{"id":77873,"date":"2019-07-30T07:39:28","date_gmt":"2019-07-30T07:39:28","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/plywood-production-in-malaysia-threatened-by-declining-log-supplies-and-rising-costs\/"},"modified":"2025-09-19T08:51:19","modified_gmt":"2025-09-19T08:51:19","slug":"plywood-production-in-malaysia-threatened-by-declining-log-supplies-and-rising-costs","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/plywood-production-in-malaysia-threatened-by-declining-log-supplies-and-rising-costs\/","title":{"rendered":"Plywood production in Malaysia threatened by declining log supplies and rising costs"},"content":{"rendered":"
\n

The media in Sarawak recently highlighted the impact declining log production and rising production costs are having on the plywood industry in Sarawak.<\/strong><\/em><\/p>\n

Hashim Bojet, General Manager of the Sarawak Timber Industry Development Corporation, (STIDC) said he is concerned that, because of the log\u00a0<\/span>shortage and rising production costs, some plywood mills, including the major producers in Sarawak, have had to cut production and that some are considering closing operations entirely.<\/p>\n

Industry analysts point out that increased charges by the State such as the \u2018cess\u2019 and \u2018premium\u2019 are the main causes for the higher production costs. Since July 2017 the Sarawak government has raised the \u2018premium\u2019 to RM50 per cubic metre for all species from hill forests as well as logs of hill species from agro-conversion areas. Previously the \u2018premium was RM0.8 per cubic metre.<\/p>\n

The increase in hill timber \u2018premium\u2019 and the rehabilitation and development \u2018cess\u2019, which amounts to RM55 per cubic metre has raised the cost of logs and timber products by around RM110 per cubic metre (assuming a recovery rate of 50%). (Note: Premium and Cess are financial mechanisms which allow States in Malaysia to capture payments from concessionaires).<\/p>\n

According to Hashim, the Sarawak government has allowed plywood mills to import logs adding this is exactly what other countries such as India, Vietnam and Japan doing in order to maintain production.<\/p>\n<\/div>\n

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The media in Sarawak recently highlighted the impact declining log production and rising production costs are having on the plywood industry in Sarawak. 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