Johari speaks to the STA delegation during the meeting.
KUCHING (March 25): Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani has pledged to bring up Sarawak Timber Association’s (STA) request to extend the carry forward of unabsorbed business losses (UBL) period from the current 10 years to 20 years to the federal cabinet for action.
STA chief executive officer Annie Ting said in this regard, the minister requested the association to provide data on the types of timber species requiring longer period for the carry forward of unabsorbed business losses.
She said this was one of four issues highlighted when an STA delegation paid a courtesy call on Johari at his office in Putrajaya today.
Johari (fifth right) with (from left) Chan, Adeline, Diana, Yii, Chia, Wong, Ting, Yek (right) and others pose during a photocall.
“STA had earlier extended its request to extend the time limit from the current 10 years to 20 years for the carry forward of unabsorbed business losses to then Finance Minister II Steven Sim during a dialogue on Budget 2024.
“Although he mentioned a longer period of up to 20 years will be granted on a case-by-case basis including those that operate in the forest plantation industry, we did not receive any official response from the Finance Ministry and thus requested Johari to help follow up on the matter,” said Ting.
According to her, it takes a longer time for forest plantations to mature and industry players would require a certain period of time to carry forward unabsorbed business losses.
Ting said other issues discussed during the meeting with Johari, which lasted over an hour, were the implementation of Sustainable Forest Management (SFM) and certification issues.
She said STA members are committed to SFM, adhering to the pledge of upholding over 50 per cent of its land area under forest and tree cover besides actively pursuing Forest Management Certification.
Despite these efforts, she regretted that the timber industry continues to face unwarranted criticism from non-governmental organisations on issues such as human rights, indigenous people’s welfare, and environmental concerns.
Given this, she hoped Johari’s ministry would intensify efforts in promoting the Malaysian Timber Certification Scheme, enhance public awareness of SFM, and foster acceptance of this national scheme.
Ting said the meeting also touched on the issue of compliance with international trade laws for the timber industry, and hoped the government would work closely with industry players in keeping abreast with the latest legislations to better understand their implications to the industry.
She said Johari was also informed of their plywood market share in Korea having shrunk considerably due to the anti-dumping duties imposed on plywood.
“To this, the minister suggested STA provide relevant data to prove that Malaysian industry players did not dump plywood into the Korean market, so that his ministry can intervene by having a dialogue with Korea to mitigate the problem.”
Ting also commended Johari for his commitment to render support for the sustainable development of Sarawak’s timber industry.
The STA delegation comprised honorary secretary Wong Ting Chung; Forest Plantation and Committee chairman Joseph Lau; Furniture and Other Woodworking Committee chairman Yek Siew Liong; Samling Group of Companies chief executive officer Lawrence Chia; Shin Yang Group of Companies chief finance officer Alvin Yii; STA council members Adeline Lau and Diana Lau; and manager Jaime Chan.