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Sarawak Furniture Parks Call For Investors
Posted on : 29 Apr 2022
 

29 April 2022 (Friday)

Kuching - Sarawak is the leading producer and exporter of upstream timber products such as plywood, sawn-timber, fibreboard and door-skin. In 2021, the state exported RM3.6 billion worth of timber and timber products. More than 90% of the export items were upstream products.

Under the Timber Industry Transformation Plan, Sarawak will develop the wood-based downstream sector to produce and export value-added products particularly furniture in order to boost income for the state.

Datu Haji Hashim Bin Haji Bojet, General Manager of Sarawak Timber Industry Development Corporation (STIDC) said, concerted efforts were made by STIDC to accelerate the development of furniture industry in Sarawak. This was evident by the engagement session between STIDC and the Ministry of Plantation Industries and Commodities (MPIC), Malaysian Timber Council (MTC), furniture industry players and potential investors in the Peninsular Malaysia on 26 April 2022. The aim was to attract investors particularly the prominent furniture companies to become anchor companies in our furniture industry and furniture parks in Kuching and Tanjung Manis by leveraging on raw materials from planted forests and home-grown world-class furniture designers.

Describing the engagement session as fruitful, Datu Haji Hashim said, it was jointly organised by MPIC and MTC following the visit of the Honourable Datuk Willie Anak Mongin, Deputy Minister of Plantation Industries and Commodities to STIDC LPF 43 in Bintulu on 1 April 2022. The visit aimed to facilitate STIDC in meeting investors from Malaysian Furniture Association and other associations to promote and develop Sarawak furniture parks.

He added that this initiative augured well with Sarawak Post-COVID-19 Development Strategy as well as the STIDC Timber Industry Transformation and Reformation Plan to produce more value-added wood-based products to generate RM8 billion in export earnings by 2030.

According to him, STIDC is also focussing on other value-added products such as engineered-wood products as well as plywood-based and bamboo-based products.

“Sarawak aims to certify 4.5 million hectares of long-term licensed areas and 178,000 hectares of forest plantations under the Malaysian Timber Certification Council’s (MTCC) initiative. This is to ensure sustainable supply of raw materials to support the local furniture industry”, Datu Haji Hashim said.

In accelerating the development of furniture parks, he emphasised that the government is also looking into human capital and infrastructure development.

“In addition, the Malaysian Investment Development Authority (MIDA) is offering several incentives such as the Pioneer Status and Investment Tax Allowance for companies investing in the manufacturing sector as well as the Small and Medium Enterprises (SMEs) and Reinvestment Allowance”, he said.

“STIDC will continue to work closely with other agencies such as MPIC, MTC, MTCC, MIDA, SIRIM Berhad, Malaysian Timber Industry Board (MTIB), Forest Research Institute Malaysia (FRIM), Furniture Industry Technology Centre (FITEC), Forest Department Sarawak, Sarawak Timber Association (STA), Sarawak Furniture Industry Association (SFIA), Universiti Malaysia Sarawak (UNIMAS), Universiti Teknologi MARA (UiTM), Universiti Putra Malaysia (UPM), University of Technology Sarawak (UCTS) and Swinburne University of Technology to accelerate the development of downstream industry to produce and export value-added products”, Datu Haji Hashim said.

He added that STIDC would pursue engagements with foreign investors to promote investments in wood-based and bamboo-based products such as glulam, LVL, furniture and many more in realisation of the aspiration to generate RM8 billion in export earnings by 2030.