SEA TURTLE ADOPTION PROGRAMME

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1 SARAWAK TIMBER INDUSTRY DEVELOPMENT CORPORATION (STIDC) SEA TURTLE ADOPTION PROGRAMME Sea Turtle Adoption Programme is one of the extensive efforts in the protection of wildlife in Sarawak Sarawak s Finance Minister II and Minister of Urban Development and Tourism, Dato Sri Wong Soon Koh launched the Sea Turtle Adoption Programme at the turtle island, Pulau Talang-Talang Besar, near Kuching on 30th. April Initiatives on sea turtle conservation started in Sarawak in 1950s with the enactment of the Turtle Trust Ordinance. These efforts became more evident with the enactment of Wildlife Protection Ordinance, 1998 and Sarawak Biodiversity Ordinance, Further testimony to the State s commitment in this was sealed when all sea turtles were listed under the Totally Protected Species List in the Wildlife Protection Ordinance, 1998 (Amended 2003). This was followed by the proposal made to the State Government to gazette sea grass beds and coral reefs at Kuala Lawas area, which had been identified as feeding ground for green and hawksbill turtle as totally protected area. The Reef Ball Project was found as being successful in reducing the number of sea turtle mortality rate and ensuring sea turtle nesting areas are further protected. This project had also benefited the local fishermen by contributing significant increase in their catches. Another 5,000 reef balls are still needed to protect sea turtle critical habitat, its swimming areas, nesting beaches and feeding ground and migration pathway of sea turtles along the 1,000km coastline of Sarawak. This is where other conservation oriented organizations and private sectors can play their role and show support. The State Government, Sarawak continuously supports and had laid a solid foundation for sea turtle protection at Talang-Satang National Park which led to the Turtle Adoption Programme. Legislations pertaining to sea turtles in Sarawak are in place and have been regularly revised to suit the current needs Dato Sri Wong (second left) and Datu Haji Len Talif Salleh, Director of Sarawak Forest Department & STIDC General Manager (left) releasing the Green Turtle to the sea. in managing sea turtle research and conservation. Legislation such as Turtle Trust Ordinance, 1957 (Amended 1967), Turtles (prevention of Distribution) Rules, 1962, Customs (Prohibition of Exports/Imports) Orders, 1998, Wildlife Protection Rules, 1988 (Amended 2003), National Parks and Nature Reserves Ordinance, 1998, National Park and Nature Reserves Rules, 1999 and Wildlife Protection Ordinance, 1998 (Amended 2003) provide further protection in legal terms for sea turtles. Sea Turtle Adoption Programme gives the opportunity to the public to experience turtle conservation in Sarawak and see its positive progress made thus far. The four-day three-night on site programme is conducted from May to September yearly. Under this programme, the participants have the chance to experience activities such as tagging and measuring of turtles, beach patrolling, transferring of eggs to hatchery, releasing of hatchlings, data recording, assisting in other researches, education and other conservation activities. The Turtle Adoption Programme is one of the State s extensive efforts in the protection of wildlife in Sarawak. It is also a way of incorporating and involving both locals and foreigners to value the efforts and celebrate what Sarawak has done thus far in sea turtle conservation. Sea Turtle Adoption Programme is one way of incorporating and involving people not only locals but across the globe to value efforts and celebrate what Sarawak has done on turtle conservation, Dato Sri Wong said. Eight species are found at Talang-Satang National Park. However, in Sarawak, 99% of nesting sea turtles recorded are of the Green Turtle species. Members of the public are cordially invited to participate in this programme. Cost for adopting a turtle and a nest is RM200 and RM100 respectively. For more detail on Sea Turtle Adoption Programme, please log-on t o w w w. s a r a w a k f o r e s t r y. c o m or info@sarawakforestry.com SUMMARY Sea Turtle Adoption Programme gives the opportunity to the public to experience turtle conservation in Sarawak and see its positive progress made thus far. The Reef Ball Project was found as being successful in reducing the number of sea turtle mortality rate and ensuring sea turtle nesting areas are further protected. Another 5,000 reef balls are still needed to protect sea turtle critical habitat, its swimming areas, nesting beaches and feeding ground and migration pathway of sea turtles along the 1,000km coastline of Sarawak. Legislations pertaining to sea turtles in Sarawak are in place and have been regularly revised to suit the current needs in managing sea turtle research and conservation. PERKASA VOL. 5/6 1/2 (May-June2008) (Jan.-Feb.2008) 53

2 PROSPECT OF THE WOOD-BASED INDUSTRY UNDER SCORE The wood-based industry had been identified as one of the priority industries to be further promoted and developed under SCORE The Sarawak Corridor of Renewable Energy (SCORE) is one of the five regional development corridors to be developed throughout Malaysia. It is a major initiative undertaken to develop the Central Region and transform Sarawak into a developed State by the year SCORE aims to expedite the State s economic growth and development as well as to improve the living standards of the people of Sarawak. The corridor is located within the Central Region of Sarawak stretching along the coast from Similajau in Bintulu Division to Tanjung Manis in Mukah Division and extending into the surrounding areas and the hinterland. It covers an area of about 70,000 sq km. Parallel with the objectives of SCORE, new heavy industries (trigger projects) will be developed to propel and accelerate the industrial and economic development of the Central Region and the State as a whole. The trigger projects will also create new supporting industries as well as new employment opportunities. The wood-based industry had been identified as one out of ten priority industries to be further promoted and developed under SCORE, with greater participation from the private sector. The development of this industry and its associated One of the forest plantations found in the corridor. downstream value-added activities will be the driving force behind the growth of the industrial development of the corridor. Among the industries which will continue to be developed and promoted intensively in the woodbased sector is pulp and paper industry. This industry will be supported by the forest plantation establishments which had been carried out actively by both the government and private sectors. The establishment of forest plantations will not only supply raw materials for the pulp and paper industry but also for the production of mechanical wood products such as sawn-timber, plywood and MDF. These products will be further utilized to produce value-added products like furniture. In 2007, the corridor contributed RM7.1 billion or 92.2% out of the total export earnings from the woodbased sector of Sarawak. This region also exported 2.6 million M 3 of logs during the corresponding period. In terms of direct employment, the wood-based industry within the corridor employed 41,521 or 83% out of 50,000 workforce in this sector. This industry is also poised to create 110,000 jobs by SUMMARY Wood-based sector had been identified as one of the priority industries to be further promoted and developed under SCORE. Among the industries which will continue to be developed and promoted intensively in the woodbased sector is pulp and paper industry. SCORE will create 110,000 new jobs in the wood-based sector by PERKASA VOL. 5/6 (May-June2008)

3 On 5th June 2008 the Federal Government, Malaysia restructured the fuel price system with petrol price rising 41% to RM2.70 per liter and diesel price up 63% to RM2.58 per liter. SARAWAK TIMBER INDUSTRY DEVELOPMENT CORPORATION (STIDC) IMPACTS OF THE FUEL PRICE HIKE ON THE WOOD-BASED INDUSTRY The situation that we are facing now poses great challenges to the industry and if not properly managed could cause a setback to the development of the industry. I believe this should not be a deterrent for us to progress and develop further and now is the time for the industry to look for alternative ways to move forward and remain competitive. This is also not the first time we are facing the economic slowdowns as we have overcome the 1997 economic crisis and we managed to succeed and survive. The industry s success in speareheading progress in recent years served as a solid proof of how mature and resilient our timber industry is in overcoming the challenges STIDC General Manager said. Like other sectors, the wood-based industry in Sarawak is not spared from the adversity of this global phenomenon. Executive Director of a logging company said, the soaring fuel price is too much for the industry to absorb adding that the situation has led to the drastic increase in the cost of production particularly transportation charges as its logging activities are in the interior areas. There are possibilities for our company to resort to various cost cutting measures like reducing production volume, closing the unviable businesses and staff retrenchment, if this situation persisted he said. General Manager of another logging company also shared the same view on this phenomenon saying that it has led to the increase of their operating costs by 35%. This was aggravated by the demand for higher fees from our contractors he said. Meanwhile, Managing Director of sawntimber and moulding company pointed out that their transportation cost has increased by 50%. He added that the profit margin has dropped sharply and the market is becoming uncertain following the announcement of the new fuel prices. According to him, the situation is affecting the demand from their customers as well as the business competitiveness because the prices of their commodities are becoming more expensive. As a result of the current business environment, our customers are buying other materials like aluminium and rubber to substitute timber products. Besides, they are turning to other suppliers from New Zealand and Australia who offer similar products at a more competitive price in order to enjoy lower freight charges due to shorter distance he said. Grouse was also heard from an exporter of moulding products and laminated board saying that the transportation cost of his company has increased by 40%. Soaring fuel prices forced us to cut production volume against increasing cost. This situation has made it difficult to survive as the business is becoming less competitive he said. Also shared the view on the plight due to this global issue was the Senior Manager of MDF Company who said that it has led to the escalating freight charges and decline in the demand for MDF. The construction industry, Japan is also affected by this phenomenon. Hence, there is a decline in the demand for MDF from them he said. General Manager of STIDC, Datu Haji Len in his welcoming remarks in one of the briefings to the timber industry recently urged the industry to look for alternative ways to move forward and Sawn-timber. remain competitive in facing the global challenges. The situation that we are facing now poses great challenges to the industry and if not properly managed could cause a setback to the development of the industry. I believe this should not be a deterrent for us to progress and develop further and now is the time for the industry to look for alternative ways to move forward and remain competitive. This is also not the first time we are facing the economic slowdowns as we have overcome the 1997 economic crisis and we managed to succeed and survive. The industry s success in spearheading progress in recent years served as a solid proof of how mature and resilient our timber industry is in overcoming the challenges he added. The wood-based sector remains the mainstay of the state s economy. The export earnings from this sector for the first quarter of 2008 accounted for RM2.583 billion or 13% out of the state s total income compared with RM2.617 billion or 16.8% out of the state s total income during the corresponding period in SUMMARY The industry is urged to look for alternative ways to move forward and remain competitive. The industry s success in spearheading progress in recent years served as a solid proof of how mature and resilient our timber industry is in overcoming the challenges. PERKASA VOL. 5/6 (May-June2008) 7

4 MARKET PERFORMANCE ( JANUARY JUNE 2008) Value of logs and timber products exported from January to June 2008 increased by 3.80 % at RM billions against that of RM billions for the corresponding period in There were increases in the overall volumes of logs, sawn timber, plywood, veneer, particle board, medium density fibreboard, block board and other timber products exported. However, volumes of dowels, mouldings and laminated board as well as tonnage of woodchip exported decreased. The values of log, sawn timber, veneer, particle board, medium density fibreboard, block board and other timber products exported from January to June, 2008 increased by 9.17 %, %, %, %, %, 100 % and 5.27 % respectively, compared to that of the corresponding period in In cases of plywood, dowels, mouldings, laminated board and woodchips the values exported from January to June, 2008 decreased by 0.76 %, %, % % and % respectively, compared to that of similar period in Values of plywood, logs and sawn timber at RM billions, RM billion and RM billion respectively, contributed %, % and % to the total exported value of logs and timber products from the State since January until June, (Table 1) Logs Volume of logs exported increased by % to 1,917,960 M 3 from 1,743,195 M 3 and the value increased by 9.17 % to RM billion from RM billion for the first six months of 2008 in comparison with similar period of India remains the number one importer of the States logs, followed by Taiwan, China, Japan, Vietnam and South Korea. A substantial increase by % in the volume of log exported to India at 950,632 M 3 valued at RM billion contributed % to the overall value of logs exported from January to June, 2008 against that of 695,735 M 3 exported for the corresponding period last year. Volumes of logs exported to Vietnam and South Korea increased by % and 6.55 % respectively, for the first half of 2008 against that of the corresponding period last year. However, export of logs to Japan, China and Taiwan decreased by %, 9.52 % and 7.07 % respectively, for the first six months of 2008 compared to similar period in Consequently, export of logs to India, Taiwan, China and Japan constituted % of the total volume and contributed % to the total value of log exported from January to June, (Table 2) Sawn Timber Volume of sawn timber exported increased by % to 581,664 M 3 from 485,338 M 3 and valued at RM billion from RM billion, an appreciation in value by % for January to June 2008 against that of similar period last year. Traditional importing countries, such as Thailand, Middle East, Taiwan, Philippines and South Africa increased their volumes of purchase for January to June, 2008 by %, %, %, %, and 7.93 % respectively, as compared with that of the corresponding period in However, 8 PERKASA VOL. 5/6 (May-June2008) volumes of the product exported to Korea, Japan and China for the first half of 2008 decreased by %, % and % respectively, compared to similar period the previous year. Thailand maintained its position as the number one purchaser of the States sawn timber for the first six months of 2008 at 164,364 M 3 valued at RM billion, followed by the Middle East which imported 118,485 M 3 valued at RM billion. Taiwan, Philippines and South Africa imported 72,262 M 3, 45,322 M 3 and 15,314 M 3 valued at RM billion, RM billion and RM billion, respectively. Export of sawn timber to Thailand, Middle East and Taiwan constituted % of the overall exported volume for the first half of 2008 and contributed % to the overall value of the product. (Table 3) Plywood Plywood export for the first half of 2008 increased by % at 1,694,815 M 3 compared to that of 1,375,761 M 3 exported for the corresponding period in Plywood remains the number one earner for the States log and timber products export revenue, contributing % to the overall products value. Despite substantial increase in the volume exported there was a decrease in value by 0.76 % at RM billions for the first six months of 2008 from RM billions for similar period in The decrease in the overall value could possibly be attributed to a substantial decrease in its unit price by 19.44% for the first half of 2008 as compared to similar period the previous year. Japan s purchase of plywood at 835,748 M 3 or % of the volume exported for the first six months of 2008 at a value of RM billion imposed its position as the number one importer of the States plywood. Other big time importers of plywood are Korea, Middle East and Taiwan, making purchases of % at 243,085 M 3, % at 177,179 M 3, and 9.96 % at 168,784 M 3 respectively, contributing combined revenue of RM billion at % of the overall value of plywood exported for the period. Export of plywood to Japan, Korea, Middle East and Taiwan constituted % of the overall exported volume and contributed % to the overall revenue from the product for the first half of (Table 4) Other Timber Products Other timber products include laminated veneer lumber, veneer, dowels, mouldings, particle board, MDF, block board, laminated board, woodchips and other timber products (mentioned in Table 1). Value of the products at RM billion accounted for % of the overall value of logs and timber products exported during the first half of Subsequently, the value exported for the first six months of 2008 was 6.23 % more than the value exported for the corresponding period in 2007 which stood at RM billion. Volume of veneer, MDF, particle board, and block board exported from January to June, 2008 at 189,880 M 3, 90,769 M 3, 67,514 M 3 and 9,365 M 3 respectively, indicated respective increases by %, 4.31 %, % and 100 % against that exported for similar period last year. However, there were decreases in export volumes of dowels, mouldings, laminated board and tonnage of woodchips, from January to June, 2008 compared to the corresponding period in (Tables 5 & 6) Future Outlook By the end of June 2008, prices of major products such as logs, sawn timber, plywood and veneer though not very encouraging started to stabilize. Average unit prices of logs, sawn timber, plywood and veneer by the end of June, 2008 respectively were 0.77 %, 1.78 %, % and % lower, compared to corresponding period in However, in cases of dowels, mouldings, particle board and MDF the unit prices by the end of June, 2008 respectively were %, %, 2.28 % and % higher in comparisons to that of similar period in Despite the lower unit prices, volumes of logs, sawn timber, veneer and plywood exported for the first six months in 2008 were higher than that exported for the corresponding period in Similarly, the volumes of particle board and MDF exported for the period in 2008 increased and so were their prices. However in cases of dowels and mouldings they were on the contrary, despite registering higher unit prices the volumes exported were lower than that for the corresponding period in Traditional front-runners in the importation of the States logs in descending order were: India, Taiwan, China, Japan and Vietnam which together contributed % to the overall log export revenue for the first half of Similarly, Thailand, Middle East and Taiwan were the top three importers of sawn timber, contributing % to the sawn timber export revenue for the first half of Likewise, Japan, Korea, Middle East and Taiwan were the four main purchasers of the States plywood for the first half of Weather conditions in the State for May and June, 2008 was quite favourable and conducive for logging activities and hence the production of logs have stabilized and sufficed in meeting demands from importing countries. By June, 2008 the Indian markets absorbed % of the States logs export. India s demand for the States logs might increase through to the following months of 2008, so as to make up for their lost source in Myanmar, which was devastated by the recent cyclone. However, demand for Sarawak s logs for the production of plywood in Japan up to June, 2008 remained sluggish owing to the country s curtailment policy on its production, as a measure to level off their inventory. The steep rise in fuel price which directly increased the costs of logs production and shipping could be additional factors that would distract Japan and other traditional importing countries in increasing their import for the product. Towards the second half of 2008, demand for logs by India is expected to increase tremendously. However, export of logs to Japan would probably increase when production curtailment policy on plywood by the Japanese plywood manufacturers ceased.

5 SARAWAK TIMBER INDUSTRY DEVELOPMENT CORPORATION (STIDC) TRADE STATISTICS SARAWAK TABLE 1. EXPORT SUMMARY OF TIMBER AND TIMBER PRODUCTS FROM SARAWAK PRODUCTS % Change January-June January-June 2008/2007 Volume FOB Value Value Volume FOB Value Value (M 3 ) (RM 000) % (M 3 ) (RM 000) % Volume Value LOGS 1,917, , ,743, , SAWNTIMBER 561, , , , PLYWOOD 1,694,815 2,138, ,375,761 2,154, (0.76) VENEER 189, , , , DOWELS 1,803 5, ,922 6, (38.28) (16.19) MOULDINGS 5,790 15, ,720 27, (54.48) (45.55) PARTICLEBOARD 67,514 32, ,276 28, MDF 90,769 97, ,018 83, BLOCK BOARD 9,365 9, LAM. BOARD/FLOORING 8,572 23, ,553 34, (51.16) (31.21) WOODCHIPS (TONNE/KGM) 128,700 14, ,500 24, (11.55) (42.01) OTHER TIMBER PRODUCTS 64, , TOTAL 3,975, ,829, EXPORT VALUE OF TIMBER & TIMBER PRODUCTS FROM SARAWAK PERKASA VOL. 5/6 (May-June2008) 9

6 TABLE 2. EXPORT OF LOGS BY COUNTRY OF DESTINATIONS DESTINATIONS Volume (M 3 ) 2008 January-June FOB Value (RM 000) Value % Volume (M 3 ) 2007 January-June FOB Value (RM 000) Value % INDIA 950, , , , CHINA 264, , , , JAPAN 228, , , , TAIWAN 265, , , , SOUTH KOREA 36,700 17, ,443 15, VIETNAM 155,918 54, ,312 24, OTHERS 16,676 9, ,895 15, TOTAL 1,917, , ,743, , EXPORT VALUE OF LOGS BY COUNTRY OF DESTINATIONS 10 PERKASA VOL. 5/6 (May-June2008)