The Sarawak Forest Department has confirmed that the Sarawak government will cut royalty rates and selected statutory charges on natural forest timber by 50%, in a temporary move aimed at stabilising the state\u2019s forestry sector.<\/p>\n
The reduction applies to all Forest Timber Licences (FTL) and Forest Plantation Licences (LPF), and will take effect within two weeks, pending system updates. The measure will remain in place for one year and is subject to review. It excludes the Timber Industry Tariff H0272502.<\/p>\n
The policy comes as mounting cost pressures\u2014rising fuel prices, global market uncertainty and supply chain disruptions\u2014continue to weigh on the sector. According to SFD, these dynamics have already triggered a structural shift, with producers increasingly favouring export markets where margins are higher, at the expense of domestic processing.<\/p>\n
\u201cThe reduction aims to provide immediate cost relief, improve operational viability, stabilise profit margins, strengthen domestic timber processing and ensure continued industry participation and supply stability,\u201d the department said.<\/p>\n
Officials warn that, if left unaddressed, the pivot toward export-oriented production risks weakening Sarawak\u2019s domestic processing base and disrupting the balance of its timber value chain.<\/p>\n
The measure, approved under the leadership of Abang Johari Tun Openg, is framed as a targeted economic response rather than a long-term subsidy. Its built-in time limit signals that the government intends to reassess market conditions before extending support.<\/p>\n
SFD projects that timber production will stabilise at around 1.73 million cubic metres annually, reflecting improved confidence among operators as cost pressures ease.<\/p>\n
At the same time, the state is maintaining its focus on sustainability. More than 57 million trees were planted between 2021 and 2025 under programmes such as the Sarawak Greening Campaign and Forest Landscape Restoration (FLR), marking the highest tree-planting achievement in Malaysia.<\/p>\n
Authorities are also accelerating the development of large-scale forest plantations to reduce reliance on natural forests, while expanding downstream uses of wood waste. These include wood pellets, biochar and waste-to-energy applications, aimed at improving resource efficiency and opening new revenue streams.<\/p>\n
Despite the temporary relief measures, the government has reiterated its commitment to sustainable forest management and responsible resource use.<\/p>\n
Abang Johari said the decision reflects a pragmatic response to current economic pressures, while ensuring the forestry sector remains resilient, competitive and positioned for long-term stability.<\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":98451,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[],"class_list":["post-98450","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\n