KUCHING, April 15 — The Sarawak government has approved a 50 per cent reduction in royalty rates and selected statutory charges for natural forest timber under all Forest Timber...
KUCHING, April 15 — The Sarawak government has approved a 50 per cent reduction in royalty rates and selected statutory charges for natural forest timber under all Forest Timber Licences and Forest Plantation Licences , as part of a temporary measure to support the forestry and timber industry.
In a statement today, the Sarawak Forest Department said the reduction excludes the Timber Industry Tariff H0272502 and will be implemented within two weeks to allow for system updates.
According to SFD, the initiative reflects the state government’s commitment under the leadership of Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg to support an industry facing rising fuel prices, global market uncertainties, supply chain disruptions and increasing operational costs. “The reduction aims to provide immediate cost relief, improve operational viability, stabilise profit margins, strengthen domestic timber processing and ensure continued industry participation and supply stability,” it said.
SFD noted that current trends show rising costs have led to a shift towards export-oriented production due to higher margins, while domestic processing activities have declined. As such, the measure is expected to help rebalance the sector by enhancing the competitiveness of local processing and strengthening the overall timber value chain. The department added that timber production is projected to stabilise at around 1.73 million cubic metres annually, reflecting improved industry confidence.
At the same time, SFD emphasised that Sarawak remains committed to forest restoration and environmental sustainability through initiatives such as the Sarawak Greening Campaign and Forest Landscape Restoration . It revealed that more than 57 million trees have been planted across the state between 2021 and 2025, marking the highest tree-planting achievement in Malaysia. “These efforts contribute to restoring degraded forest landscapes, conserving biodiversity, enhancing carbon sequestration, protecting water catchment areas and ensuring the long-term sustainability of forest resources,” it said.
SFD added that the state is also intensifying the development of large-scale forest plantations to reduce reliance on natural forest timber, while supporting renewable energy production through wood pellets and biochar. In addition, the government is promoting a ‘waste-to-energy’ approach by converting wood waste and by-products into valuable energy sources, improving resource efficiency and creating new economic opportunities.
Despite the targeted support measures, the state government remains committed to sustainable forest management and responsible resource use. The statement quoted Abang Johari as saying that the decision reflects a pragmatic and responsive approach to current economic challenges, while ensuring the forestry sector remains resilient, competitive and sustainable for the future.
— The Borneo Post
Abang Johari Timber Industry Tariff Forest Timber Licences Sarawak Greening Campaign Forest Landscape Restoration
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