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Registrations of Downstream Processing Facilities

The Dewan Undangan Negeri Sarawak during its sitting in July 2006, had amended relevant Sections of the Forests Ordinance [Cap. 126 (1958 Ed.)] and the Sarawak Timber Industry Development Corporation Ordinance, 1973 [Or. No 3/73] to eliminate overlapping of functions and responsibilities between the 2 agencies.

The re-definition of a sawmill in the Forests Ordinance [Cap. 126 (1958 Ed.)] as "any factory or premises where timber is cut or sawn or hewn or converted into small sizes or marketable products but no article, product or furniture is to be manufactured or produced from such timber". Registration of sawmills will continue to be handled by the Forest Department Sarawak.

The essence to the amendment to the Sarawak Timber Industry Development Corporation Ordinance, 1973 [Or. No 3/73] is the new Part IIA - Registration with Corporation, which says " No person shall establish, manage or operate any plant, factory or premises for carrying on any timber industry unless he is registered with the Corporation and holds a valid Certificate of Registration issued by the Corporation in accordance with regulations made under Section 24…..".

The Association was given to understand that in respect of the above amendments and with effect from 1 January 2007, all registrations of downstream processing facilities will no longer be handled by the Forest Department Sarawak but by STIDC instead. In view of this, any members who are in the process of registering their facilities with the Forest Department Sarawak but have yet to complete the process are advised to take action accordingly before this proposed implementing date. For example, there may be an issue for all current uncompleted registrations where Forest Department Sarawak had approved the layout plan but inspections of the manufacturing facilities are still pending. With effect from 1 January 2007, the Forest Department may not be in a position to carry out any such inspections.

Applied Forest Science Research Seminar 2006

The Applied Forest Science & Industry Development Business Unit (AFSID) of Sarawak Forestry Corporation will be organising a research seminar with the theme "Towards Research Applications and Product Development - The Way Forward". Details as below:-

Date: 2 - 3 November 2006
Venue: Hotel Grand Continental Kuching
Time: 8.00 am - 5.00 pm
Closing Date: 27 October 2006

The Seminar will provide a venue for exchange of information and generate interest in research applications related to forest biodiversity, conservation, environment and forest product development.

Copy of the Registration Form is available from the STA Secretariat Kuching. For more information, please contact;

Mr John Sabang
The Secretariat
AFS Research Seminar 2006
Tel: 082-613862 / 610614
Fax: 082-617953
e-mail: jsabang@sarawakforestry.com

List of Products Proposed under the "Preferential Trade Agreement Among D-8 Member States"

A letter had been received from Malaysian Timber Industry Board (ref (7)dlm. LPKM 2/006 Vol 19 dated 11 October 2006) informing us that D-8 Preferential Trade Agreement (D-8 PTA) has been signed in Bali Indonesia on 13 June 2006 which involving Bangladesh, Egypt, Iran, Indonesia, Malaysia, Nigeria, Pakistan and Turkey.

Under the D-8 PTA, all member countries will render 8% of the total tariff lines with tariffs exceeding 25% for reduction. The said tariff reduction will be implemented in four stages from mid 2007 until 2011.

For your information, Malaysia has offered 243 tariff lines out of which are under the Ministry of Plantation Industries and Commodities (MPIC) and all these are timber products with an MFN tariff of 20%. Under this PTA, these products tariffs will be reduced by 1% each year for 3 years, 2% in the fourth year and the final tariff will be 15%. The list of the products in question is attached. Please click here.

Launching Ceremony - Post Graduate Diploma in Applied Science (Sustainable Tropical Forestry Management)

STA launched its Post Graduate Diploma in Applied Science (Sustainable Tropical Forestry Management) Course on 10th of October, 2006. The ceremony was officiated by YB Dato Sri Haji Awang Tengah Ali Hassan, Second Minister of Planning and Resource Management.

It is a course jointly developed by Sarawak Timber Association and Lincoln University, New Zealand. This is the first time such a course is taught in Sarawak and STA is happy at the response shown by members: 27 students applied to Lincoln University for admission, and all were accepted and registered for this course.

The course is for sustainable forest managers in Sarawak and aims to bridge the documented knowledge of SFM with skills on the ground. For more information, please click here.

An Advisory Group was formed by STA to advise and guide this Post Graduate Course. The Group is made up of nine experts from various relevant fields. For more information, please click here.

The mode of lecturing is very much a product of the internet age. All students use a notebook computer in class which has wireless internet connection to the Lincoln University's library resources which are based in Christchurch, New Zealand. Reference material is also available in STA's own Resource Centre and Exhibition Centre.

Above: YB Dato Sri Haji Awang Tengah Ali Hassan ringing the bell to officially launch the Course. Witnessed by (from left) Datuk Leo Chai (Chairman of STA), Dato Henry Lau, Mr Lau Swee Nguong, Dr Hugh Bigsby, Datu Cheong Ek Choon and Mr Phillip Choo

Above: Pöwhiri - A canoe-hauling chant to symbolically pull the 'canoe' of the visitors to the marae ie. Meeting house

Above: Ka Mate - Ceremonial Haka and is an action chant

Above: Class photo - Happy students of year 2006

Above: Class in progress

Above: Picture shows the Advisory Group after a meeting on 10 Oct 2006 in Kuching. Members from left to right: Langub, Gumal, Yusuf, Roszehan, Freezailah, Wong, Leigh and Cheong. (Patrick Durst absent, John Leigh represented Manoel Sobral)

Employment of Non-Resident Employee under Section 119 and 119A of Labour Ordinance (Sarawak Cap. 76)

On 13 September 2006, STA received a letter from the Director of Labour Department Sarawak (the Director of Labour) pertaining to the employment of non-resident employee. The letter serves to inform that the Labour Ordinance (Sarawak Cap. 76) (Amendment) 2005 [A 1237 Act] was gazetted on 10 February 2005 and took effect 1 October 2005. With that, an employer who wishes to employ a non-resident employee, categorised under the definition of "employee" under Section 2 of the Labour Ordinance (Sarawak Cap. 76), is required to apply for and obtain a licence from the Department of Labour Sarawak (the Department).

The term "Employee" and "Non-Resident Employee" are defined as follows:

    "Employee" means any person or class of persons-
    (a) included in any category in the Schedule to the extent specified therein; or
    (b) in respect of whom the Minister makes an order under subsection (7) of section 2A;

"Non-Resident Employee" means any person who does not belong to Sarawak as provided for in section 71 of the Immigration Act 1959/1963;

Employee who does non-manual work and with a wage not exceeding RM2,500.00 is also covered in the above definition. Therefore, an employer who wishes to employ a non-resident employee (manual and non-manual covered in the definition of employee) irrespective of the country of origin including Peninsular Malaysia and Sabah is required to apply for a licence under section 119 Labour Ordinance (Sarawak Cap. 76).

Employers who wish to employ non-resident employees must adhere to existing procedures. Guidelines are available on the Department's website: www.jtkswk.mohr.gov.my

Once the approval is granted by the Department to an employer to employ non-resident employees, the employer concerned is required to advise the Department within 14 days of the employment as stated in Section 119A Labour Ordinance (Sarawak Cap 76). The information required is as specified in Appendix A.

In relation to this, the Director of Labour hopes that members of STA are aware of these requirements in order to comply with the law. Any employer who contravenes the provisions of the Labour Ordinance pertaining to the employment of non-resident employee commits an offence under Section 130L of the Labour Ordinance (Sarawak Cap. 76) and if found guilty, is liable to a fine not exceeding RM10,000.00 or imprisonment not exceeding 6 months or both.

Should there be any doubts, please contact the Department or the nearest Division Labour office for further clarification.

Malaysia-Japan Economic Partnership Agreement ( “MJEPA” ) (UPDATED)

We have further clarified with the officer of the Ministry of International and Trade Industry ("MITI"), Kuala Lumpur on 12 July 2006 regarding the above matter.

Please note the following information posted in MITI's website for your reference:

1. Press Release outlining The Procedure to Obtain Preferential Tariff under the Malaysia-Japan Economic Partnership Agreement (MJEPA).

2. Japan tariff staging schedule

3. All the forms relating to MJEPA

MITI's website is http://www.miti.gov.my/ekpweb/application

Malaysia-Japan Economic Partnership Agreement ( “MJEPA” )

We had clarified with the officer of the Ministry of International and Trade Industry (“MITI”), Kuching on the above matter. Please note that the points below were verbally communicated as this matter has not been gazetted, hence the MITI was not able to give us a written confirmation on this matter at this point of time. This is an urgent matter which we felt that Members should be informed by now in view of the effective date which is on 13 July 2006. Hence, this circular was issued based on verbal communication with the officer from the MITI Kuching office.

Effective 13 July 2006, all timber products, except plywood, exported to Japan must be accompanied by a MJEPA form in addition to the usual supporting documents. This MJEPA form replaces the GSP Form A currently in use.

Process:

1. Complete and submit the following to MITI for approval. This will ONLY need to be carried out for the first application. Please note that MITI will take seven (7) working days to process these forms.

a. Borang Permohonan (Application Form) MJEPA (MJEPA 1 & 1A)
b. Cost Analysis of the Finished Product to be Exported under MJEPA form (MJEPA 2) and
c. Rekod Sijil Tempasal MJEPA yang Dikeluarkan (Record of Certificate Issued) (MJEPA 3)

2. Upon approval, complete and submit the MJEPA form and other supporting documents (e.g., Bill of Lading, K2 form etc) to MITI. The letter of approval from MITI must be attached for the first application.

3. However, in light of the approaching effective date, this MJEPA form (as mentioned in (2)) can be submitted together with documents stated in 1 (a) – 1 ( c ).

All the forms related to MJEPA can be downloaded from MITI’s website at http://www.miti.gov.my/ekpweb/application

The MJEPA forms can be purchased from the Federation of Manufacturers Malaysia (FMM) office in Kuching which located on Level 5, Wisma STA, Kuching and can be contacted at 082-332 784 (telephone). A pack of the MJEPA forms (comprising of 40 pieces) costs RM 55 for non-FMM members and RM 35 for FMM members. We were given to understand by the officer of FMM that they have yet to receive MJEPA forms from their office in Kuala Lumpur.

We will continue to keep you updated on the matter.

STIDC's Standardized Stamp

Reference is made to our discussion with STIDC and Royal Customs Department on 8 June 2006 regarding Customs Form No 2. This was in response to the requirements of the revised Japanese Green Purchasing Law which was effective 1 April 2006.

We have received a letter from STIDC dated 26 June 2006
(ref: STIDC.20.PPD(UPD).03.5) informing us of STIDC's standardized stamp for use on Customs Form No 2. This standardized stamp is effective 14 June 2006.

Please click here for a one-paged sample of STIDC's stamp for Kuching, Sarikei, Tanjung Manis, Sibu, Bintulu, Miri and Limbang.

Scholarship Grants

Canadian Air-Crane and Dunlop & Associates in association with STA is offering sponsorship for two (2) Scholarship Grants for the year 2006* for total sum of RM12,000.

* This award is a one-time award only but the sponsor(s) may consider offering similar awards in future years.

NEW STA OFFICE BEARERS & COMMITTEE CHAIRMEN FOR THE YEARS 2006 & 2007

Chairman
Datuk Leo Chai

Vice Chairman
Mr. Lau Swee Nguong

Honorary Secretary
Ms. Loretta Lau

Honorary Treasurer
Mr. Patrick Teng Kheng Huh

Committee Chairmen:
Forest Plantation - Datuk Abdul Hamed Haji Sepawi
Furniture & Other Wood Working - Mr. Yek Siew Liong
Hill Logging - Datuk Leo Chai
Log Marketing - Mr. Vincent Lau Lee Ming
Mouldings - Mr. Tiong Chiong Chung
Panel Products - Mr. Stephen Lau Lee Kiong
Sawmilling - Mr. Lau Swee Nguong
Swamp Logging - Mr. Philip Choo Kwong Hui
Timber Products Marketing - Mr. Wong Hee Sing

Nominations for Trainer Development Course in tree-felling and log extraction

The legislation, Section 54B Forests (Amendment) Ordinance, 2001, requiring all Logging Companies (as Employers) to hire only properly trained workmen to carry out any forestry activity (including harvesting operations) was passed by DUN at its sitting on 31 October 2001. Since then, STA has been working with the State Government through Forest Department Sarawak, to design and implement an integrated training system for the State. The Association has been verbally informed that the above Section of the Ordinance may be enforced for the above two forestry activities as from 1 January 2007.

Owing to the huge number of workers to be trained by the deadline of 1 January 2007, STA Training Sdn Bhd (STAT) has been focused on building up trainer capabilities within member companies of the Association in two phases; of which STA had successfully trained approximately 80 trainers from the industry in the two skills sets in phase 1.

In this connection, Companies are requested to nominate at least two suitable candidates with relevant work experience each for training in (i) tree-felling and (ii) log loading. These trainee trainers will eventually be the Company’s trainers upon successful completion of the training.

The candidates must be full time staff, preferably with the option of them been employed as dedicated trainers for the Company once they have completed the training. To help offset some of the costs incurred for training, the Association, through its wholly-owned Company, STA Training Sdn Bhd will be providing a financial contribution of RM1,500 per candidate per month (up to a maximum contribution of RM9,000 per candidate) for 50 trainees per skills set only. This financial contribution will only be disbursed upon successful completion of the training. However, suitability of candidates will be subjected to assessment by STAT trainers and STAT reserves the right to reject unsuitable candidates from the training.

The training will be done by STAT trainers on site in the camp. Depending on the skills and learning ability of the nominated candidates, a minimum of three rounds of training over a period of 12 months is expected. Training will culminate in a compulsory trainer course to be done in one of the regional towns/cities.

If you have further queries regarding this matter, please do not hesitate to contact Peter Peros, Melinda Chai or Peter Kho at the STA Secretariat at
Tel: 082-33 2222.