Contribution Of Forestry Sector In Sabah

The wood industry is a backbone of socio-economic development in the State of Sabah for the past year long and still maintaining its momentum as a primary economy resources in Sabah nowadays. The forest revenues in 2010 is worth RM297 million and its contribution to our government is approximately 7% out of total revenue comprehensively.

In the years past, wood industry contribution is more than 50% from the total government revenue. For the foreign exchange revenue in 2012, a worth RM3.1 billion is recorded while direct employment that established in this industry is about 37,998. Round log production from virgin forest in Sabah for the year 2012 is about 3.48 million cubic. The production of timber from forest plantation is 672,276.46 cubic meter in the same period.

It is the state policy to develop the wood-based upstream industry in line with the Sabah Industrial Action Plan. As a matter of fact, development for upstream industry in Sabah is steadily in slow pace wherever the core activity or log processing in sawmill and plywood sectors still currently dominated the wood industry.

Compared to 90s, the number of wood processing mills in Sabah that energetically active in the last few years are slowly decline due to depleting log resources. In the future, the number of active mills are expected to be steadily decline unless the alternative resources  are obtained by the manufacturer especially the imported timber to cater the demand of raw material.

The export of sawntimber, plywood and paper are still the major contributor to the wood-based products export in the year 2010 with export value 74% while log export from virgin forest only managed 6.7% from total wood-based products in the same year.

Wood processing activity in Sabah is expected facing slightly decline in the future due to the decline of log resources from virgin forest in Sabah. In other hand, raw material resources from imported timber and planted trees that substituting local raw material becoming more significantly. The reshuffling in wood industry sector capability will no longer can be possibly avoided in line with the limitation of existing resources. Consequently, the reducing and repopulating of employment probably occurs and the only competitive entrepreneurs are about to remain in the main line. 

Table: Export of Major Timber Product and Round Log In Sabah

(Click the image above to enlarge)

This article is edited and republished based on the article "Industri Perkayuan" that originally published by Sabah Department of Forestry with permission. Further and details of the article available at www.forest.sabah.gov.my. This article is only for information for the visitors and profitable tendency is none of our business.