KOTA KINABALU: The Sabah Timber Industries Association (STIA) has called on the state government to allow ready shipments to be exported during the Movement Control Order (MCO) period.
Its president Chua Yeong Perng said selected factories with expiring adhesives should also be given restricted production days in order to utilise their adhesive stock to avoid massive disposal problems.
"Shipment of ready goods, controlled movement of perishable raw material (felled logs) and systematic re-starting of manufacturing will go a long way in improving the industry’s ability to maintain and pay its workforce.
"STIA estimates that there are approximately 120 containers worth about RM10 million of products at port and at various factory locations that have been held back.
"There are approximately 100,000 -120,000 m3 (cubic metres) of felled logs, valued at between RM35 million and RM45 million, currently sitting idle due to the MCO," he said in a statement, today.
He said the value and quality of the logs continue to deteriorate each week, adding they expect these felled logs would have lost about 20 per cent of its inherent value.
Certain non-durable species, he added, have lost nearly all its commercial value by now.
"In addition to this, downstream mills are now faced with the critical problem of wood adhesives expiring.
"If partial production is not permitted over the next few days, it is estimated that 963,000 kilogrammes of plywood and woodworking adhesives will need to be disposed of.
"The value of adhesives and the disposal cost will come to between RM5 million and RM8 million.
"There is the concern also that Sabah may not have the facilities to dispose of such quantities in such a short time frame," said Chua.
He stressed that STIA is extremely concerned that the combination of the above factors will ultimately impact the industry’s short term ability to cover employee wages for April and the months after.
In event MCO is extended beyond April 14, STIA also suggested that the state government allows for certain upstream and downstream activities to commence operation.
"It is recommended that authorities take reference to other states in Malaysia like Sarawak and Johor which have permitted scaled down manufacturing operations to commence.
"It is understood that manufacturing in these states are limited within specific timber industrial clusters and a cap has been placed on the number of workers allowed to return to work.
"The authorities could take the initiative to allow movement of raw material and manufacturing to progressively startup within timber clusters (Keningau, Kota Kinabalu Industrial Park, Ladalam, Kimanis) that are not deemed high risk areas (red zones)," stressed Chua.