Awang Tengah (centre) and Hashim (on his left) holding the Integrity, Governance and Anti-Corruption Award 2022 that was recently awarded to STIDC. Also seen were (from left) Haluyah, Zaidi and Abdullah.
KUCHING (Jan 28): The Sarawak government has planned to adopt the circular economy concept for the state’s timber industry in its future development plan, said Deputy Premier Datuk Amar Awang Tengah Ali Hasan.
The Second Minister for Natural Resources and Urban Development pointed out that the state government has developed timber processing zones to enable the industry to operate in designated industrial areas.
According to him, this initiative helps promote vertical and horizontal integration, and also improve raw material utilisation efficiency.
“Even mill residues are being processed into products like wood chips, Medium Density Fibreboard (MDF), particleboard, briquettes, charcoal and pellets. To the timber industry now, ‘nothing should go to waste’.
“This is in fact similar to circular economy. The proposed furniture parks will also be developed using the circular economy concept,” he said in his speech at the Sarawak Timber Industry Development Corporation (STIDC)’s 50th anniversary gathering here yesterday.
Awang Tengah, who is also the Minister for International Trade and Investment, said that the timber industry, like any other industry in the world has also been disrupted by the unprecedented Covid-19 pandemic.
To restore and recover from this global pandemic, he said the state government has introduced and implemented the Post Covid-19 Development Strategy 2030 as a state-wide development strategy for economic recovery with the timber industry being identified as one of the important economic sectors to transform Sarawak into a developed state by 2030.
Adding on, he said in order for the sector to generate a targeted annual export earnings of about RM8 billion by 2030, the timber industry must adapt to changes and be transformed from primary based industry into high value-added processing.
“The target industries are panel-based, engineered wood, furniture and bamboo-based products. To enhance competitiveness, the upgrading of technology is essential, where appropriate IR4.0 should be applied.
“The industry must be efficient in processing plantation materials like timber and bamboo to produce innovative products which are competitive in the global market,” he stressed.
As an important economic sector to the state, he added that it is crucial to continue developing the timber industry in a sustainable manner.
All long-term timber licensees in Sarawak will be fully certified by 2025 to ensure strict adherence to the forest management requirements, he said.
“The development of planted forests must be enhanced to produce high yield and quality logs to accelerate growth for domestic timber downstream industry.
“The potential of fast-growing bamboo plant is to be capitalised as new material to support the industry. Biomass from agriculture plants especially rubber wood must also be utilised fully.
“Ultimately, the industry will grow into a sustainable industry without relying on natural forests for supply of raw materials,” he noted.
Through a developed forest plantation which ensures sustainable and renewable supply of raw materials for the timber industry, he urged the industry players to be innovative in utilising timber from plantations to produce high value-added products such as engineered wood, panels and furniture.
“The timber industry can focus to produce biomass fuel as substitute to fossil fuels. Wood pellets are carbon neutral from timber biomass, planted logs/bamboo and mill wastes.
“Sarawak has the potential to be the major biomass pellet producer both for domestic and export markets. Bamboo can be used to produce biochar, pellets and activated carbon,” he said.
Also present at the event were Permanent Secretary Ministry of Natural Resources & Urban Development Datu Zaidi Mahdi; Land and Survey Sarawak director Datu Abdullah Julaihi; STIDC general manager Datu Hashim Bojet; STIDC deputy general manager Haluyah Awi and other invited guests.
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