The Sabah Timber Industries Association says 120 containers, with timber products worth between RM9 million and RM10 million, are stuck in ports and at various factory locations.
The STIA also estimates there are 120 containers, with timber products worth between RM9 million and RM10 million, stuck at ports and at various factory locations.“We expect, overall, these felled logs would have lost at least 15% to 20% of their inherent value. Certain non-durable species have lost nearly all its commercial value by now,” he said in a statement here today.In addition to this, Chua said downstream mills are now faced with the critical problem of wood adhesives expiring.
“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,” he said. Meanwhile, Chua said the economic impact of losing four weeks of productivity from March to April will have far-reaching consequences on the forest and timber industry, and potentially more if the MCO is extended beyond Apr 14.“Shipment of ready goods, controlled movement of perishable raw materials and systematic re-starting of manufacturing will go a long way in improving the industry’s ability to maintain and pay its workforce.
“STIA feels that it is neccessary for the Sabah government to consider making minor changes to during this MCO period. This will at least allow the industry to help itself in the interim. Due to the inherent remote location of timber factories and logging camps, most companies have at least 40% of its workforce residing in living quarters within factory premises or logging camps.
Hard hit timber industry? Haha....