Contents. Part 1. Corporate Vision 1. Corporate Mission 1. Corporate Functions 1. Board of Management 2. Management Team 3. Corporate Structure 5

Transcription

1

2 Contents Part 1 Corporate Vision 1 Corporate Mission 1 Corporate Functions 1 Board of Management 2 Management Team 3 Corporate Structure 5 Message From The Chairman 7 Main Corporate Activities 9 Resource Development Division 10 Industrial Planning Division 11 Project Development Division 12 Trade Development Division 13 Domestic Trade Division 15 Registration & Licensing Division 16 Preventive & Enforcement Division 17 Northern & Central Regions 18 Corporate Investment 19 Activities in Part II Financial Statements 1

3 Part 1 Corporate Vision STIDC as the leader and catalyst of the timber industry Corporate Mission STIDC plays its roles in planning, co-ordinating and developing the timber industry in Sarawak towards optimum utilization of forest resources by encouraging downstream processing and product diversification. In line with these objectives and the National Vision 2020, STIDC is committed to the development of disciplined, skilled and capable human resources. Corporate Functions To control and co-ordinate the manufacturing standards as well as trade practices of the timber industry; To recommend to the Government on the methods, measures and policies to be adopted to enhance the timber industry, and where approved by the Governor-in-Council, to implement and assist in the implementation of the same; To encourage effective utilization of timber with emphasis on product diversification and quality control; To promote, stimulate and facilitate the development of timber industry in Sarawak, and in connection with the discharge of its functions to assist any person engaged in the production and marketing of timber; To provide technical advisory services in order to enhance the existing timber industry and to establish new industry; and To provide training in various aspects of logging activities in relation to timber processing, sawmilling, sales and marketing of timber and timber products. 1

4 The Honourable Datuk Amar Haji Awang Tengah Ali Hassan (Chairman) Minister of Planning and Resource Management II and Minister of Public Utilities Tan Sri Datuk Amar (Dr.) Haji Abdul Aziz bin Dato Haji Husain Chairman of Pusat Pembangunan Kemahiran Sarawak Dato Sri Ahmad Tarmizi bin Haji Sulaiman State Financial Secretary Datu Wan Alwi bin Dato Sri Wan Hashim Permanent Secretary of Ministry of Planning and Resource Management The Honourable Tuan Haji Julaihi Haji Narawi Chairman of Lingkaran Jaya Sendirian Berhad Datuk Dr Yusuf Hadi Lecturer Faculty of Resource Science and Technology, UNIMAS 2

5 MANAgEMENT TEAM Datu Haji Len Talif Salleh B.Sc (Forestry), The Australian National University, Australia General Manager Haji Hashim Haji Bojet Master in Corporate Business Administration, CMM/Ohio University, USA BBA (Hons), University Kebangsaan Malaysia Deputy General Manager Mdm. Dayang Nena Abang Bruce Master (Business Administration), Heriot-Watt University, UK B. Econ. (Hons), University of Malaya Diploma in Marketing, Chartered Institute of Marketing, UK Senior Assistant General Manager (Trade Development) Ms. Haluyah Awi Bachelor of Law (LL.B) (Hons), Universiti Institut Teknologi MARA Diploma in Laws, Universiti Institut Teknologi MARA Senior Assistant General Manager (Administration) Mdm. Catherine Sng Bee Seio B.Com. (Acct), University of Otago, Dunedin, New Zealand Chartered Accountant - Institute of Chartered Accountants of New Zealand (ICANZ) Chartered Accountant - Malaysian Institute of Accountants (MIA) Assistant General Manager (Finance & Investment) 3

6 Mr. Edmund Daging Mangku B.Sc. (Forestry), Universiti Pertanian Malaysia Assistant General Manager (Resource Development) Mr. Tagat Jimbat B.Sc. (Forestry), Universiti Pertanian Malaysia Assistant General Manager (Domestic Trade) Mr. Mohd Hinri Abdullah Diploma Pengurusan Pemasaran & Pengedaran Fizikal, Institut Pengajian Sains Pengurusan Delft, the Netherlands Diploma in Public Administration, Universiti Institut Teknologi MARA Assistant General Manager (Preventive & Enforcement) Mr. Paul Lau Ngie Hung B.Sc. (Forestry), Universiti Pertanian Malaysia Acting Regional Manager (Central Region) Mr. Jerry Mawan Lading B.Sc. (Forestry), Universiti Pertanian Malaysia Acting Regional Manager (Northern Region) 4

7 Corporate Structure Ministry of Planning and Resource Management Board of Management general Manager Corporate Affairs Section Deputy general Manager Registration & Licensing Division Registration & Licensing Industrial Planning Division Industrial Planning Quality Control Industrial Standard Project Development Division Technical Services Entrepreneurial Development Projects Resource Development Division Planted Forest Resources Natural Forest Resources Industrial Training Central Region Offices Sibu Tanjung Manis Sarikei (Liaison Offices) Mukah (Liaison Office) 5

8 Internal Audit Section Legal and Secretarial Section Trade Development Division Trade Development Publications Domestic Trade Division Domestic Trade Preventive & Enforcement Division Preventive & Enforcement Administration Division Human Resource Management Human Resource Development Information & Communication Technology General Services Building Maintenance Security Finance & Investment Division Finance Investment Northern Region Offices Bintulu Miri Limbang (Liaison Office) 6

9 MESSAgE FROM THE CHAIRMAN OF STIDC BOARD OF MANAgEMENT Assalammualaikum Warahmaatullahi Wabarakatuh dan salam 1Malaysia. On behalf of STIDC Board of Management, it is my great pleasure to present this Annual Report and Financial Statement for the year ended 31st. December The global economic downturn in 2009 had posed challenges to business sectors including the timber industry. In Sarawak, the value of timber and timber products exported in 2009 dropped by 16% to RM6.7 billion compared with RM8 billion in Similarly, in 2009 the timber sector also experienced a decline in export volume for sawn timber (26%), plywood (24%), veneer (35%), dowels (28%), mouldings (9%), particleboard (57%), block-board (40%) and laminatedboard (45%). However, growth in terms of value was recorded for logs (6%), medium density fiberboard (10%), woodchips (0.4%) and other timber products (44%). Meanwhile, the values of major timber products such as plywood, logs and sawn-timber were RM3.4 billion, RM1.8 billion and RM 0.7 billion respectively. These represented 50%, 27% and 11% of the total revenue earned from the export of timber and timber products in Taking advantage of the vast potential in the international markets, STIDC participated in both the Malaysian International Furniture Fair and Export Furniture Exhibition in Kuala Lumpur on 3rd-8th March This was followed by a visit to the 23rd China International Furniture Fair in Guangzhou on 20th -25th March Besides the aim to keep abreast with the current trends in furniture designing and to explore market opportunities, the involvement in these events also manifested its efforts in helping the industry particularly in time of difficulty. Committed to addressing the pertinent global issues and to ensuring good governance in Sarawak s timber industry, STIDC maintained close rapport with its international counterparts. A familiarization visit to Sarawak was coordinated for the European Union timber trade representatives from 9th-12th July The visit among others aimed at giving first hand information on Sarawak s forestry and timber sectors. Meanwhile, the Corporation continued to diversify its role in tandem with the State Government s aspiration to develop Tanjung Manis Halal Hub by providing the infrastructure. Albeit the challenges, STIDC continued to play its role as the leader and catalyst of Sarawak s timber industry and involved actively in major events in meeting the needs of the industry. 7

10 The 77,000 hectares halal hub is poised to lure at least RM9 billion worth of investments and create not less than 10,000 employment opportunities besides other spin-off benefits like service related businesses. Hence, the development of this hub will surely bring significant positive impacts and improve the socio-economic well-being of the people in this area and Sarawak as a whole. This augurs well with the increasing demand for halal products from both Muslim and non-muslim markets globally. The availability of communication and transport network in this township as well as the development of Tanjung Manis Halal Park is in line with the government s objective to make Tanjung Manis the country s halal hub of choice. Besides promoting the use of green technology and renewable energy, this Halal Park emphasizes on bio-technology and continuous Research and Development particularly in aquaculture. This will pave the way for more local and foreign direct investments. This halal hub will support among others, the aquaculture, poultry and egg production, livestock and meat production, fruit gardens, animal feed mills, eel farming industry as well as chlorella plant and tilapia hatchery. Undoubtedly, this will help to boost the development of the neighbouring areas. Through these efforts the Corporation hoped to forge ahead in leading and catalyzing the industry taking advantage of a more optimistic outlook following the improvement of the global economy. Last but not least, I wish to express my sincere appreciation to all the Board of Management, relevant government departments and agencies, industry players as well as the management and staff of STIDC for their continuous commitment and dedication in ensuring the success of this report. THE HONOURABLE DATUK AMAR HAJI AWANg TENgAH ALI HASSAN Minister of Planning and Resource Management II Minister of Public Utilities Chairman of STIDC Board of Management 8

11 MAIN CORPORATE ACTIVITIES 9

12 RESOURCE DEVELOPMENT Resource Development Division was entrusted to facilitate the growth of the timber industry by ensuring sufficient supply of raw materials and availability of human capital. Towards that end, various activities were carried out in 2009 such as monitoring the implementation of log quota policy and conducting skill-based industrial trainings. DIVISION Additionally, this division had also carried out other activities such as the implementation of Ramin Export Quota, processing of log import application, issuing of sustainable forest management and legality statement certificate, updating the logging progress of STIDC timber licensed area, monitoring the planting progress of STIDC license for planted forest and providing technical input to technical committee for recruitment of foreign workers. Throughout 2009, about 4.15 million cubic metres or 62% of the log production were allocated for local processing compared with 7.12 million cubic metres or 82% in the previous year. The decrease was attributed to the global economic recession. At the same time, STIDC was tasked to distribute and monitor the export of Ramin timber products in which Sarawak was allocated with a quota of 3, 178 cubic metres compared with 6,110 cubic metres (including 2007 stocks) in % of the allocated quota was exported in Ramin export quota was imposed in accordance with CITES in order to protect this species from possible extinction. Another important task undertaken by Resource Development Division was capacity building to cater for the needs of human capital in the timber industry. 61 youth were trained in 2009 to acquire necessary skill in furniture making, wood carving and timber grading. Efforts were also made to organize customized training for the industry. In addition, this Division continued to provide technical input to the technical committee responsible for the employment and recruitment of foreign workers. Its involvement in this committee is crucial in ensuring continuous supply of workers for the timber industry. To complement the supply of local raw materials importation of logs is permitted with the approval of the Ministry of Planning and Resource Management of Sarawak. 10

13 Sarawak exported 2.66 million cubic metres of plywood or 66.67% out of 3.9 million cubic metres of the national export volume in INDUSTRIAL P L A N N I N g D I V I S I O N The Industrial Planning Division continued to play its important roles in planning, monitoring, reviewing and reporting the overall development of wood-based industry in Sarawak. These roles were realised by monitoring the progress of strategic macro plans for the industry such as the Ninth Malaysia Plan, Industrial Master Plan III, National Timber Industry Policy and Sarawak Corridor of Renewable Energy. Other key activities included the implementation of Timber Grading Regulations, development of technical standards for timber products, management of timber production data and evaluation of timber based mill layout plans. The timber industry remained as the key manufacturing sector in Sarawak. By the end of 2009, there were approximately 841 wood-based mills in Sarawak. The total annual installed and utilized capacities of the primary processing industry were 11.2 million cubic metres and 8.3 million cubic metres respectively. Total production of primary products like plywood, sawn timber and veneer were million cubic metres, million cubic metres and 674,383 cubic metres respectively. The wood-based industry in Sarawak continued to optimize the utilization of wood resources by processing mill residues to produce value-added products. The annual output of products such as fiberboard, particle board and woodchips were 237,923 cubic metres, 133,413 cubic metres, and 203,326 metric tones respectively. In 2009, STIDC had successfully inspected 158 mills to ensure that machinery installed is in accordance with the approved layout plan used for mill registration. STIDC being the Grading Authority for Sarawak is responsible to supervise timber grading activities carried out by 376 competent timber graders. A total of 844,061 cubic metres of sawn timber exported was checked and graded by STIDC in The application for grading activities and certificates were done on-line by the industry. Greater awareness among the consumers on the importance of safety and health on particular products required domestic producers to comply with standards imposed by the consumer countries such as the control of formaldehyde emissions from wood panel products. STIDC also involved actively in committees to develop and monitor compliance directives for technical standards at both national and international levels to ensure that its implementation would not become barriers to local producers penetrating the global markets. During the Timber Industry Update on the 20th July 2009, the industry was briefed on the revision to California Air Resources Board (CARB) requirements for formaldehyde emission control for wood composite products. The briefing aimed to inform the participants on the revised requirements on the allowable formaldehyde emission level for wood composite products exported to California, USA effective 1st January At the same time the industry was also briefed on the impact of global economic crisis on the timber industry in Sarawak. 11

14 PROJECT DEVELOPMENT DIVISION Project Development Division continued to play its role in managing project developments undertaken by STIDC. Its involvement in project developments particularly in Tanjung Manis Halal Hub reflected the diversification of STIDC role into other fields. With emphasis on green technology, this project aimed to tap new investment opportunities as well as to promote Tanjung Manis under Sarawak Corridor of Renewable Energy (SCORE). It was also in consonance with the government s aspiration to make Tanjung Manis the Halal Hub of choice in Malaysia. Tanjung Manis which was identified as one of the five new growth nodes under SCORE offers new investment opportunities with the launching of the country s largest halal hub there. Witnessed by the former Prime Minister, Tun Datuk Patinggi Abdullah Haji Ahmad Badawi, the Memorandum of Understanding for the lease and permit to enter the project site of the halal hub was signed on 18th February With over 77,000 hectares earmarked for this project, Tanjung Manis Halal Hub is poised to become one of the most scientifically and environmentally advanced halal hubs in the world with the incorporation of state-of-the-art technologies, renewable energies and sustainable practices. Tanjung Manis Halal Hub masterplan Project Development Division also played its role in co-ordinating maintenance work in Tanjung Manis New Township including the Tanjung Manis Airport besides ensuring the success of STIDC Vendor Development Programme. In 2009, there were 53 vendors registered under this programme in which STIDC helped by providing advisory services particularly on 5S practices as well as on productivity and quality concepts in their workplaces. STIDC also helped in co-coordinating other activities such as exposure programmers, exhibitions, expositions as well as seminars in realizing its objective to create resilient Bumiputera furniture entrepreneurs. Prime Minister (3rd. left) together with The Right Honourable Pehin Sri Haji Abdul Taib Mahmud, Chief Minister of Sarawak (4th. left) and The Honourable Datuk Amar Haji Awang Tengah Ali Hassan, Second Minister of Planning and Resource Management cum Minister of Public Utilities and STIDC Chairman (2nd. left) launching the Tanjung Manis Halal Hub while The Honourable Datuk Patinggi Tan Sri Alfred Jabu anak Numpang, Deputy Chief Minister (6th. left), Datu Haji Len (left) and other VIPs look on. STIDC General Manager, Datu Haji Len Talif Salleh (centre) briefing the Prime Minister, The Right Honourable Datuk Patinggi Abdullah Haji Ahmad Badawi (2nd. left) on Tanjung Manis Halal Hub Masterplan. The Right Honourable Chief Minister of Sarawak, Pehin Sri Haji Abdul Taib Mahmud (6th. left) signing the plaque to launch the Tanjung Manis Halal Park - Parcel 1 12

15 STIDC Official attending to the visitors at EFE. EU Timber Trade Representatives familiarization visit to Sarawak TRADE DEVELOPMENT DIVISION The timber sector experienced its most challenging period in 2009 as the global economic depression underpinned the overall export of timber and timber products from the State. STIDC, as the lead agency in the development of the timber industry in Sarawak had played proactive role at enhancing the competitiveness of the industry through its annual programs such as promotion and timber selling mission, timber industry updates, public relations and involvement in national, regional and international forums. Through the timber industry updates STIDC continued to share and disseminate the latest information on pertinent issues affecting the industry. Among the topics and issues discussed were Impact of Global Economic Downturn on the Timber Industry, US Lacey Act and EU Legislation on Trade and Legal Timber. Committed to assisting the local industry players in promoting their products STIDC had also participated in the Malaysian International Furniture Fairs (MIFF) and Export Furniture Exhibition (EFE) in Kuala Lumpur. These annual exhibitions had assisted the local manufacturers and Bumiputera vendors in promoting their furniture and enhancing networking as well as gaining greater exposure in the international market. Besides, STIDC had also organized a visit to the 23rd. China International Furniture Fairs (CIFF) in Guangzhou, China to update and expose the participants on the latest furniture designing and manufacturing technology besides establishing business networking with their counterparts in China. In addition, STIDC also participated in the International Wood Product Association (IWPA) Annual Convention in California to keep abreast with the latest issues affecting timber trade and industry. The convention focused on issues such as California Air Resource Board (CARB) regulations revision and enforcement, Lacey Act compliance and on-line Importer Security Filing requirements. 13

16 Negotiations on Forest Law Enforcement, Governance and Trade (FLEGT) Voluntary Partnership Agreement (VPA) were continued. These were in support of the international efforts to combat illegal logging and its associated trade. STIDC participation and involvement in these negotiations were to safeguard the interest of the State and the industry in general. Sarawak is committed to produce and trade in legally harvested timber and does not condone illegal logging and its associated trade which could jeopardize the development of the industry and government s efforts in promoting legally produced timber. To further enhance its commitment, STIDC had participated in national and international forums to ensure that the international community is well informed on government s efforts and initiatives in mitigating issues and misconception related to the forestry sector. State. Amongst the foreign visitors received were from Guangdong Academy of Forestry, China. As an annual programme, STIDC in collaboration with the Malaysian Timber Council (MTC) had also organized familiarization visit for the European trade representatives to Sarawak which saw ten representatives from various trade associations and media groups in Europe. This international public relations campaign programme was an important platform to portray our commitments and transparency in managing our forests as well as in providing the delegates with an insight on trade and forestry sector in the State. STIDC will ensure continuous efforts to promote and develop the timber trade besides enhancing competitiveness of the local industry through concerted efforts and involvement of all related stakeholders. STIDC also received local and foreign visitors who were interested in acquiring first hand information on forestry and timber sectors in the The 23rd China International Furniture Fairs (CIFF) in Guangzhou, China. 14

17 Processing of License for export and import of timber and timber products. DOMESTIC TRADE DIVISION Domestic Trade Division had achieved its objectives for 2009 in line with the Key Performance Indicators and ISO 9001: 2008 Quality Policy in delivering the services of issuing Export and Import licenses for timber and timber products in Sarawak. In 2009, the number of Export Licenses issued dropped by 7% to 25,000 compared with 27,000 issued in The number of Import Licenses issued also dropped by 31% to 48 in 2009 compared with 70 issued in Meanwhile, the export volume decreased by 7.5% to 7.8 million cubic metres in 2009 compared with 8.4 million cubic metres in This was due to the impact of the global economic slowdown which had adversely affected the market demands. In enhancing efficiency and transparency, procedures for issuance of Export and Import licenses were certified under ISO 9001:2008 in January The procedures were adopted successfully in the headquarters as well as in divisional offices. Subsequently, 96% of the customers commended the procedures which were implemented through e-permit system. Mr. Tagat Jimbat, Assistant General Manager of Domestic Trade Division ( middle) together with Sabah State Officials in conjunction with their visit to STIDC on 26th March 2009 to observe the e-permit System. 15

18 REgISTRATION &LICENSINg D I V I S I O N Throughout 2009, Registration and Licensing Division continued to play its active role in registering the timber companies in Sarawak albeit the gloomy global economy. The global economic uncertainties had resulted in the decline of the timber companies registration applications by 5% to 1,877 in 2009 compared with 1,972 applications received in Revenue earned from companies registration had also dropped by 27% in Meanwhile, the approved manufacturing license applications decreased to 23 compared with 32 in the previous year. Similarly, the number of new investments approved in 2009 had declined by 17% to 10 investments from 12 investments in The value of domestic investment in the timber sector had also slipped to RM18.3 million in 2009 compared with RM 70.4 million in Subsequently, employment opportunities also dropped by 34% as a result of weaker investments. However, the value of foreign investments grew significantly to RM7.4 million in 2009 compared with RM1.9 million in Company registration campaign in progress. As a whole, the global economic downturn in 2009 had adversely affected the registration and licensing activities. These were reflected by the marked decline in terms of companies registrations as well as investments in the timber fraternity. Mill inspection by Registration and Licensing staff 16

19 PREVENTIVE & ENFORCEMENT DIVISION The implementation and enforcement of policy, regulations and procedures which regulate the activities of Sarawak timber industry under the STIDC jurisdictions were made through the provisions under The Sarawak Timber Industry Development Corporation Ordinance, 1973 and The Sarawak Timber Industry (Registration) regulations, 2008 and The Timber Grading regulations, The authority provided under the Ordinance and regulations enable STIDC to undertake preventive and enforcement activities to ensure that activities relating to the timber industry such as manufacturing, import and export, as well as quality control are in accordance with the given regulations and procedures which could further spur rapid development of the timber industry in Sarawak. STIDC continued to put preventive and enforcement activities among its top priories to stem illegal entry of timber from Indonesia. With the setting up of its offices at the five designated entry points namely Sematan, Biawak, Tebedu, Batu Lintang and Lubok Antu, STIDC was able to closely monitor and regulate the importation of timber from Indonesia. This is to ensure strict compliance to the existing procedures such as documentation and physical inspection of timber. The preventive and enforcement activities also involved conducting regular patrols along the Sarawak/Indonesia border with the cooperation of the related enforcement agencies such as the Police, Army, Forest Department, Sarawak Forestry Corporation, Customs Department, Malaysian Maritime Enforcement Agency and the Agriculture Department. Close rapport with these agencies had contributed to the success in combating timber smuggling activities and resulted in several seizures of smuggled timber. In 2009, Sarawak imported 1,549 cubic metres of sawn-timber from Indonesia compared with 37,513 cubic meters in This represented a decline of 96%. The drastic decline was attributed to intensive enforcement activities carried out by relevant authorities in Indonesia and Sarawak. STIDC also held regular meetings with timber importers and individuals to update them on the current policy and regulations on the importation of timber from Indonesia as well as to obtain necessary inputs for formulation of improved strategies and actions. STIDC also undertook preventive and enforcement activities to ensure that anyone involved in timber-related activities in Sarawak is registered with the Corporation, as stipulated in The Sarawak Timber Industry (Registration) Regulations,

20 NORTHERN AND CENTRAL REgIONS Aerial view of Tanjung Manis STIDC Northern and Southern Regional offices continued to play their pivotal roles as the agents of growth and catalysts of the timber industry in the Northern and Central Regions of Sarawak besides providing various services to the timber industry under their jurisdictions. Among the responsibilities of these Regional Offices are one to monitor the overall development of the timber industry under their respective purview, to implement sawn timber Grading Rules, to implement the Sarawak Timber Industry (Registration) Regulations, 2008, to process and issue export and import licenses for timber and timber products, to collect data on industrial workforce, to assist in industrial trainings for the timber sector, and to monitor log supply as well as Log Quota for local processing. While Bintulu divisional office and Limbang liaison office are under the ambit of Miri Regional Office, Sibu divisional as well as Sarikei and Mukah liaison offices are under the purview of Tanjung Manis Regional Office. Both Regional offices are managed by their respective Acting Regional Managers whose responsibilities are to plan, manage and oversee all activities at regional level in line with STIDC vision and mission. Tanjung Manis Airport STIDC Belian Holdings Sendirian Berhad in Bintulu Division, Sarawak is among STIDC subsidiaries involving actively in timber trading activities including sawn-timber. STIDC Wood-based Training Centre, Tanjung Manis Polima Compressed Wood Bintulu Sendirian Berhad is among STIDC associate companies whose core business activity is manufacturing of compression moulded pallet blocks and centre plugs. 18

21 CORPORATE INVESTMENT STIDC continued to diversify its roles by investing in various companies for the benefit of the people. Details of its corporate investment are as follows: Name of Subsidiaries Effective Interests Held (%) Principal Activities Harwood Timber Sdn. Bhd Timber trading STIDC Belian Holdings Sdn. Bhd Timber trading services Hillog Sdn. Bhd. Tanjong Manis Furniture Sdn. Bhd Woodworking and related timber-processing services Furniture manifacturing Saratim Insurance Agency Services Sdn. Bhd Insurance Agency Tanjong Manis Shipping Sdn. Bhd Tanjung Manis Development Sdn. Bhd Transportation and wharfing services, trading in construction materials and construction works Project Management Tanjung Manis Sawmill Sdn. Bhd Log trading Tanjong Manis Realty Sdn. Bhd. Hornbill Skyways Sdn. Bhd Planning, operating, managing, and marketing of realty projects Aviation services Tanjong Manis Resources Sdn. Bhd Production of wood chip Elmhurst Sdn. Bhd Landscaping and reforestation Teratim Sdn. Bhd Timber logging Aviation Realty Woodchips Production 19

22 Name of Associates Effective Interests Held (%) Principal Activities Polima Compressed Wood Bintulu Sdn. Bhd Manufacturing of compression moulded pallet blocks and core plugs PUSAKA KTS Forest Plantation Sdn. Bhd Reforestation and oil palm plantation Bintulu Adhesive & Chemical Sdn. Bhd Manufacturing of adhesives and chemicals Tanjung Manis Moulding Industries Sdn. Bhd Manufacturing of wood plastic composite products Shin Yang Industries ( Bintulu) Sdn. Bhd Timber extraction and sale Houting Sdn. Bhd Timber extraction and sale Selah Timber Sdn. Bhd Timber extraction and sale Shin Yang Plywood ( Bintulu) Sdn. Bhd Plywood manufacturing and sale Hotel Shipping Planted Forest Plantation 20

23 Activities in STIDC Chairman, the Honourable Datuk Amar Haji STIDC Chairman, The Honourable Datuk Amar Haji Awang Awang Tengah Ali Hassan, addressing the audience Tengah Ali Hassan (2nd right) and STIDC General Manager, Datu Haji Len Talip Salleh (left) presenting a souvenir to the in conjunction with STIDC 35th anniversary dinner. Chief Minister of Sarawak, the Right Honourable Pehin Sri Abdul Taib Mahmud (2nd left) during the anniversary dinner. 35TH ANNIVERSARY The Chief Minister of Sarawak, the Right Honourable Pehin Sri Haji Abdul Taib Mahmud (4th left) cutting the anniversary cake while the board members and others VIPs look on. STIDC Long Service Award receipients STIDC General Manager, Datu Haji Len Talif Salleh (left) receiving the 5S Certificate from The Malaysia Productivity Corporation Director General Dato Nik Zainiah Nik Abdul Rahman 21

24 2009 Regatta Sarawak Pesta Kaul Mukah Hari Raya Puasa Celebration Industry Update Annual Donation Family Day Tanjung Manis Day Visit to the Timber Museum STIDC Team Building Tanjung Manis Fishing Safari Ibadah Korban STIDC Furniture Industrial Complex, Kota Samarahan anniversary celebration Halal Hub Launching Ceremony Golf Competition 22

25

26 Part 1I FINANCIAL STATEMENTS 2009

27 1

28 2

29 3

30 t 4

31 5

32 6

33 7

34 8

35 9

36 10

37 11

38 12

39 13

40 14

41 15

42 16

43 17

44 18

45 19

46 20

47 21

48 22

49 23

50 24

51 25

52 26

53 27

54 28

55 29

56 30

57 31

58 32

59 33

60 34

61 35

62 36

63 37

64 38

65 39

66 40

67 41

68 42