructure development. “Global leaders, through various international platforms, such as the New York Declaration on Forests in 2014 and the 2021 Glasgow Leader’s Declaration on Forests and Land Use, have pledged to halt and reverse forest loss.

“However, after decades of monitoring against forest loss and various initiatives taken, the pertinent question is why the astonishing loss is continuing persistently?”

Lau hoped that the Global Legal and Sustainable Timber Forum 2023 would serve as an ideal platform for addressing tropical forest issues, fostering discussions and generating actionable solutions pertaining to the key challenges and difficulties of international cooperation in timber supply chains — not only the broader perspective but also examining the constraints and challenges faced by various quarters, including the loggers, NGOs, government and even certification bodies, the general population and media.

Only this way, forests will be treated with sensibility and appreciation, ensuring valuable forests can be sustainably managed for economic, social and environmental attainments, he concluded.