visit to the forest plantation industry of...

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1 This monthly news bulletin is produced by Sarawak Timber Association (STA) to disseminate information to our counterparts on training, research and other relevant areas. While every effort has been made to ensure that the information printed in this news bulletin is accurate and correct, neither STA nor its Officers, Members or Employees shall assume any responsibilities or be made liable for any inaccuracies and errors printed; nor is such publication unless otherwise stated necessarily the views of STA, its Officers, Members or Employees. The news bulletin is circulated to designated readers free of charge. Monthly news bulletin is produced by Sarawak Timber Association (STA) Editorial Board Chief Editor: Dr Peter C.S. Kho Editor/Secretary: Jaime Chan Members: Law Hui Chau Salfa Kamazura For Private Circulation Only October 2012 Issue 172 A delegation of fifteen (15) members comprising representatives from Forest Department Sarawak (FDS), Sarawak Forestry Corporation (SFC), Sarawak Timber Industry Development Corporation (STIDC), Harwood Timber Sdn Bhd, the Forest Plantation category of Sarawak Timber Association (STA) and the STA Secretariat visited the Sabah Forestry Department and a few forest plantation sites from 8 to 13 October 2012. The visit, hosted by the Sabah Forestry Department, was aimed at understanding the role of the Department in the forest plantation industry, as well as the operating procedures and equipment used for the harvesting and movement of plantation logs, including cess assessment procedures. The delegation paid a courtesy call to the Deputy Director of Forests (DoF) Sabah, Mr Fidelis Edwin Bajau in Sandakan, who provided an overview on the history and development of forest plantation in Sabah. As of June 2012 an area of 238,000 ha out of a targeted area of 400,000 ha had been planted. The species planted in Sabah are rubber, Acacia mangium, Eucalyptus grandis, Paraserianthes falcataria, Laran, Dipterocarp spp. Sabah’s log production from forest plantation surpassed a million m 3 in 2011. Members then visited the Hutan Lipur Khazanah and the Gum- Gum Plantation Research Station of Forest Research Centre of SFD. There are 50 research plots covering spacing and tree improvement trials of 12 indigenous and 22 exotic species in this Research Station. Visit to the Forest Plantation Industry of Sabah (Continue on page 2) Photo (right): Tree plantation harvesting using cable yarding system Photo (left): Courtesy call to the Deputy Director of Sabah Forestry Department

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Page 1: Visit to the Forest Plantation Industry of Sabahsta.org.my/images/staweb/Publications/STA_Rakan_/2012/...Gum Plantation Research Station of Forest Research Centre of SFD. There are

1

This monthly news bulletin is produced by Sarawak Timber Association (STA) to

disseminate information to our counterparts on training, research and other relevant areas.

While every effort has been made to ensure that the information printed in this news bulletin is accurate and correct, neither STA nor its Officers,

Members or Employees shall assume any

responsibilities or be made liable for any inaccuracies and errors printed; nor is such publication

unless otherwise stated necessarily the views of STA, its Officers,

Members or Employees.

The news bulletin is circulated to designated readers free of charge.

Monthly news bulletin is produced by Sarawak Timber Association (STA)

Editorial Board

Chief Editor:Dr Peter C.S. Kho

Editor/Secretary:Jaime Chan

Members:Law Hui Chau

Salfa Kamazura

For Private Circulation OnlyOctober 2012 Issue 172

A delegation of fifteen (15)members comprising representatives fromForestDepartmentSarawak(FDS),Sarawak Forestry Corporation (SFC),Sarawak Timber Industry Development Corporation (STIDC),HarwoodTimberSdnBhd,theForestPlantationcategoryof Sarawak Timber Association (STA)and the STA Secretariat visited the Sabah Forestry Department and a few forest plantation sites from 8 to 13October2012.Thevisit, hostedbythe Sabah Forestry Department, wasaimed at understanding the role of the Department in the forest plantation industry, as well as the operatingprocedures and equipment used for the harvesting and movement of plantation logs, including cess assessmentprocedures.

The delegation paid a courtesy call to the Deputy Director of Forests

(DoF) Sabah, Mr Fidelis EdwinBajau in Sandakan, who providedan overview on the history and development of forest plantation in Sabah. As of June 2012 an area of 238,000 ha out of a targetedarea of 400,000 ha had beenplanted. The species planted in Sabaharerubber,Acacia mangium, Eucalyptus grandis, Paraserianthes falcataria, Laran, Dipterocarp spp. Sabah’s log production from forest plantation surpassed a million m3

in 2011. Members then visited theHutanLipurKhazanahandtheGum-Gum Plantation Research StationofForestResearchCentreofSFD.Thereare50researchplotscoveringspacing and tree improvement trials of 12 indigenous and 22 exotic speciesinthisResearchStation.

Visit to the Forest Plantation Industry of Sabah

(Continue on page 2)

Photo (right): Tree plantation harvesting using cable yarding system

Photo (left): Courtesy call to the Deputy Director of Sabah Forestry Department

Page 2: Visit to the Forest Plantation Industry of Sabahsta.org.my/images/staweb/Publications/STA_Rakan_/2012/...Gum Plantation Research Station of Forest Research Centre of SFD. There are

2

STA dan Rakan2October 2012 Issue 172

Monthly news bulletin is produced by Sarawak Timber Association (STA)

Did you know that.....InOctober2012,anenvironmental taxwillbe introduced inJapanby thegovernmenttocontrolcarbondioxideemissionsthroughoutthecountry.Thenewtaxonnaturalgas,coal,oilandotherfossilfuelsisaimedatcuttingdownemissionsoftheheat-trappinggas.Themovemaycausethepriceforplastic,electricityandotherproductstoincrease.Thegovernment will levy the green tax as an extra charge on the existing coal and oil tax and itwillincreaseinApril2014,aswellasincreaseoncemoreinApril2016

Source: The Japan Times, 29 Sep 2012

The Sabah’s FLEGT Kick Start Workshopand Consultation was organised by Sabah Forestry Department on 8 October 2012 at Le Meridien Hotel,Kota Kinabalu, Sabah. Approximately seventy (70)participants from the Sabah timber industry and related GovernmentagenciesattendedthisWorkshop.

IntheopeningremarksbyDatukSamMannan,theDirectorofSabahForestryDepartment,heinformedthe participants that Sabah’s cabinet decision must be respected and that the terms and conditions set by Sabah must be met in order for Sabah to be part of the Forest Law Enforcement Governance and Trade, VoluntaryPartnershipAgreement(FLEGTVPA).Healsoinformedthe participants that Sabah will continue with developing their own Timber Legality Assurance System (TLAS)even if theyarenot joining thePeninsularMalaysia insigningtheVPA.

Four papers were presented during the Workshop.Theywere:

1. 2003 – 2013: The EU Forest Law Enforcement Governance and Trade (FLEGT) Action Plan, Almost fully operational byMrVincentvandenBerk,Programme

Coordinator,FLEGTAsia2. Updates on FLEGT VPA and TLAS Negotiation Process by Madam Loke Sim Wah,PROTEMSecretariatFLEGT

3. Development of Sabah TLAS byMrAndurusAbi,SabahForestryDepartmentandDrKevinGrace,GFSSdnBhd

4. WWF FLEGT Project in Sabah byMadamIvyWong,WorldWideFundforNature(WWF)Malaysia

Mr Frederick Kugan of Sabah ForestryDepartment facilitated the discussion on the next steps for FLEGT in Sabah. Some of the mattersthat were discussed were the revision of Sabah’s TLAS (Principle 1: Right to harvest, Principle 2:Forestoperations,Principle3:StatutorychargesandPrinciple 4: Other users’ rights) and to expend thescopeofTLASto include two(2)newprinciples i.e.Principle5:MillOperationsandPrinciple6:TradeandCustoms. The participants also discussed on auditing of the Sustainable Forest Management LicenseAgreement(SFMLA),coordinationoffundingandpilotprojects.

* * * * * * * * *

Sabah’s FLEGT Kick Start Workshop and Consultation

Visitstoforestplantationsitesweremadeoverthe next few days. The delegation visited Sabah Softwood Berhad(SSB)atBrumasinTawauwherethedelegateswere shown the mobile chipping machine and a cable yarding system for harvesting planation logs. They also visited the thinning trial plot of Eucalyptus pellita as well as its chip and small logs processing mill.

On the next day, members of the delegationvisited Sabah Forest Industries SdnBhd (SFI) and itsforest plantation at Sipitang where they were shown the harvesting process of tree plantation and were briefed by theenforcementofficerofSFDontheprocessofroyaltyassessment.

On the last dayof the visit, thedelegationpaidavisittoForestManagementUnit(FMU)No.11located at Sook inKeningauwhich is operated byBornion Timber Sdn Bhd (BT). They visited theNurseryLabauwheretheprocessofbuddingrubbertrees was demonstrated. They were then brought to a few plots of the rubber plantation of different ages as well as to a rubber tapping area. The visit culminated with a discussion on the process of royalty assessment for plantation logs in Sabah.

(Continued from page 1)

Page 3: Visit to the Forest Plantation Industry of Sabahsta.org.my/images/staweb/Publications/STA_Rakan_/2012/...Gum Plantation Research Station of Forest Research Centre of SFD. There are

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STA dan Rakan2October 2012 Issue 172

Monthly news bulletin is produced by Sarawak Timber Association (STA)

Did you also know that....A forest plantation scheme has receivedMYR 1.04 billion (EUR 262.13million/USD339.82million)allocationfromthegovernmentofMalaysia.ThiswasdonethroughthePlantationIndustriesandCommoditiesMinistry.Outofthetotal,MYR650millionhasbeendisbursedassoftloanto40participatingfirms.

Source: The Star, 25 Oct 2012

Discussion on EUTR and its related matter A discussion on the European Union TimberRegulation(EUTR)anditsrelatedmatterwiththeindustrywasorganisedbytheMalaysianTimberCouncil(MTC)on16October2012atMenaraPGRM,KualaLumpur.

The Discussion was moderated by Datuk YeoHengHau,aSeniorDirectorof thePublic&CorporateAffairsDivisionofMTC.HesharedwiththeparticipantsthatMalaysiahasembarkedonaForestLawEnforcementGovernanceandTrade (FLEGT)VoluntaryPartnershipAgreement (VPA) negotiation with the EuropeanUnion (EU) since September 2006. This includes theestablishment of the Timber Legality Assurance System (TLAS)toensurethatonlylegaltimberwillbeexportedtotheEU.HealsomentionedthattheVPAnegotiationiscurrentlyinitsfinalstage.However,uponsigningtheVPA,therewillbeaninterimperiodbeforeFLEGTlicensecanbeofficiallyissuedandtimberexportsfromMalaysiathen might still be subjected to the due diligence system.

Ms Sheam Satkuru-Granzella, a Director fromMTC London briefed on the EUTR and the impact onthetimberindustry.TheEUTRwillcomeintoforceon3March2013.AllimportsintotheEUandtimberproductswithintheEUaresubjectedtorequirementsoftheEUTR.TheEURegulationNo995/2010wasadoptedin2010tosupporttheEUFLEGTVPAprocesswhichisapplicabletonon-VPAsupplyingcountriesandinter-EU.

TheduediligenceundertheEUTRincludesthethreemainelementsi.e.(i)accesstoinformation,(ii)riskassessmentand(iii)riskmitigation(ofriskidentified).

Risk assessment is conducted tominimise therisk of sourcing illegally harvested timber and wood products.Theoperators(importers)intheEUareobligedto conduct risk assessment on suppliers. These operators will rely on suppliers to supply the required information in provingthelegality/sustainabilityofsource.TheEuropeantimber trade federations, nationalmember state timbertrade federations and monitoring organisations are all coming up with risk assessment procedures to assist theirmembersinfulfillingtherequirementsoftheEUTR.They are also on harmonising these procedures among

themselves. Riskmitigationisstepstakenbytheoperatorsand their suppliers to ensure to their best ability that the timber and/or timber products have been legallyharvested in accordance with applicable national legislation in the country of harvest. Operators and suppliers need to work together to ensure that timber from unknown sources have not entered the supply chain by using documentation to prove the source. Theserecordsmustbekeptforfive(5)years.

MsSheamSatkuru-Granzellaalsomentionedthatcertificationorother3rdpartyverificationschemethat include verification of compliance with nationallegislation in country of harvest may be accepted in the risk assessment procedure. These schemes include ProgrammefortheEndorsementofForestCertification(PEFC), Forest Stewardship Council (FSC), VerifiedLegal Compliance (VLC) and Forest Trust’s TimberTradeActionPlan(TTAP).

MrRajanSamikanoo,DirectorofEnforcementand Licensing of Malaysian Timber Industry Board(MTIB)spokeonthestatusoftheFLEGTVPAandthemeasures which have been taken to prepare for the impendingimplementationoftheEUTR.Hementionedthat the timber legality assurance system (TLAS) isatthefinalstageofdiscussionwiththeEU.Healsoinformed that a work plan for the implementation for TLAS and issuance of FLEGT Licence has beenprepared. The Guidelines for application of FLEGTLicencehasbeencompleted, howevernot ready forcirculation. MTIB shall be having four (4) dialogueson theGuidelineswith the industry inKualaLumpur,Penang,KualaTerengganuandJohorBahru.Thetrialrun for the TLAS shall be done by December 2012. He further informed the participants that the interimmeasurefortheEUTRpendingsigningofVPAistheproposalforMTIBtoissueMYTLASLicence,whichisbasedontheTLASforexportstoEU.

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4Monthly news bulletin is produced by Sarawak Timber Association (STA)

STA

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Persatuan Kayu Kayan SarawakSarawak Timber Association11 Floor, Wisma STA, Jalan Datuk Abang Abdul Rahim, 93450 Kuching, Sarawak, Malaysia.Telephone: ++(60 82) 332 222 Facsimile: ++(60 82) 487 888, 487 999E-mail: [email protected] Website: www.sta.org.my

ThefifthseriesofSarawakTimberIndustryLab(STIL)isacontinuationfromthepreviousfourlabswhichwas held from July to August 2012. These labs were organised by the Sarawak Timber Industry Development Corporation (STIDC), facilitated by Training Hub SdnBhd.Thefifthlabwasheldfrom22to25October2012atRiversideMajesticHotel,Kuchinginconjunctionwiththe recommendation from the Panel Members in thefourth lab held from 1 to 2 August 2012 and was attended byapproximatelyfiftyfive(55)participantsfromvariousagencies.Theobjectivewastofinalisethelabfindings

and formulate the policy for the timber industry which is expected to be implemented by 2013.

Participantsweredividedingroupstoreviewthe current Sarawak Timber Industry (STI) statusagainst other competitors to determine the causes of the gap and recommended appropriate solutions. The participants also deliberated the causes that delayed the achievement of the targeted 1 million ha of planted forest by 2020 and suggested recommendations to the State and Federal Government to solve theplantation issues. Lastly, participants summarisedthespecificactionstodeveloppolicystatementpriorto the determination of industry growth rate and projection. The policy statements covered NaturalForest, Plantation Forest, Marketing, Manpower,Downstream Industry Development and Researchand Development.

The participants were informed that a presentation on lab findings to the Panel Memberswillbeheldon26November2012atSTIDC,WismaSumberAlaminKuching.

Sarawak Timber Industry Lab

Photo: Lab in session