KENINGAU: Timber products export revenue clinched RM20.03 billion last year, contributing substantively to the national economic growth, Plantation Industries and Commodities Minister Tan Sri Bernard Dompok said.

However, concerted efforts must be pursued to ensure wood-based industries continued to enjoy robust growth in tandem with the National Timber Industry Policy (Natip) targets, he said.

Dompok said his ministry, through Natip, had set RM53 billion in timber export revenue target a year by 2020. To realise the target, the supply of quality and adequate raw materials was very important to ensure that the industry continues to grow, he said at a rubber-tapping event in a rubber estate owned by Bornion Timber Sdn Bhd funded under the Forest Estate Development Programme in Sook, near here, yesterday.

Dompok said Malaysia’s timber industry was facing diverse challenges, including depleting raw materials supply, skilled manpower and stiff competition from low production cost rubber-producing countries. Citing the dwindling timber production scenario in Sabah, Dompok said the reduction was very significant.

In 2009, timber production was 4.8 million cubic metres, but dwindled to 3.6 cubic metres last year, pressuring timber processing companies, particularly sawmills in Sabah. To balance the timber supply shortage, Dompok said several initiatives were implemented including introducing Forest Estate Development Programme.

Since the programme was launched in 2006, loans totalling RM608.34 million had been approved to 47 borrowers to develop 103,700 hectares (ha) of forest estates. Of the total amount approved, 40,000ha or 39 per cent was for planting in the peninsula, 37,000ha (36 per cent) in Sarawak and 26,000ha (25 per cent) in Sabah, he said.

Until last month, 60,000ha of the overall forest estates approved had been planted with the main rubber species preferred by the borrowers – 54 per cent – while the rest were planted with other species of forest estates.

Dompok said Bornion Timber is one of the major borrowers under the Forest Estate Development Programme and the loan was approved to develop 8,400ha in Sabah with forest estates.

“I was informed that of the hectarage approved, 7,500ha sanctioned for rubber forest estates have been fully planted and 2,136ha of forest rubber estates are now more than five years and are ready to be tapped,” he added. — Bernama