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Reduced Royalty Rate for Logs and Extension of Time for Payment of Royalty Bills

STA have just received a faxed letter ref. SFC/MD/CEO/STA/001 dated today together with the letter from the Ag. Director of Forests ref. DFR.93.13(VII)-21 dated 24 December 2008, informing us that the State Government has approved the following:

1. Reduce the royalty rate for logs under Royalty Class 1(i)A of the First Schedule of the Forests Ordinance [(Section 52(2)] and extend the time for payment of royalty bills by giving a grace period of 3 months for the year 2009 only.
2. Single (flat) rate of RM50.00 per m3 in round or RM100 per m3 converted for the year 2009.
3. Single (flat) rate of RM55.00 per m3 in round or RM110 per m3 converted for the year 2010.
4. Single (flat) rate of RM65.00 per m3 in round or RM130 per m3 converted for the year 2011 onwards.

The reduced royalty rate for logs and extension of time for payment of royalty bills will take effect from 1 January 2009.


Issues Relating to Retrenchment, VSS, Temporary Lay-off and Salary Reduction of Workers in Sarawak

In considering the current global economic crisis and the likelihood of retrenchment, the Government represented by the Ministry of Human Resources ("MoHR") has put in place several measures to mitigate the effects of possible retrenchment, hence to be in a better position to monitor the situation.

A set of guidelines entitled "Garis Panduan Pengurusan Pemberhentian Pekerja" has been set up to assist employers and employees in dealing with retrenchment. All parties are reminded to adhere to the provisions in the Code of Conduct for Industrial Harmony in carrying out any unavoidable retrenchment exercise.

The Director of Labour Sarawak has also reminded that it is a requirement under Labour (Termination And Lay-Off Benefits) (Sarawak) Rules 2008 ("the Rules") for the employers to report (through JTKSWK19) to the nearest Department before any of the following actions are to be taken:-

i) retrenchment;

ii) voluntary separation scheme (VSS);

iii) temporary lay-off; and

iv) salary reduction.

Members of the Association may refer to STA Circular STA/04/19/01 - E7 dated 27 December 2008 for further details.

New Address for Sarawak Forestry Corporation

With effect of 26 December 2008, Sarawak Forestry Corporation and its Kuching Regional Office will relocated to the following new premise.

Sarawak Forestry Corporation
Lot 218 KCLD
Jalan Tapang
Kota Sentosa
93250 Kuching

Tel: 082-610088
Fax: 082-610099

e-mail: info@sarawakforestry.com
website: www.sarawakforestry.com
The addresses for Regional Offices in Sibu, Bintulu and Miri remain unchanged.

Job Opportunity

STA Enterprise are now seeking application from suitable persons for the position of Administrative Assistant. Read More

Social Responsibility of Private Companies to Lighten the Burden of Society

STA received a letter ref JTKSWK/AG/(R)1 (2) from Department of Labour Sarawak stating that the Cabinet has taken note of the efforts made by private companies to fulfill their social responsibility to lighten the burden of society caused by the price hike of necessity. The following are a few examples:-

a) a plantation company had provided fruit tree seedlings free to their workers and local community. The proceeds from the sale of the fruits assist in meeting their daily expenses.

b) a company in Johor had provided 5 buses for free transportation in rural areas to assist to alleviate the daily expenses of the local community caused by rising petrol price and taxi fares. The Iskandar Regional Development authority had agreed to hire 2 drivers for each of these buses.

In this connection, the government is urging and encouraging more private companies to carry out their corporate social responsibility and make contribution to lighten the burden of the society in accordance with their ability to do so.

In addition, if any STA member companies are already making or intending to make contributions towards lightening the burden of society occasioned by the hike in the price of daily necessities, the Labour Department would like to be informed of such efforts so that the information can be passed on to the Ministry of Human Resources.

Revised DF Circular No 6/2008 : Revised Plastic Tags for Logs and Pole Size Timber - Grace Period until 30 June 2009 to finish existing stock of Plastic Tags printed

STA have received a letter from Forest Department Sarawak ref DF.681.76(VI)-19 dated 21 November 2008 written to Managing Director Sarawak Forestry Corporation and copied to STA on the above subject.

Please find attached a copy of the said letter which is self explanatory for your attention and action.

Exemption from Malaysian Laboratory Accreditation Scheme (Skim Akreditasi Makmal Malaysia) - Registration of Heat Treatment Facility

STA have received a letter from the Department of Agriculture Sarawak (HQ) ref PQS.69/Vol12(1) dated 11 November 2008 informing us that The Plant Protection and Quarantine Division, Department of Agriculture, Kuala Lumpur had agreed to give exemption to Syarikat Sime-Sirim Technology Sdn Bhd and Wehaya Sdn Bhd. which means that the Department of Agriculture (DoA), Sarawak would recognize the calibration service provided by them for registering heat treatment facility.
 
However, DoA Sarawak (HQ) has advised these two companies to register with the Malaysian Laboratory Accreditation Scheme (Skim Akreditasi Makmal Malaysia) as when the said Scheme is fully implemented, DoA Sarawak (HQ) will only recognise calibration done by companies registered with SAMM

(1) DF Circular No 5/2008: Revised First Schedule of the Forest Ordinance [Section 52(2)] on Rates of Royalty for Produce taken under licence
(2) DF Circular No 6/2008: Plastic Tags for Logs and Pole Size Timber

STA have just received from Forest Department Sarawak two DF Circulars, namely (1) DF Circular No 5/2008 on Revised First Schedule of the Forests Ordinance [Section 52(2)] on Rates of Royalty for Produce taken under licence and (2) DF Circular No 6/2008 dated 7 November 2008 and Plastic Tags for Logs and Pole Size Timber, informing us that the above DF Circulars shall take effect on 1 January 2009.

You are advised to bring the original copy of the Forest Timber Licence to the respective Regional Forest Office (Kuching/Sibu/Bintulu/Miri) either on 25 November 2008 or 26 November 2008 for cancellation of the old First Schedule and to get the revised First Schedule.

The DF Circular No 6/2008 shall replace DF Circular 5/95 and 4/97 whereby the Forest Department Sarawak will implement a revised Coupe and Block tag for logs, which incorporates Alpha-numeric Log Production Identity (LPI) number. This revision is aimed to improve the monitoring, tracking and controlling of both Log Production and Royalty Assessment.

These two DF Circulars together with the Appendices can be either requested from the Secretariat or downloaded here

Restriction Order on the Export of Wood Residues

STA received a letter from Sarawak Timber Industry Development Corporation (STIDC) on 27 October 2008 via STIDC Registration Circular No 3/2008 dated 1 August 2008 informing us that export of wood residues requires prior approval from STIDC.

This restriction order shall include wood of any species, shapes, sizes, wood slabs, off-cuts, log ends, center core, rejected veneers, plywood trimmings, sawdust, wood particles, wood wool and woodchips.

This restriction has been added into STIDC's Conditions & Restrictions under para 4.6 and shall be enforced with immediate effect

National Timber Industry Policy (NATIP)
Malaysian Timber Industry Board

A meeting was called by MTIB on the 28 October 2008, to discuss the draft NATIP and was attended by representatives from MTIB, PEKA, MWMJC, KPPK, MWIA, TEAM and STA.

The Policy addresses seven thrusts, namely (i) Industry Structure (ii) Raw Material (iii) Innovation and Technology (iv) Marketing and Promotion (v) Human Capital Development (vi) Funding and Incentives and (vii) Bumiputera Participation. This document can be either requested from the Secretariat or downloaded here (37.5 MB).

Representatives at the meeting reminded MTIB to verify figures for plywood, sawmill and mouldings to ensure they are correct.

During the discussion that followed, representatives concurred on two key issues viz the transparency of resource allocation and use of residues such as stump and small branches that are currently left in the forests.

STA has also raised the issue of the foreign general workers not to be curtailed as the tree plantation and plywood industries in Sarawak are dependent on them as we do not have enough workers to work in these sectors. This is important as the resource from our tree plantation programme will be an important resource for the industry in the future.

The industry is given two weeks to study this document, and if there are any feedbacks to get back to MTIB within the two week timeframe, to enable MTIB to prepare the document for Cabinet Meeting. In this connection, STA would be most grateful for any feedback on this matter, to be forwarded to us by 10 November 2008.

Logging Road Charges

STA Council had at its 68th Meeting held on 29th August 2008 resolved to increase the maintenance fee from RM0.20 per mile per Hoppus ton to RM0.30 per mile per Hoppus ton effective 1 October 2008 in view of the rising costs of spare parts, fuel and labour. The road toll remains at status quo at RM0.20 per mile per Hoppus ton.

Book "Constitutional Federalism in Malaysia"

Datuk JC Fong, former state Attoney-General Sarawak who has been retained by the Sarawak Government in an advisory capacity and represented the Government in court as State Legal Council has authored a book "Constitutional Federalism in Malaysia".

The book covers:-

- Malaysia: Historical Background
- The Malaysian Constitution - A Historial Perspective
- The Concept of Federation
- Division of Legislative and Other Powers Between the Federation and the States
- Financial Arrangements between Federal Government and the States
- Special Constitutional Safeguards for Sabah and Sarawak
- Interpretation of the Constitution
- Amendment of the Constitution
- Consultation and Mechanisms for Conflict Resolution
- Conclusion

The book costs RM280.00 each. For further enquiries, please contact:

Mr Gan Tze Yong
Sales Representative
Sweet & Maxwell Asia
h/p: 016-8883426
Fax: 082-341328
website: www.sweetandmaxwellasia.com.my

Administrative Order for Export of Wood Wastes/Mill Residues

The STA Secretariat had on 4 August 2008 received a Domestic Trade Circular No 1/2008 ref STIDC.20.PD.03.1(18) dated 28 July 2008 from Sarawak Timber Industry Development Corporation (STIDC) informing us that with effect from 1 August 2008, Exporters of Wood Wastes/Mill Residues from Sarawak must obtain written approval from STIDC prior to export. This is in compliance to para 4.6.1, The Sarawak Timber Industry (Registration) Regulation 2008 : Conditions and Restrictions (8th Amendment dated 1 August 2008).

STIDC will take necessary action against STA members who fail to comply with the above Administrative Order.

The STA Members Directory CD-ROM July 2008

We are pleased to announce that the STA Members Directory CD-ROM July 2008 Edition is now available at the STA Secretariat. The STA Members Directory is a searchable CD which enables users to search for information on timber products and STA members through a search engine interface. The CD also includes brief information on the Association, related government agencies, maps and other relevant information.

This STA Members Directory CD-ROM 2008 will be available for sale at the STA Secretariat. Should there be any enquiries, please contact the STA Secretariat at 082- 332 222 or email to sta@sta.org.my

MITI's circular ref:MITI:1D/DP/PE(S) dated 24 Jun 08

STA have received a letter from Sarawak Timber Industry Development Corporation (STIDC) forwarding a circular ref: MITI:1D/DP/PE(S) dated 24 June 2008 from the Ministry of International Trade and Industry Malaysia (MITI) concerning the "Penglibatan agensi-agensi kerajaan yang lain bersama Jabatan Kastam Diraja Malaysia dalam proses pemeriksaan dan pelepasan kargo" which will be enforced accordingly. Attached is the circular. Download Attachment

Measurement of Logs for Royalty Assessment

With effect from 1^st July 2008, all measurements of logs for purpose of the assessment of the royalty and other payments due under the Forests Ordinance Cap.126, SHALL be on the actual measurements of the logs as follows:

Ø      Length measurement shall be measured to two (2) decimal points.

Ø      Diameters, taken at the mid point, shall be measured to one (1) decimal point

There shall be no rounding off downward of the log measurements.

This directive is in accordance to Rule 22(3) of the Forest Rules and replaces the Director of Forests Circular No. 1/86 dated 17th February 1986.

Download the Round Log Volume Table (28.2MB) and Display Round Log Volume Programme (4.22MB) here.

Note: To setup the Display Round Log Volume Programme, unzip the folder and run the setup.exe file.

Malaysian Wood Preserving Association's Council for Year 2008/2009

Malaysian Wood Preserving Association (MWPA) held its 10th Annual General Meeting on 28 March 2008.  During the Meeting, the following were elected Council Members for the year 2008 /2009 for your information:-

President:                    
Mr Corsia K S Tan, Setiawood Industries Sdn Bhd

Deputy President:        
Mr Hong Lay Thong, Bioversity International

Vice Presidents:          
Mr Gary L K Choong, Dayatera Engineering Sdn Bhd
Mr Leong Pale Tong, Celcure Chemicals (M) Sdn Bhd
The late Mr Alfred L Y Tsang, Woodlandor Holdings Bhd

Honorary Secretary:     
Mr Ho Chan Hong, Celcure Chemicals (M) Sdn Bhd

Honorary Treasurer:     
Mr Mohd Hanafi Idris, Nufarm Technologies (M) Sdn Bhd

Council Members:        
Mr Chan Kian Sin, Celcure Chemicals (M) Sdn Bhd
Mr Lim Seng Choon, Forest Research Institute Malaysia
Mr Ng Wun Pin, Mitek Asia Sdn Bhd
Mr Young Kam Han, Arch Wood Protection (M) Sdn Bhd

Batch 2 of Postgraduate Diploma in Applied Science

The Postgraduate Diploma consists of six subjects offered by Lincoln University. The subjects will be taught using a mixture of Lincoln University lectures and local Sarawak forestry specialists. It will take two years to complete, with three subjects being offered each year.

Those interested may download the application form here and send back to:-

STA Training Sdn Bhd
Level 10, Wisma STA,
Jalan Datuk Abang Abdul Rahim,
93450 Kuching,
Sarawak, Malaysia.
Attn: Dr.Peter Kho/ Suzie Adee

For more information, please refer to the attached brochure or please contact the following:-

Assoc. Prof. Dr. Hugh Bigsby
Email: bigsbyh@lincoln.ac.nz
Tel: 64 3 325 2811
Fax: 64 3 325 3847

OR

Dr.Peter Kho (peter@sta.org.my) / Suzie Adee (suzie@sta.org.my)
Tel: (082) 332 222
Fax: (082) 487 888

Forests (Trained Workmen) Rules 2008

STA have received a letter ref: DF.93.20(II)-32 dated 7 April 2008 from the Forest Department informing us that the State Government has approved the Forests (Trained Workmen) Rules 2008. The rules come into force on 1 January 2008.

The gazette notification is now being prepared and a copy will be sent after it has been published.

Timber Grading Regulations, 2008.

STA have received a letter ref: STIDC .12.PI(KM)  .02.2 (16) dated 25 March 2008 from the Sarawak Timber Industry Development Corporation informing us that in exercise of the powers conferred by Section 24 of STIDC Ordinance, 1973 (Ord. No. 3 of 1973), the Majlis Mesyuarat Kerajaan Negeri has approved the Timber Grading Regulations, 2008.

For more information on this and other relevant topics, STIDC has organised a few regional briefings, a pamphlet of which is attached for your information and action, if applicable. Download attachment

Newly Elected STA Council Members (2008 and 2009)

The newly elected STA council members for years 2008 and 2009 are as follow:

Chairman:                   Datuk Wong Kie Yik

Vice Chairman:           Tan Sri Datuk Tiong Hiew King
                                    Datuk Ling Chiong Ho

Hon. Secretary:         Dato Henry Lau Lee Kong

Hon. Treasurer:          Mr. Philip Choo Kwong Hui

Committee Chairmen:

Log Marketing: Datuk Wong Kie Yik

Hill Logging: Datuk Ling Chiong Ho

Swamp Logging: Mr. Philip Choo Kwong Hui

Sawmilling: Ms. Annie Wong Haw Bing

Panel Products: Mr. Stephen Lau Lee Kiong

Moulding: Mr. Law Buong Hoo

Furniture & Other Woodworking: Mr. Yek Siew Liong

Timber Products Marketing: Mr. Wong Hee Sing
 
Forest Plantation: Datuk Abdul Hamed Haji Sepawi

Briefing to Timber Industries on Malaysia-European Commission Forest Law Enforcement Governnance and Trade (FLEGT) Voluntary Partnership Agremeent (VPA)

Sarawak Timber Indsutry Development Corporation (STIDC) and Ministry of Plantation Industries and Commodities (KPPK) are jointly organising a briefing on FLEGT VPA in order to provide information on the overall progress of the FLEGT-VPA negotiations, the Timber Legality Assurance System and findings of the market study. The details of briefing are as below:-

Date: Friday, 4 April 2008
Time: 8.00 am - 4.30 pm
Venue: Ballroom 1 & 2, Lobby Floor, Hotel Hilton Kuching

 

Inspection for timber products exported using container(s)

STA have received a letter from the Sarawak Timber Industry Development Corporation (STIDC) ref STIDC.20.PPD.08.10 (12) dated 29 February 2008. Please be informed that with effect from 3 March 2008, all timber products exported using container(s) must be Physically Inspected by STIDC officers first before the said container (s) can be sealed/closed. Without Physical Inspection being done, STIDC will not issue any Export Licence to the timber products concerned. This procedure is vitally important to fullfill the requirements of STIDC MS ISO 9001:2000 for export/import of logs and timber products which is implemented on 3 March 2008.