Part I - Sarawak Timber Industry Development Corporation

Transcription

Contents
Page
Part I
Corporate Vision
1
Corporate Mission
1
Quality Policy
1
Corporate Functions
1
STIDC Board of Management
2
STIDC Management Team
4
Corporate Structure
6
Message From the Right Honourable Chief Minister of Sarawak cum
Chairman, STIDC Board of Management
8
Main Corporate Activities
- Trade Development
11
- Domestic Trade
12
- Resource Development
13
- Project Development
14
- Industrial Planning
15
- Preventive & Enforcement
16
- Registration & Licensing
17
- Divisional Offices
17
- Corporate Investments
18
STIDC Activities in 2007
20
Part II
Financial Statements
1
Part I
Corporate Vision
PUSAKA (STIDC) as the leader and catalyst of the timber industry.
Corporate Mission
To plan, coordinate and develop the timber industries in Sarawak towards optimum and efficient utilisation
of timber resources by encouraging downstream processing and product diversification. In line with
these objectives and the National Vision 2020, STIDC is responsible to develop a disciplined, skilled and
capable work force.
Quality Policy
Committed to render quality services professionally in line with STIDC objectives to meet customers’
satisfaction.
Corporate Functions
-
Control and co-ordinate the manufacturing standards and trade practices of timber industry;
-
Make recommendations to the Government as to the methods, measures and policies to be adopted
to facilitate the improvement of existing timber industry, and where approved by the Governor-inCouncil, to implement and assist in the implementation of the same;
-
Encourage effective utilisation of timber with emphasis on products diversification and quality
control;
-
Promote, stimulate and facilitate the development of the 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;
-
Provide technical advisory services for the purpose of assisting in the development of existing timber
industry and in the establishment of new industries; and
-
Provide training in various aspects of logging operations, activities
associated
with the timber
processing, sawmilling, sales and marketing of timber.
ANNUAL REPORT 2007
1
Seated (left to right)
YBhg Tan Sri Datuk Amar Haji Bujang Mohd Nor, YB Datuk Amar Haji Awang Tengah Ali
Hasan, YAB Pehin Sri Haji Abdul Taib Mahmud (Chairman), YB Tan Sri Datuk Amar Haji
Abdul Aziz bin Haji Husain, YBhg Datu Wan Alwi Dato’ Sri Wan Hashim
Standing (left to right)
YBhg Datuk Haji Abdul Hamed bin Haji Sepawi, YBhg Datu Haji Len Talif Salleh, YB Tuan
Haji Julaihi Narawi, YBhg Datu Cheong Ek Choon
2
SARAWAK TIMBER INDUSTRY DEVELOPMENT CORPORATION
STIDC Board of Management
Chairman
YAB Pehin Sri Haji Abdul Taib Mahmud
Chief Minister of Sarawak cum Sarawak
Minister of Planning and Resource Management
Board Members
YB Datuk Amar Haji Awang Tengah Ali Hasan
Minister of Planning and Resource Management II
Minister of Public Utilities
YB Tan Sri Datuk Amar Haji Abdul Aziz bin Haji Husain
Group Managing Director, Sarawak Energy Ltd.
YBhg. Tan Sri Datuk Amar Haji Bujang Mohd Nor
(until 21 May 2007)
Executive Chairman, Harwood Timber Sdn Bhd
YBhg. Dato Sri Ahmad Tarmizi bin Haji Sulaiman
(appointed 22 May 2007)
State Financial Secretary
YB Tuan Haji Julaihi Narawi
Chairman, Lingkaran Jaya Sdn Bhd
YBhg. Datu Wan Alwi Dato’ Sri Wan Hashim
Permanent Secretary, Sarawak Ministry of Planning and Resource Management
YBhg. Prof. Datuk Dr. Yusuf Hadi
Executive Chairman, Ta Ann Holdings Berhad
YBhg. Datu Cheong Ek Choon
Director, Sarawak Forestry Corporation Sdn Bhd
YBhg. Datu Haji Len Talif Salleh
General Manager, STIDC
Not In The Photo
ANNUAL REPORT 2007
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Seated (left to right)
Cik Haluyah Awi, Tuan Haji Rabani Taip, YBhg. Datu Haji Len Talif Salleh, Puan Dayang
Nena Abang Bruce, Puan Catherine Sng Bee Seio
Standing (left to right)
Encik Tagat Jimbat, Encik Edmund Daging Mangku, Encik Mohd. Hinri Abdullah,
Encik Hashim Haji Bojet, Encik Paul Lau Ngie Hung, Encik Jerry Mawan Lading
4
Management Team
YBhg. Datu Haji Len Talif Salleh
Cik Haluyah Awi
B.Sc (Forestry), The Australian National University,
Australia
General Manager
Bachelor of Law Degree (LLB) (Hons),
Institut Teknologi MARA
Diploma in Law, Institut Teknologi MARA
Assistant General Manager (Administration)
Tuan Haji Rabani Taip
B.Sc (Resource Econ.), Dip. in Agriculture,
Universiti Pertanian Malaysia
Deputy General Manager
Encik Tagat Jimbat
B.Sc. (Forestry), Universiti Pertanian Malaysia
Assistant General Manager (Domestic Trade)
Encik Hashim Haji Bojet
Master in Corporate Business Administration,
CMM/ Ohio University USA
BBA (Hons), Universiti Kebangsaan Malaysia
Acting Senior Assistant General Manager
(Project Development)
Encik Edmund Daging Mangku
Assistant General Manager (Resource Development)
Encik Mohd. Hinri Abdullah
Puan Dayang Nena Abang Bruce
Master (Business Administration),
Heriot-Watt University, UK
Diploma in Marketing, The Chartered
Institute of Marketing, UK
B.Econ.(Hons), Universiti Malaya
Acting Senior Assistant General Manager
(Trade Development)
Diploma Pengurusan Pemasaran & Pengedaran
Fizikal, Institut Pengajian Sains Pengurusan Delft,
Netherlands
Diploma in Public Administration,
Institut Teknologi MARA
Assistant General Manager
(Preventive & Enforcement)
Encik Paul Lau Ngie Hung
Puan 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)
Acting Central Region Manager
Encik Jerry Mawan Lading
Acting Northern Region Manager
ANNUAL REPORT 2007
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Corporate Structure
Ministry of Planning and Resource Management
Board of Management
General Manager
Corporate Affairs Section
Registration &
Licensing Division
• Registration &
Licensing
Industrial
Planning
Division
• Industrial Planning
• Quality Control
• Industrial Standard
Project Development
Division
• Technical Services
• Entrepreneur
Development
• Project
Resource
Development Division
• Planted Forest
Resource
• Natural Forest
Resource
• Industrial Training
Central Region Offices
• Sibu
• Tanjung Manis, Mukah
• Sarikei (Liaison Office)
• Mukah (Liaison Office)
6
Internal Audit Section
Legal and Secretarial
Services Section
Deputy General Manager
Trade
Development
Division
• Trade
Development
• International
Relations
• Publications
Domestic Trade
Division
• Domestic Trade
Administration
Preventive &
Enforcement Division Division
• Human Resource
• Preventive &
Management
Enforcement
• Human Resource
Development
• Information &
Communication
Technology
• General Services
• Building
Management
• Security
Finance &
Investment
Division
• Finance
• Investment
Northern Region Offices
• Bintulu
• Miri
• Limbang (Liaison Office)
ANNUAL REPORT 2007
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8
Message From the Right Honourable
Chief Minister of Sarawak
Pehin Sri Haji Abdul Taib Mahmud
warahmaatullahi
continuously stepping up the initiatives to address
wabarakatuh and Salam Sejahtera. In the Name of
issues affecting the local timber industry. This
Allah, The Most Gracious and The Most Merciful.
includes intensifying measures to prevent illegal
Assalammualaikum
timber logging and trading activities through
On behalf of STIDC Board of Management, it is
more concerted enforcement and surveillance
my pleasure to present this Annual Report and
efforts by relevant governmental bodies, installing
Financial Statement for the year ended 31
a Satelite-lmagery System and a Monitoring,
December 2007.
Enforcement and Prevention (MEP) System which
are advanced enforcement and surveillance
The market sentiment for timber and timber
technologies used to detect encroachment
products was quite weak throughout year 2007.
and illegal logging activities. Our intensive and
Despite the promising trend in the first half of
extensive involvement in discussions and forums at
the year, exports earnings of timber and timber
both national and international levels also served
products ended on lower note in 2007. The export
as a testimony of our commitment to address the
value declined by 12% compared to the previous
issue of illegal logging and trading activities in the
year. This represented a decrease of RM1.03 billion
State.
to RM7.74 billion from RM8.77 billion recorded
during 2006.
In today’s market environment where timber
certification
is
gaining
popularity
countries, Sarawak
has
among
The recession in global market was due to
consuming
already
economic uncertainties of USA that had also
been embarking on a timber tracking system
affected the timber industries. The main issue
called Chain-of-Custody system which will allow
faced by the timber industries was fuel price hike
transparency in all activities related to the export
which correspondingly increase the energy cost.
of timber and timber products from Sarawak,
Other market barriers include tight supply of raw
aimed at enhancing the customers confidence
materials, procurement policies, political worries,
towards its legality and sustainability.
surging freight rates and the appreciation of the
Malaysian Ringgit against the US dollar.
In shaping the future of the local timber industry
to be more competitive and resilient in the global
Sarawak has entered this period of global
arena, the government through STIDC will continue
uncertainty by intensifying measures to minimize
to address all issues related to administrative and
the effects of these challenges which include
human capital matters while at the same time
ANNUAL REPORT 2007
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enhancing Research and Development activities
as the key contributor to the State GDP as well as
in forest plantation as well as in downstream
to the prosperity and growth of the nation.
timber processing sectors.
There is no sign of a quick recovery in the global
Forest resource depletion is becoming a reality in
market that can enhance the prospect of the
the producing countries. It is pertinent to address this
timber industry in the near future. While other
problem accordingly to sustain the wood based
factors such as oil prices and procurement policies
industries and to balance the outflow of foreign
are beyond control, local manufacturers have to
exchange from the state. The establishment of forest
take initiatives in producing more value added
plantation is considered as an integral part of the
products especially from cheaper raw materials
long-term forest resource management strategy.
such as wood wastes to remain competitive in the
Production from forest plantation supplements
international market.
and complements the supply from natural forests
in order to ensure adequate timber supply to the
I would like to thank my fellow STIDC Board
wood based industries.
Members, relevant government departments and
statutory bodies, partners and suppliers, clients and
Through concerted efforts and co-operations from
other stakeholders for their undivided support and
relevant parties and greater participation from
co-operation. My sincerest gratitude also to the
the private sector, I am confident Sarawak timber
management and staff of STIDC for their hard work
industry will continue to forge ahead and remain
in making this year’s Annual Report a success.
PEHIN SRI HAJI ABDUL TAIB MAHMUD
Chief Minister of Sarawak
Chairman, STIDC Board of Management
10
Main Corporate Activities
Trade Development
The
local
timber
industry
has
been
facing
manufacturers
and
exporters.
STIDC
is
also
quite a number of challenges, especially from
committed and actively involved in organizing the
nongovernmental organizations (NGOs) which
Malaysian Forest Dialogue in addressing issues
among others, constantly link tropical timber
relating to the forestry sector.
trade with illegal logging activities, environmental
destruction and global warming. In addition,
STIDC appointed an independent consultant, URS
governments and consumers in importing countries
Australia Pty Ltd to study and review the process for
also emphasize that the supply of timber be from
Chain of Custody (CoC) in Sarawak. Besides being
legal sources and sustainable forest management,
able to identify the critical areas for improvement,
leading to stricter procurement policy. These have
this study is also crucial in giving assurance that our
adverse impact on demands of timber products
timber products come from legal and sustainable
coupled with slower global economic growth which
sources.
resulted in the decrease of Sarawak timber export
value by 12%, from RM8.77 billion in 2006 to RM7.74
STIDC in collaboration with the Malaysian Timber
billion in 2007.
Council
(MTC)
had
successfully
organized
another familiarization visit of the European trade
To meet these challenges and in an effort to
representatives to Sarawak. Part of the objectives of
disseminate and correct any misperception with
this program is to provide delegates with an insight
regard to issues relating to state legislation on forest
into the existing state legislation pertaining to the
management and timber industry, STIDC played
forests and forestry sector in the state. It is also our
proactive roles throughout 2007 by participating in
hope that the delegates will stand to benefit from
forums at national, regional and international levels.
this program as they were exposed to all aspects
In the International Seminar for “Tackling Illegal
relating to the timber industries in the state.
Logging” held in Tokyo, STIDC presented a paper
on Chain of Custody for Sarawak - Timber Tracking
In enhancing the awareness of the usage, marketing
Procedure. STIDC also participated in a similar
and development in forest plantation, STIDC
forum on illegal logging organized by Chatham
successfully organized an international seminar
House in London.
on ‘The Potential and Challenges of Utilization and
Marketing of Acacia’. The seminar, jointly organized
STIDC had also organized a briefing for the
with Sarawak Forests Department and Sarawak
industry on Japan’s Action for Tackling Illegal
Timber Association (STA), was officiated by The Right
Logging Government Procurement Policy. The
Honorable Pehin Sri Haji Abdul Taib Mahmud.
briefing on Japan’s green procurement policy
was aimed at providing right information and
STIDC together with other relevant agencies in
creating understanding amongst local timber
Sarawak and the federal government continued to
ANNUAL REPORT 2007
11
be actively involved in discussions with the European
Assurance System (TLAS), one of VPA’s major
Commission (EC) in Forest Law Enforcement,
components.
Governance and Trade (FLEGT) Voluntary Partnership
Agreement (VPA). The first Malaysia-EC Senior
In an effort to promote our timber and timber
Official Meeting (SOM) was held in Miri, Sarawak,
products, STIDC organized a Timber Selling Mission
while the second meeting was held in Brussels,
to India (Chennai, Bangalore and Mumbai) on 2 - 9
Belgium. STIDC was also involved in Technical
December 2007 as well as participated in the Export
Working Committee (TWG) meetings between
Furniture Exhibition (EFE) in Kuala Lumpur. In order
Malaysia and the European Union, stakeholder
to remain competitive in the international trade
consultations, National Steering Committee (NSC)
environment, STIDC will ensure that continuous
and Working Group (WG) meetings. The FLEGT VPA
efforts be undertaken to enhance as well to protect
activities in 2007 were mainly focused on drafting
and safeguard the interests of the state and the
and preparing the licensing system, Timber Legality
local timber industry.
Domestic Trade
Domestic Trade Division is responsible for the
leads to an improved delivery system that meets
processing and issuing of export and import
customers’ satisfaction.
licences for logs and timber products using the
ePermit System.
The total number of export licenses issued in 2007
were 27,090 as compared to 34,030 in 2006, a
12
On 15th August, 2007, STIDC and Dagangnet
decease by 20.39 %. From the total, 30.99 % or 8,396
Technologies Sdn Bhd successfully launched the
export licenses issued for plywood, 28.29 % or 7,665
ePermit System for the import and export of timber
for logs, 22.42 % or 6,075 for sawn timber, 5.34 % or
and timber products to and from Sarawak. The
1,447 for medium density fibre board (MDF), 3.52 %
launch was held at Bandar Baru, Tanjung Manis,
or 955 for veneer and 9.44 % or 2,552 for other timber
Mukah.
products.
The implementation of this system enables on-
For further enhancement and strengthening of
line application for export and import of logs and
quality services, the Domestic Trade Division has
timber products to be carried out. Besides efficiency,
introduced MS ISO 9001:2000 with a documentation
the system enables applicants to check the status
workshop conducted by a Consultant from MFQ
of their application easily and at the same time
Asia in December, 2007.
Resource Development
STIDC’s roles in Resource Development are to ensure
13,000 m3 and of which 10,000 m3 or 78% has been
that sufficient supply of raw materials and human
exported. The introduction of Ramin export quota is
capital is always sustainably available. In achieving
a precautionary measure undertaken by CITES to
these fundamental functions, prominent activities
protect the species from possible extinction.
that were implemented during the year consisted of
monitoring the implementation of log quota policy
The issuance of legality statement certificates became
and organizing industrial meetings.
relevant at times as some of the importing countries
might request for verification of the origin and legal
Other equally important activities conducted were,
status of the timber products. A total of 200 certificates,
monitoring the implementation of Ramin export
amounting to 13,300 m3 of timber products was issued
quota, processing of log importation applications,
throughout 2007 as compared to 210 certificates,
issuing sustainable forest management and legality
amounting to 16,700 m3 of timber products, issued in
statement
the previous year.
certificates,
monitoring
the
logging
progress of STIDC’s timber licensed areas, monitoring
the progress of STIDC’s licences for planted forests
To further enhance the availability of raw materials
and involvement in the technical committee for the
for timber processing industry, importation of logs
recruitment of foreign workers.
was permitted with prior approval from the Ministry of
Planning and Resource Management (MPRM). Apart
3
In regard to log quota policy, about 7.0 million m or
from that, the status updates on planting or logging
85% of the total log production has been processed
activities at STIDC timber licensed areas have been
locally in 2007 as compared to 5.6 million m3 or 77%
consistently carried out throughout 2007 in order to
in the previous year. This is a clear indication that the
identify any possible areas of improvement for more
timber industry is pro-actively involved in the business.
efficient implementation.
The log quota policy requirements remained a status
quo i.e. still mandatorily requiring 60% of the total log
Another important dimension in the area of resource
production to be reserved for local processing.
development was capacity building, of which STIDC
aimed to cater sufficiently for the needs of human
Apart from this, to encourage greater participation
capital in the timber industry.
in commercial tree plantation, a supplementary
source of future log supply, STIDC has embarked on
Throughout 2007, more than 100 youths were
collaborative research and development programs
successfully
with the private sectors to determine the suitability of
carving and timber grading skills during structured
timber species for tree plantations.
skill-based trainings organized on an annual basis.
trained
in
furniture
making, wood
Supplementary efforts such as organizing human
STIDC has also been tasked with closely monitoring the
resource development programs were periodically
distribution and exportation of Ramin timber products.
initiated which were consistent with the needs of the
In 2007, Sarawak has been accorded, by Convention
industry.
on International Trade in Endangered Species of Wild
Fauna and Flora (CITES), a Ramin export quota of
Apart from that, STIDC continued its extensive
ANNUAL REPORT 2007
13
involvement
in
the
Jawatankuasa
Pengambilan
industry throughout 2007.
Pekerja Asing Sarawak which was very crucial in
determining an adequate supply and availability of
In a nutshell, forest and human resources development
manpower, be it the expatriate workers or the general
activities in 2007 were successfully carried out in
workers, in order to meet the operating capacity of
tandem with the aspirations of National Vision 2020
the industry. With the support from STIDC, 6,200 work
which required an uninterrupted supply of raw
permits were issued by the Labour Department for
materials and human capital for current and future
the recruitment of foreign workers in the local timber
development of Sarawak timber industry.
Project Development
As a committed corporate body, STIDC whole-
projects launched in 2007 were Palm Oil Industrial
heartedly embraced the notions of Corporate Social
Cluster, Central Oil Distribution Terminal and the
Responsibility and Corporate Social Investment
new mosque for Kampung Rajang.
(CSI) - the former addressing STIDC’s overall
response to economic, social and environmental
Besides that, STIDC new business venture in the
considerations and the latter (in addition to its
residential project i.e. Sumber Alam Sanctuary is
regular business activities) our contribution to the
one of STIDC’s efforts in diversifying its activities. The
communities in which we serve.
residential project, a pioneer one ever done by
STIDC, aimed at building homes that not only last
Apart from the regular business activities, STIDC is
for generations but appreciate in value, ranging
also entrusted with the task of shaping the future
from medium to high-end residential. The project
of Sarawak through the development of Tanjung
was officially launched by the Right Honorable
Manis New Township with a number of industries
Chief Minister of Sarawak, Pehin Sri Haji Abdul Taib
to be developed there i.e. palm oil, shipbuilding,
Mahmud in February 2007.
tourism and fisheries.
As entrepreneurship is indispensable for economic
Until 2007, STIDC has successfully transformed
development, STIDC has long been providing
Tanjung Manis, Mukah from a very small town with
assistance for small entrepreneurs in timber related
limited access to the outside world, into a new
business, may it be in terms of funding, financial
township having all the necessities and modern
assistance, technical assistance and services or
facilities that enables it to function as a booming
other relevant assistance i.e. marketing. To date,
industrial area in the central region of Sarawak.
STIDC Vendor Program has successfully assisted 45
Several on-going and future projects in Tanjung
vendors throughout Sarawak.
Manis are and will be to enhance the role of
14
Tanjung Manis as one of the important growth
Indeed, STIDC has traditionally upheld the socio-
nodes in the development corridor of Sarawak,
economic tenets underscored by a number of
which plays an important role in supporting the
projects lined up for the present as well as the
development of Sarawak’s economy. Examples of
future.
Industrial Planning
The roles of Industrial Planning are to plan,
processing industry were 9.7 million m3 and 10.5
monitor,
physical
million m3 respectively. Total production of primary
development of wood based industry in Sarawak.
products like plywood, sawn timber and veneer
These responsibilities are carried out through
were 3,444,400 m3, 1,432,489 m3 and 482,799 m3
involvement
macro
respectively. The wood based industry in Sarawak
planning for the industry, monitoring, reporting and
has been able to optimize utilization of wood
reviewing physical development, implementation
resource by processing mill residues into value-
of Timber Grading Regulations and Development
added products. Annual output of such products
of technical standards for timber products.
like fibreboard, particle board and wood chip
review
in
and
report
preparing
the
strategic
were 267,100 m3, 128,101 m3, and 341,474 m3,
Planning
respectively.
The wood based industry continues to be one of
Quality Control
the main manufacturing sectors contributing to
the social-economic development of Sarawak. In
As the Grading Authority for Sarawak, STIDC
an effort to sustain development, STIDC involved
is responsible for supervising timber grading
actively in committees preparing strategic plans
activities which are carried out by 446 competent
for the wood based industry in the Ninth Malaysia
timber graders. A total of 1,195,784 m3 of sawn
Plan (9MP), Industrial Master Plan III (IMP3) and
timber exported was checked and graded by
National Timber Industry Policy (NATIP).
STIDC in 2007. STIDC is also involved in the national
level committee to review the Malaysian Grading
Development policies that were implemented
Rules for Sawn Hardwood Timber.
have successfully been able to continuously
Industrial Standard
attract new investments in the timber industry.
In 2007, a total of 51 applications to regularize,
expand and develop new projects were received
and processed. Out of this total, 33 applications
were approved by the Industrial Coordination
Committee (ICC) with an investment capital
amounting to RM176.54 million and generating
almost 3000 employment opportunities.
Development
Increased consumer awareness on the importance
of safety and health factors in a particular product,
requires domestic producers to comply with
standards imposed by the consumer countries
i.e. the control of formaldehyde emissions from
wood panel products. STIDC’s active involvement
in
committees
to
develop
and
monitor
compliance directives for technical standards
at the international level served to ensure that
By the end of 2007, there were already about 822
its implementation would not become technical
wood based mills in Sarawak. The total annual
barriers to local producers penetrating global
installed and utilized capacities of the primary
markets. On 9th August 2007, STIDC organized
ANNUAL REPORT 2007
15
a briefing on the New Export Requirements of
fundamental requirement in planning, monitoring
Plywood to Taiwan in Bintulu by the Bureau of
and reporting on the physical development of
Standards,
(BSMI)
domestic timber industry. In 2007, an electronic
Taiwan. The briefing was to acquaint participants
information management system was developed
with the requirement on allowable formaldehyde
to manage systematically data pertaining to
emission level for plywood products exported to
wood based industry and grading activities
Taiwan effective 1st July 2007.
carried out by competent timber graders. The
Metrology
and
Inspection
system will be used by all STIDC offices throughout
Information Management
Accurate
and
updated
Sarawak.
information
is
the
Preventive & Enforcement
Preventive and enforcement activities carried
amongst others stringent control and inspection
out by STIDC are, to enforce the provisions under
at all Inspection Stations at Harwood Timber Sdn.
The
Bhd. depots at Sematan, Biawak, Tebedu, Batu
Sarawak
Timber
Industry
Development
Corporation Ordinance, 1973 and The Sarawak
Lintang and Lubok Antu.
Timber Industry (Registration) Regulations, 1999, to
control the import and export of timber and timber
Patrol and inspection activities were also intensified
products to ensure that those involved in these
along the Sarawak - Kalimantan border areas in an
activities comply with the relevant regulations
effort to combat any timber smuggling activities
and procedures. This is achieved through close
across the border. Among the agencies involved
monitoring and consistently carrying out preventive
in the patrol and inspection activities are Royal
and enforcement activities throughout the year.
Malaysian Police, Malaysian Armed Forces, Royal
Malaysian Custom, Land Transport Department,
Preventive and enforcement activities mainly
Marine Department, Immigration Department
focused on monitoring and controlling the entry
and Malaysian Maritime Enforcement Agency.
of timber and timber products from Indonesia in
an effort to curb smuggling of the timber products
STIDC has also held periodically discussions with
from the country into the state, an issue which has
timber importers in order to collect information
attracted a great deal of international attention.
and at the same time to increase the importers
The initiatives undertaken by STIDC in ensuring
awareness as well as reminding them of the
that
regulations and procedures that they have to
timber
and
timber
products
imported
from Indonesia are from legal sources include
16
comply with.
Registration & Licensing
In 2007, STIDC successfully identified and registered 78
and a number of briefings and discussions was also
new companies through Visit Customer Campaign,
held between the Forests Department and STIDC to
30 companies more than the yearly target of 48 (an
ensure a smooth and efficient handing over of the
increased of 62.5% as compared to the yearly target).
subject matter.
The overall number of registered companies in 2007
however shows a decrease of 47% or 170 companies
To enhance the service delivery system for the industry,
as compared to 322 companies registered in 2006.
plans are already in the pipeline to implement
E-Regnet (Electronic Registration Network) system,
In the preparations to take over the function of issuing
an online registration system that will facilitate an
mill license from the Forests Department on 1st July
efficient and effective registration process between
2008, amendments to “The Sarawak Timber Industry
STIDC Headquarters and its divisional offices which is
(Registration) Regulations, 2008” have been made
expected to be ready by early 2009.
Divisional Offices
As an agent of growth and a catalyst to Sarawak
timber industry, it is ultimately our responsibility to
- To monitor the development of the wood based
industry in their areas
ensure that the services we provide to our customers
- To implement sawn timber Grading Rules
are of the highest quality. These include ensuring the
- To implement the “Sarawak Timber Industry
smooth flow of our administrative activities throughout
(Registration) Regulations, 1999”
the divisions in Sarawak.
- To process and issue export licenses for wood
These are the roles played by STIDC divisional and
- To implement Furniture Vendor Development
products
liaison offices which have been strategically set up in
Sibu, Sarikei, Tanjung Manis, Mukah, Bintulu, Miri and
Limbang.
Programs
- To collect data on industry workforce and industrial
trainings for the wood based sector
- To monitor the progress of STIDC forest license
The main activities carried out by our offices at the
concessions
divisional level are:
ANNUAL REPORT 2007
17
Corporate Investments
STIDC’s corporate investments in 2007 were listed as follows:
Subsidiary companies
18
Nature of business:
Harwood Timber Sdn Bhd
Sale of logs, production and sale of sawn timber
STIDC Belian Holdings Sdn Bhd
Belian timber operator and sawmill
Hillog Sdn Bhd
Woodworking and related timber processing services
Tanjung Manis Shipping Sdn Bhd
Transportation and wharfing services, trading in
construction materials and construction works, renting
of speedboat and log ponds.
Tanjung Manis Sawmill Sdn Bhd
Trading in peat swamp logs and letting of sawmill, plant
and machinery.
Tanjung Manis Development Sdn Bhd
Project management services and construction works.
Tanjung Manis Furniture Sdn Bhd
Furniture production
Saratim Insurance Agency Services Sdn Bhd
Insurance agency
Tanjong Manis Realty Sdn Bhd
Marketing, managing and selling of houses at Sumber
Alam Sanctuary
Elmhurst Sdn Bhd
Landscaping, road construction and reforestation
works.
Tanjong Manis Moulding Ind. Sdn Bhd
Manufacturing wood plastic composite products
Tanjong Manis Resources Sdn Bhd
Manufacturing of woodchips
Hornbill Skyways Sdn Bhd
Aviation services
Teratim Sdn Bhd
Timber logging
Amra Timbers Sdn Bhd
Timber logging concession
Balamra Sdn Bhd
Kestrel Sdn Bhd
Tinamou Sdn Bhd
Associate companies
Nature of business:
Polima Compressed Wood Bintulu Sdn Bhd
(Formerly known as Tanjong Manis Corporation Sdn Bhd)
Production of compression moulded pallet
blocks and core plugs utilizing wood waste.
Houting Sdn Bhd
Bintulu Adhesives & Chemicals Sdn Bhd
Manufacturing and sale of glue and adhesives
Shin Yang Industries (Bintulu) Sdn Bhd
Extraction and marketing of timbers
PUSAKA KTS Forests Plantation Sdn Bhd
Palm oil plantation and reafforestation
Selah Timber Sdn Bhd
Shin Yang Plywood (Bintulu) Sdn Bhd
Manufacturing of decorative plywood and other
wood related products
Other companies
Nature of business:
Daiken Sarawak Sdn Bhd
Production of medium density fiberboard (MDF)
Kuching Hotels Sdn Bhd
Hotel and shopping complex
GOS Management Holding Sdn Bhd
Investment holding
Kion Ling Timber-Based Industries Bhd
Timber processing and trading
Sarawak Pulp Industries Sdn Bhd
Palm oil plantation
Keresa Timber Corporation Sdn Bhd
Extraction and sale of timber logs
ANNUAL REPORT 2007
19
STIDC ACTIVITIES IN 2007
Earth Breaking Ceremony of
Sumber Alam Sanctuary
Visit to STIDC Furniture Making Complex,
Kota Samarahan
International Seminar in Tokyo
Malaysian delegates at the 14th Conference on CITES, the
Hague, Netherlands
Exchange of the
e-permit agreement documents
20
SMIDEX “Annual Show
International Seminar
on Utilisation
and Marketing Of Acacias
Malaysian participants at the South East
Asian Technical Workshop, KL
Visit by
Batu
Asia - Pacific Tropical Fores
Raya Sale at STIDC Gallery
wcase”
STIDC vendors visit to EFE and MIFF 2007, Kuala Lumpur
y Timber Trade representatives to
u Bungah longhouse in Mulu
st Investment Forum
Smart Partnership Programme between STIDC
and Royal Custom Malaysia
Briefing by the speaker
from BSMI, Taiwan
Briefing on Taiwan’s requirement for plywood
Timber Selling Mission to India
Groundbreaking Ceremony for the proposed Central Oil Distribution Terminal
(CODT)
ANNUAL REPORT 2007
21
Sarawak Timber Industry Development Corporation
(Incorporated under the Sarawak State Ordinance No. 3 of 1973)
This page has been intentionally left blank
art II
IN NCI
ST T
NTS
Contents
oard
7
age
embers Officers and rofessional
Statement by Chairman and a oard
dvisors
1
ember
Statutory Declaration
uditors
3
eport
alance Sheets
Income Statements
Consolidated Statement of Changes in
Statement of Changes in
uity
7
uity
Cash low Statements
9
Notes to the inancial Statements
11
1
This page has been intentionally left blank
oard
embers Officers and rofessional
Chairman
ehin Sri
ai
bdul Taib
dvisors
ahmud
S S D S
S
SSD SS
SSS S T S D
D S
D N T. . (Thailand)
N (Indonesia)
S
( runei) O ( orea) O ( ustralia) CD
oard
embers
Dato Sri
N S
ai
wang Tengah
li
asan
N
hg. Tan Sri Datuk
S
D
(until 1
N S
ay
S
a i u ang bin
N
hmad Tarmi i bin
ay
a i Sulaiman
7)
hg. Tan Sri Datuk mar a i bdul
D
N
T
hg. Datu
D
S
Tuan
ohd. Nor
D ( mas)
7)
hg. Dato Sri
D S N S
(appointed
mar
S
C
i bin Dato
a i usain
S
an
lwi bin Dato Sri
T
N
an
ashim
D( angsa)
a i ulaihi bin
a i Narawi
S
hg. Datu Cheong k Choon
D
S
hg. rofessor Datuk Dr. usuf
N
eneral
anager
hg. Datu
D
ddress
uditor
ankers
D
S
adi
S
a i en Talif Salleh
D( )
isma Sumber
. O. o 19
etra aya
937
uching
uditor
eneral
lam
alaysia
alayan anking erhad
CI
ank erhad
ank erhad
NN
O T
7
1
Statement y Chairman
nd
oard
ember
e
I
IN S I
I
D T I
IN
D and
D TO S I
I
N T N
S N being the Chairman and a oard ember of S
TI
IND ST
D
O
NT CO O TION do hereby state on behalf of the embers that in our opinion
the financial statements as set out on pages to
are drawn up in accordance with
applicable rivate ntities eporting Standards in alaysia so as to give a true and fair
view of the state of affairs of the roup and of the Corporation as at 31 December
7
and of the results of their operations and the cash flows of the roup and of the Corporation
for the year ended on that date.
On behalf of the oard
IN S I
IN
D
Chairman
uching
I
D
On behalf of the oard
T I
alaysia
uching
Date
S
TI
IND ST
D TO S I
I
SS N
oard ember
Date
D
O
NT CO
O
TION
alaysia
N
T N
I
Statutory Declaration
I D T
I NT I S
being the officer primarily responsible for the accounting
records and financial management of S
TI
IND ST
D
O
NT
CO O TION do solemnly and sincerely declare that the financial statements as set out
on pages to
are to the best of my knowledge and belief correct and I make this
solemn declaration conscientiously believing the same to be true and by virtue of the
provisions of the Statutory Declarations ct 19 .
Subscribed and solemnly declared by
D T
I NT I S
at
C IN in the State of S
on this
day of
.....................................................
D T
I NT I S
efore me
.....................................................
S
S
NN
O T
7
3
Si il etua udit Negara
engenai enyata ewangan
erbadanan ema uan erusahaan ayu Sarawak
agi Tahun erakhir 31 Disember
7
alance Sheets
s at 31 December
7
Group
Note
Corporation
2007
2006
2007
2006
7
7
3 9 9
9
7
19 739
1 73
193
3
Non-current assets
roperty plant and e uipment
Investment in subsidiaries
Investment in associates
Other investments
ro ect development e penditure
roduct development costs
ong term loan receivables
Deferred ta assets
3
79
3 33
13 7
7
3
7
9 17
9
3
9
77
17 7
9 11
7 113 7
117 93
1
31
7 7
9
9 7
1
9 3
7
1 39 9 7
9 93 9
7 9 1
71 1
3
9 319
3 73 79
93 9 3 333
39 7 3 979
9 997
3 7
3
97 9
39
3 1
3
1
77 793
3
71
19
77
Current Assets
Inventories
Trade receivables
Other receivables
Cash and bank balances
1
11
1
13
3
97
3
3 7 1 3
1
7 91
37 9
33
1
3
9
3 3
717
399 9
1
Current Liabilities
Short term borrowings
Trade payables
Other payables
Ta payable
1
1
Net Current Assets
9 3 3 99
33 7
9
1 379 771
11
1 1
11
911
7
37 77
7
9
1
1
79
7 9 1
319 9 3 1
71 1
1 79
3 1 3
7 13 3 1
939
9
71 9
13
1
9
77 7 3 91
7 9
11 3
1
1
1
1
3
1
3 91
3
11
1
9
37
Financed by:
overnment s contribution
Donated funds
evolving funds
Capital reserve
etained profits
Corporation accumulated funds
inority interests
overnment grants
ong term borrowings
Deferred ta liabilities
Non current liabilities
1
17
1
19
1
939
3 3
93
13
3 1 7 33
33 1 73
91 99
1 93 7
1
7
7 91 3 3
3 7 1 39
1 9
11
911
1
7
7
3 7 9
9 9 997
1
11
939
3 3
939
9
71 9
93
1 91
3
1
3 7 3
9
99 3
3
9
7
191 7
1
99 3
7
1 99
1
1
7
1
7
71 1
1
7 13
3
3 1
The accompanying notes form an integral part of the financial statements.
NN
O T
7
Income Statements
or the ear nded 31 December
7
Group
Note
evenue
Cost of sales
ross profit
dministrative and other
operating e penditure
rofit from operations
inance costs
Share of results of associates
rofit before ta ation
1
3
9
(111 97
)
11 7
(
3
Ta ation
Corporation and subsidiaries
ssociates
rofit after ta ation
inority interests
Net profit for the year
Corporation
2007
13 39 )
7 1
( 1 93 )
1 3
97
1
(11 1 71)
(9 3 9 )
(1 79 9 1)
9 13 1
( 31 77 )
7 9 7 1
2006
1
(1
7
1
9
(
S
TI
IND ST
D
O
NT CO
O
TION
39
9 )
3
17 7 7)
3
9 7
( 3 9 3)
1 31 1
971 13
(7 3 991)
( 7 99)
( 91 9 )
3
71
( 9 3 7 3)
33
2007
(
(
2006
3 7 3
9 733)
17
)
3 73 17
(3 77 77)
7 93
7 93
(37 9 79)
1 9 9
(3 71 39 )
31 9 9
( 73
( 73
7 3
)
)
(
(
7 )
7 )
9 33
177 79
9 33
177 79
Consolidated Statement of Changes in
Government’s
contribution
At 1 January 2006
eceived during the year
pended during the year
At 31 December 2006
At 31 December 2007
1
139
Donated
funds
Revolving
funds
9
7
9
(13
1
939
3 3
Capital
reserve
Retained
profits
13
7
9 11
1
(
1 939
1
uity
7
Total
73
3
1
(
1)
33
77 7 3 91
1 13 9
(13
)
7 9 7 1
33 1 73
7
1)
71 9
13 9
13
1
33
9
)
93
13
7 9 7 1
3 1 7 33
NN
O T
7
7
Statement of Changes in
uity
Government’s
contribution
At 1 January 2006
At 31 December 2006
At 31 December 2007
S
TI
IND ST
D
O
NT CO
1
139
Donated
funds
Revolving
funds
9
1
(
9
(13
1
O
TION
939
3 3
Retained
profits
7 7 3
7
1 939
1
7
Total
7
31
1
(
1)
177 79
9
99 3
1 13 9
(13
)
9 33
3
1
7
1)
71 9
13 9
177 79
3 7 3
)
93
9 33
1 91
Cash low Statements
7
Group
2007
Corporation
2007
2006
2006
Cash Flows from Operating Activities
rofit before ta ation
d ustments for
morti ation of product development costs
ad debts written off
Creditors written off
Doubtful debts recovered
rovision for doubtful debts
eversal of impairment losses on property
plant and e uipment
Impairment losses on investments
Inventories written off
Impairment losses on investments write back
Negative goodwill recognised
Depreciation of property plant and
e uipment
ain on disposal dilution of subsidiaries
( ain) loss on disposal of property plant
and e uipment
( ain) loss on disposal of other investments
roperty plant and e uipment written off
Interest e pense
Interest income
ross dividend
Share of results in associates
Operating profit (loss) before working
capital changes
97
971 13
9 11
(1
9)
(1
31)
9 171
3
139
9
7
7
1
17
(3 7)
9)
1 7 33
( 7
)
1)
)
3
7
(1 3 31 )
( 7 9 9)
(1 3
)
(
7 3
13
31
1
191
(
31 9 9
(1 773
933
39 71 1
(Increase) decrease in inventories
(Increase) decrease in receivables
Increase (decrease) in payables
Cash generated from (used in) operations
(3
)
(13 1 7)
1 31 91
3 1 1
Interest paid
Ta es paid
Ta es refunded
Net cash generated from (used in)
operating activities
(
7 )
(1 3 3 191)
13 93
3
19 73 739
( 7 )
(1 971
)
(
9 )
33
3
3
(11 9
)
(
7 )
(1 31 1)
7 19 11
1
(3
3 )
( 1
)
13 3
( 3
(13
7
99
3)
3 )
11
7
39 3
9
19 )
(33 33)
1 11 37
3 77 77
(9 99
)
(11
7 )
3 71 39
(1 1 9 3)
(9 91 7 )
(
3
7
1
9
(3 1 3 9)
(1 13 73 )
9 3
3
31 9
39 1 777
3 93 7 7
( 7
3)
( 7 9
)
(3 77 77)
(7 917
)
(3 71 39 )
(7 917
)
7 713
(1 937
NN
3)
O T
7
9

Part I - Sarawak Timber Industry Development Corporation

Transcription

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