Sarawak Cuts Timber Charges by 50% to Cushion Costs and Reinforce Industry Competitiveness
KUCHING, April 16 – Sarawak has introduced a 50 per cent reduction in timber royalties and selected statutory charges to ease operational pressures and strengthen the competitiveness of its forestry sector.
The Sarawak Forest Department said the measure applies to Forest Timber Licences (FTL) and Forest Plantation Licences (LPF), excluding specific tariff categories.
Cost Cushioning Measure
The policy aims to support companies facing rising costs driven by fuel prices, supply chain disruptions and global market uncertainties.
Under Abang Johari Tun Openg, the state is focusing on maintaining industry resilience.
Near-Term Implementation
The reduction will be implemented within two weeks and remain in effect for one year, subject to review.
Rebalancing Market Dynamics
Higher export margins had previously shifted focus away from domestic processing.
The new measure is expected to encourage local processing and rebalance the timber value chain.
Stable Production Outlook
Timber output is projected to remain steady at around 1.73 million cubic metres annually, indicating improved industry confidence.
Sustainability Still Central
Sarawak reaffirmed its environmental commitments, with over 57 million trees planted since 2021 as part of forest restoration efforts.
Future-Focused Industry Strategy
The state is also advancing forest plantations and promoting renewable energy initiatives such as wood pellets, biochar and waste-to-energy solutions.
-wilayah.com.my
