epermit For THE Highlight

Transcription

1 Highlight epermit For THE The Right Honourable Pehin Sri Haji Abdul Taib Mahmud (centre) witnessing the signing of agreement between STIDC and Dagang Net Sendirian Berhad. 15th August 2007 marked the signing of agreement for the development of epermit system between STIDC and the service provider, Dagang Net Technologies Sendirian Berhad. The signing ceremony which took place in Tanjung Manis New Township was witnessed by the Chief Minister of Sarawak, The Right Honourable Pehin Sri Haji Abdul Taib Mahmud. epermit offers tremendous benefits like enhancing the accuracy of data, reducing turnaround time and expediting permit processing. Besides being STIDC was represented by its General Manager, Datu Haji Len Talif Salleh while Dagang Net Sendirian Berhad by its Chairman, Datuk Dr. Syed Muhammad Syed Abdul Kadir. This epermit system was inaugurated by the Federal Government through the Ministry of International Trade and Industry in It is a web-based value-added service which enables importers and exporters of timber and timber products as well as their authorised agents in Sarawak to apply for permits from STIDC and obtain approval online. Datu Haji Len highlighted the importance of epermit. Datuk Dr. Syed Muhammad delivering his speech. The approved permits will be transmitted to the Customs Department s information system (Sistem Maklumat Kastam) electronically for validation. Demonstration on the use of epermit to the VVIPs. 5

2 Highlight TIMBER INDUSTRY Datuk Dr. Syed Muhammad (2nd left) and Datu Haji Len (2nd right) exchanging the agreement documents. user-friendly, it ensures convenience for authorised officers to approve permit applications online. In his statement Datuk Dr. Syed said, this system helps businesses to be more efficient, productive and profitable by leveraging more effective technologies and tools. He was optimistic that it could reduce processing time and expedite permit approval in view that STIDC is connected online with Customs Department, importers, exporters as well as forwarding agents. The implementation of this system is a manifestation of STIDC pro-activeness in realising the state government s aspiration to create an electronic government by It also marks the government s continuous effort to enhance the competitiveness of the timber industry in the global market. Datu Haji Len stated that STIDC processes an average of 30,000 permit applications every year using this system adding that the implementation of this system is timely in view of the upward trend in the number of permit applications in the state. He also highlighted that the system will benefit the timber traders in getting their permit applications approved promptly. STIDC is the first government agency in Sarawak to adopt this system for import and export of timber and timber products. This system helps to shorten the processing time for each permit application to only 30 minutes compared to between two to seven days using manual system. The Chief Minister visiting STIDC exhibition booth. SARAWAK TIMBER INDUSTRY DEVELOPMENT CORPORATION (STIDC) 6

3 Advertisement PUSAKA INDUSTRY UPDATE Organised by Sarawak Timber Industry Development Corporation (STIDC) STIDC is organising the Industry Update Programme as scheduled below : The target participants are CEOs / Managers / Supervisors from the wood-based companies. No. Venue Date Time 1. Dewan Seminar PUSAKA, Kuching 28 November am 5.00 pm 2. Hotel Purnama, Limbang 3 December am 5.00 pm 3. Hotel Dynasty, Miri 4 December am 5.00 pm 4. Hotel Li Hua, Bintulu 5 December am 5.00 pm 5. Hotel Tanah Mas, Sibu 6 December am 5.00 pm INDUSTRY UPDATE PROGRAMME am Registration of Participants am Session 1 : Amendment to The Sarawak Timber Industry Development Corporation Ordinance, 1973 (Amended 2006) am Session 2 : Procedures of Applying for Mill Registration under The Sarawak Timber Industry (Registration) Regulations, am pm Session 3 : Timber Grading Regulations, pm Lunch pm Session 4 : epermit for Timber Industry pm Session 5 : Procedures of Applying for Manpower in Woodbased Industry pm Session 6 : Procedures for Importation of Logs and Logs Reservation Quota 5.00 pm Refreshment REGISTRATION FORM Name of Participants : 1) 2) Company s Name : Company s Address : Tel. No. : Mobile No. : The form has to be faxed to Registration and Licensing Division at Closing date is on 23rd November * Admission is free. For enquiries, please contact ext. 331 / 335 / 336 / 337 / 339 7

4 Market Report MARKET PERFORMANCE (JANUARY AUGUST 2007) Sarawak export values of timber and timber products in January August 2007 slump compared to the same period of last year. Despite the promising momentum in first half of the year, the descent earnings in July and August for most of timber and timber products have affected the overall market performance. The export earnings decreased by % in the corresponding period due to lower volume being exported and unstable FOB prices. This represented the decreased to RM 5.05 billion between January to August this year, from RM 5.70 billion recorded during the same period in The report from ITTO stated that prices of Malaysian timber products were impacted by weaknesses linked to the instability in the world s financial markets. This shaky financial markets impacted prices of sawn timber, plywood and panel products. Plywood remained the major contributor of 55 RM 2.76 billion of the total export value, with logs and sawn timber at second and third respectively. In continuing trend from late July, most of timber and timber products further weakened. Prices of woodbased commodity in India market declined broadly over the end of July and early August. Imports from China for plywood and sawn timber also continued to decline at higher rate. Table 1. Logs Prices for Sarawak logs had gone down, especially for small and super small diameters, due to increasing supply while there was lack of interest from the buyers. Japan s demand continued to weaken during August. Local plywood mills have reduced log purchases, since there has been weakening demand from Japanese buyers. Meanwhile, export to China was comparatively lower than before despite persistent weather problems which hindered their logging activities. The total export volume increased by 3.77 % to 2.43 million m 3 compare to 2.35 million m 3 in 2006 supported by steady demands from India. However, lower price subsequently reduced earnings from export of logs by % to RM 1.15 billion from RM 1.53 billion in last year. India remains the largest buyer of Sarawak s logs which comprises million m 3 with the value of RM 510 million of the total export. This was followed by Japan, Taiwan and China respectively. Meanwhile, demands from Vietnam had been declined compare to the same period in Table 2. Plywood Export volume of plywood decreased further by % to 1.81 million m 3 from 2.30 million m 3 in the same period of 2006, with 54 % of this volume bound to Japan. However, export plywood to Japan has been dropping severely. This was a result of the recent holiday period in Japan, where buyers were looking to meet immediate needs only. Taiwan imposed requirements on formaldehyde emission on all plywood and LVL products, which would be tested and verified for acceptable levels beginning July Other major markets are Korea (11 %), Middle East (10.6%) and Taiwan (6.7 %). Middle East has surpassed Taiwan as a third major market due to continuously robust development in construction sector. Export to China and USA dropped drastically by 62 % and 55 % respectively. China has focused on local plywood production while softening of the real estate market hampered demand for plywood in USA. As a result of smaller export volume, the export earnings go down by % from RM 3.11 billion to RM 2.76 billion in the corresponding period due to volatillity in price. Table 4. Sawntimber Prices of sawn timber were mixed even with steady demands from the Middle East and Thailand. Additionally, the financial institutions had been gradually tightening their credit, leaving timber exporters in need of working capitals for their sawn timber operations. Overall demands for sawn timber remain moderate. This was represented in slender declined of the exported volumes. The export volumes only decreased by 1.26 % to 667,400 m 3 compare to 675,900 m 3 for the corresponding period in Export earnings also reduced by 6.40 % to RM 615 million from RM 657 million last year. Most of major market showed minor increased in volumes except China and Philippines. Thailand remained as major importer of about ,871 m 3. The Middle East has become second main destination with ,241 m 3 worth around RM 114 million. Other major consuming countries such as Taiwan, China, Korea and Japan are relatively stable in terms of market shares besides lower price offered. Timber traders were still positive with the future demands despite the current market prices had undergone some corrections due to existing stock since past few months. Table 3. Other Timber Products Export for veneer, particleboard and woodchips were favourable with firmer prices. Export volume of veneer increased by 4.68 % to 170,400 m 3 from 162,800 m 3 while the value grow by % to RM 187 million from RM 165 million in contrast to A manufacturer has to slow down veneer supply to domestic plywood manufacturing plants until market become more stable. Taiwan and Korea lead the market with import of 32 % and 31 % of veneer from the state followed by China, Japan and Philippines. Export of woodchips to Japan increased from 148,300 m 3 (RM 19.5 million) to 198,200 m 3 (RM 29.6 million) which was an increased of 34 % and 52 % in terms of volume and value in the related period. Demand for particleboard had increased by %. Total export volume was 83,700 m 3 worth RM 38 million. Indonesia is a major importer of particleboard with 53 % of the market shares with South Korea and Vietnam the only other major destination. Similarly, local exporters continue to receive favourable orders for MDF especially from Japan and other consuming countries. Export volume has improved by 3.36 % to 122,200 m 3. Nonetheless, lower prices had impacted the earnings which were decreased by % to RM 117 million from RM 144 million as compared to the same period in Market for mouldings and dowels depreciated due to related Ramin issues with the CITES authority. Table 5 & Table 6. Future Outlook Instability in global market continued to negatively impact Malaysian prices of timber and timber products. Prices of plywood and panel products might be adversely affected in the near future should Japanese financial markets be impacted further by global credit related issues, adding to current problems with excess supply. Meanwhile, prices of Indonesian timber products remained steady as the Indonesian rupiah slipped against the U.S dollar. Japan and Indonesia will sign a bilateral Free Trade Agreement (FTA) and will immediately remove tariffs on Indonesian forest products. These will be major challenge for the Malaysian timber industries. However, The Central Bank anticipated greater economic momentum in the second half of this year. Hence, timber industry players still hopeful that woodbased sector will move forward accordingly. It is hoped that, The National Timber Industry Policy (NATIP), once completed would give a clear direction to the development of the Malaysian timber industry to sustain its competitiveness in the global market. SARAWAK TIMBER INDUSTRY DEVELOPMENT CORPORATION (STIDC) 8

5 Trade Statistics, Sarawak TRADE STATISTICS SARAWAK TABLE 1. EXPORT SUMMARY OF TIMBER AND TIMBER PRODUCTS FROM SARAWAK PRODUCTS (M 3 ) 2007 January-August FOB (RM 000) % (M 3 ) 2006 January-August FOB (RM 000) % % Change 2007/2006 LOGS 2,433,985 1,145, ,345,500 1,352, (15.28) SAWNTIMBER 667, , , , (1.26) (6.40) PLYWOOD 1,814,496 2,759, ,301,500 3,112, (21.16) (11.36) VENEER 170, , , , DOWELS 3,725 8, ,900 9, (4.49) (5.66) MOULDINGS 16,778 35, ,700 42, (10.28) (15.24) PARTICLEBOARD 83,701 38, ,500 30, MDF 122, , , , (18.72) LAM. BOARD/FLOORING 28,124 46, ,500 55, (17.25) WOODCHIPS (TONNE) 198,200 29, ,300 19, OTHER TIMBER PRODUCTS 66, , (40.57) TOTAL 5,048, ,700, (11.44) EXPORT VALUE OF TIMBER & TIMBER PRODUCTS FROM SARAWAK 9