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Corporate Vision 1 - sarawaktimber.org.my · Corporate Vision 1 Corporate Mission 1 ... Corporate Vision STIDC as the leader and catalyst of the timber industry ... Tanjung Manis

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Page 1: Corporate Vision 1 - sarawaktimber.org.my · Corporate Vision 1 Corporate Mission 1 ... Corporate Vision STIDC as the leader and catalyst of the timber industry ... Tanjung Manis
Page 2: Corporate Vision 1 - sarawaktimber.org.my · Corporate Vision 1 Corporate Mission 1 ... Corporate Vision STIDC as the leader and catalyst of the timber industry ... Tanjung Manis

Part 1

Corporate Vision 1

Corporate Mission 1

Corporate Functions 1

Board of Management 2

Management Team 3

Corporate Structure 5

Message From The Chairman 7

Main Corporate Activities 9

Resource Development Division 10

Industrial Planning Division 11

Project Development Division 12

Contents

Trade Development Division 13

Domestic Trade Division 15

Registration & Licensing Division 16

Preventive & Enforcement Division 17

Northern & Central Regions 18

Corporate Investment 19

Activities in 2009 21

Part II

Financial Statements 1

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Part 1

Corporate Vision

STIDC as the leader and catalyst of the timber industry

Corporate Mission

STIDC plays its roles in planning, co-ordinating and developing the timber industry in Sarawak

towards optimum utilization of forest resources by encouraging downstream processing and product

diversification. In line with these objectives and the National Vision 2020, STIDC is committed to the

development of disciplined, skilled and capable human resources.

Corporate Functions

• To control and co-ordinate the manufacturing standards as well as trade practices of the timber

industry;

• To recommend to the Government on the methods, measures and policies to be adopted to

enhance the timber industry, and where approved by the Governor-in-Council, to implement and

assist in the implementation of the same;

• To encourage effective utilization of timber with emphasis on product diversification and quality

control;

• To promote, stimulate and facilitate the development of 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;

• To provide technical advisory services in order to enhance the existing timber industry and

to establish new industry; and

• To provide training in various aspects of logging activities in relation to timber processing, sawmilling,

sales and marketing of timber and timber products.

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The Honourable Datuk Amar Haji Awang

Tengah Ali Hassan

(Chairman)

Minister of Planning and Resource

Management II and

Minister of Public Utilities

Tan Sri Datuk Amar (Dr.) Haji Abdul Aziz bin

Dato Haji Husain

Chairman of Pusat Pembangunan

Kemahiran Sarawak

Dato Sri Ahmad Tarmizi bin Haji Sulaiman

State Financial Secretary

The Honourable Tuan Haji Julaihi

Haji Narawi

Chairman of

Lingkaran Jaya Sendirian Berhad

Datuk Dr Yusuf Hadi

Lecturer

Faculty of Resource Science and Technology,

UNIMAS

Datu Wan Alwi bin Dato’ Sri Wan Hashim

Permanent Secretary of Ministry

of Planning and Resource

Management

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Datu Haji Len Talif Salleh B.Sc (Forestry), The Australian National University, Australia

General Manager

Mdm. Dayang Nena Abang BruceMaster (Business Administration), Heriot-Watt University, UK

B. Econ. (Hons), University of Malaya

Diploma in Marketing, Chartered Institute of Marketing, UK

Senior Assistant General Manager (Trade Development)

MANAgEMENT TEAM

Haji Hashim Haji BojetMaster in Corporate Business Administration, CMM/Ohio University, USA

BBA (Hons), University Kebangsaan Malaysia

Deputy General Manager

Ms. Haluyah AwiBachelor of Law (LL.B) (Hons), Universiti Institut Teknologi MARA

Diploma in Laws, Universiti Institut Teknologi MARA

Senior Assistant General Manager (Administration)

Mdm. Catherine Sng Bee SeioB.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)

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Mr. Edmund Daging MangkuB.Sc. (Forestry), Universiti Pertanian Malaysia

Assistant General Manager (Resource Development)

Mr. Mohd Hinri AbdullahDiploma Pengurusan Pemasaran & Pengedaran Fizikal,

Institut Pengajian Sains Pengurusan Delft, the Netherlands

Diploma in Public Administration, Universiti Institut Teknologi MARA

Assistant General Manager (Preventive & Enforcement)

Mr. Tagat JimbatB.Sc. (Forestry), Universiti Pertanian Malaysia

Assistant General Manager (Domestic Trade)

Mr. Paul Lau Ngie HungB.Sc. (Forestry), Universiti Pertanian Malaysia

Acting Regional Manager (Central Region)

Mr. Jerry Mawan LadingB.Sc. (Forestry), Universiti Pertanian Malaysia

Acting Regional Manager (Northern Region)

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Deputy general Manager

Registration &

Licensing Division• Registration & Licensing

Industrial Planning

Division• Industrial Planning

• Quality Control

• Industrial Standard

Project Development

Division• Technical Services

• Entrepreneurial Development

• Projects

Resource Development

Division• Planted Forest Resources

• Natural Forest Resources

• Industrial Training

Central Region Offices• Sibu

• Tanjung Manis

• Sarikei (Liaison Offices)

• Mukah (Liaison Office)

Corporate Affairs Section

Corporate Structure

general Manager

Board of Management

Ministry of Planning and

Resource Management

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Trade Development

Division• Trade Development

• Publications

Domestic Trade

Division• Domestic Trade

Preventive &

Enforcement

Division• Preventive &

Enforcement

Administration Division• Human Resource

Management

• Human Resource

Development

• Information & Communication

Technology

• General Services

• Building Maintenance

• Security

Finance &

Investment Division• Finance

• Investment

Internal Audit Section Legal and Secretarial

Section

Northern Region Offices• Bintulu

• Miri

• Limbang (Liaison Office)

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MESSAgE FROM THE CHAIRMAN OF STIDC

BOARD OF MANAgEMENT

Assalammualaikum Warahmaatullahi

Wabarakatuh dan salam 1Malaysia.

On behalf of STIDC Board of Management, it is

my great pleasure to present this Annual Report

and Financial Statement for the year ended 31st.

December 2009.

The global economic downturn in 2009 had

posed challenges to business sectors including

the timber industry. In Sarawak, the value of

timber and timber products exported in 2009

dropped by 16% to RM6.7 billion compared

with RM8 billion in 2008.

Similarly, in 2009 the timber sector also

experienced a decline in export volume for

sawn timber (26%), plywood (24%), veneer

(35%), dowels (28%), mouldings (9%), particle-

board (57%), block-board (40%) and laminated-

board (45%). However, growth in terms of value

was recorded for logs (6%), medium density

fiberboard (10%), woodchips (0.4%) and other

timber products (44%).

Meanwhile, the values of major timber products

such as plywood, logs and sawn-timber were

RM3.4 billion, RM1.8 billion and RM 0.7 billion

respectively. These represented 50%, 27% and

11% of the total revenue earned from the ex-

port of timber and timber products in 2009.

Albeit the challenges, STIDC continued to play

its role as the leader and catalyst of Sarawak’s

timber industry and involved actively in major

events in meeting the needs of the industry.

Taking advantage of the vast potential in the

international markets, STIDC participated in both

the Malaysian International Furniture Fair and

Export Furniture Exhibition in Kuala Lumpur on

3rd-8th March 2009. This was followed by a visit

to the 23rd China International Furniture Fair in

Guangzhou on 20th -25th March 2009. Besides

the aim to keep abreast with the current trends

in furniture designing and to explore market

opportunities, the involvement in these events

also manifested its efforts in helping the industry

particularly in time of difficulty.

Committed to addressing the pertinent global

issues and to ensuring good governance in

Sarawak’s timber industry, STIDC maintained

close rapport with its international counterparts.

A familiarization visit to Sarawak was co-

ordinated for the European Union timber trade

representatives from 9th-12th July 2009. The visit

among others aimed at giving first hand

information on Sarawak’s forestry and timber

sectors.

Meanwhile, the Corporation continued to

diversify its role in tandem with the State

Government’s aspiration to develop Tanjung

Manis Halal Hub by providing the infrastructure.

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The 77,000 hectares halal hub is poised to lure

at least RM9 billion worth of investments and

create not less than 10,000 employment

opportunities besides other spin-off benefits

like service related businesses. Hence, the

development of this hub will surely bring

significant positive impacts and improve the

socio-economic well-being of the people in this

area and Sarawak as a whole. This augurs well

with the increasing demand for halal products

from both Muslim and non-Muslim markets

globally.

The availability of communication and transport

network in this township as well as the

development of Tanjung Manis Halal Park is in

line with the government’s objective to make

Tanjung Manis the country’s halal hub of

choice. Besides promoting the use of green

technology and renewable energy, this Halal

Park emphasizes on bio-technology and

continuous Research and Development

particularly in aquaculture. This will pave the way

for more local and foreign direct investments.

This halal hub will support among others,

the aquaculture, poultry and egg production,

livestock and meat production, fruit gardens,

animal feed mills, eel farming industry as well as

chlorella plant and tilapia hatchery. Undoubtedly,

this will help to boost the development of the

neighbouring areas.

Through these efforts the Corporation hoped to

forge ahead in leading and catalyzing the industry

taking advantage of a more optimistic outlook

following the improvement of the global

economy.

Last but not least, I wish to express my sincere

appreciation to all the Board of Management,

relevant government departments and agencies,

industry players as well as the management and

staff of STIDC for their continuous commitment

and dedication in ensuring the success of this

report.

THE HONOURABLE DATUK AMAR HAJI AWANg TENgAH ALI HASSAN

Minister of Planning and Resource Management II

Minister of Public Utilities

Chairman of STIDC Board of Management

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MAIN CORPORATE ACTIVITIES

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Resource Development Division was

entrusted to facilitate the growth of the

timber industry by ensuring sufficient supply of

raw materials and availability of human capital.

Towards that end, various activities were carried

out in 2009 such as monitoring the

implementation of log quota policy and

conducting skill-based industrial trainings.

Additionally, this division had also carried out

other activities such as the implementation of

Ramin Export Quota, processing of log import

application, issuing of sustainable forest

management and legality statement certificate,

updating the logging progress of STIDC timber

licensed area, monitoring the planting progress of

STIDC license for planted forest and providing

technical input to technical committee for

recruitment of foreign workers.

Throughout 2009, about 4.15 million cubic

metres or 62% of the log production were

allocated for local processing compared with 7.12

million cubic metres or 82% in the previous year.

The decrease was attributed to the global

economic recession.

At the same time, STIDC was tasked to distribute

and monitor the export of Ramin timber

products in which Sarawak was allocated with a

quota of 3, 178 cubic metres compared with

6,110 cubic metres (including 2007 stocks) in

2008. 93% of the allocated quota was exported

in 2009. Ramin export quota was imposed in

accordance with CITES in order to protect this

species from possible extinction.

To complement the supply of local raw materials

importation of logs is permitted with the

approval of the Ministry of Planning and Resource

Management of Sarawak.

Another important task undertaken by Resource

Development Division was capacity building to

cater for the needs of human capital in the timber

industry. 61 youth were trained in 2009 to

acquire necessary skill in furniture making, wood

carving and timber grading. Efforts were also

made to organize customized training for the

industry. In addition, this Division continued to

provide technical input to the technical

committee responsible for the employment and

recruitment of foreign workers. Its involvement

in this committee is crucial in ensuring continuous

supply of workers for the timber industry.

RESOURCE DEVELOPMENTDIVISION

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INDUSTRIAL P L A N N I N g D I V I S I O N

Sarawak exported 2.66 million cubic metres

of plywood or 66.67% out of 3.9 million

cubic metres of the national export volume

in 2009.

The Industrial Planning Division continued to

play its important roles in planning,

monitoring, reviewing and reporting the overall

development of wood-based industry in Sarawak.

These roles were realised by monitoring the

progress of strategic macro plans for the industry

such as the Ninth Malaysia Plan, Industrial Master

Plan III, National Timber Industry Policy and

Sarawak Corridor of Renewable Energy. Other

key activities included the implementation of

Timber Grading Regulations, development of

technical standards for timber products,

management of timber production data and

evaluation of timber based mill layout plans.

The timber industry remained as the key

manufacturing sector in Sarawak. By the end of

2009, there were approximately 841 wood-based

mills in Sarawak. The total annual installed and

utilized capacities of the primary processing

industry were 11.2 million cubic metres and 8.3

million cubic metres respectively. Total production

of primary products like plywood, sawn timber

and veneer were 2.764 million cubic metres,

1.066 million cubic metres and 674,383 cubic

metres respectively. The wood-based industry in

Sarawak continued to optimize the utilization of

wood resources by processing mill residues to

produce value-added products. The annual

output of products such as fiberboard, particle

board and woodchips were 237,923 cubic

metres, 133,413 cubic metres, and 203,326

metric tones respectively.

In 2009, STIDC had successfully inspected 158

mills to ensure that machinery installed is in

accordance with the approved layout plan used

for mill registration.

STIDC being the Grading Authority for Sarawak

is responsible to supervise timber grading

activities carried out by 376 competent timber

graders. A total of 844,061 cubic metres of sawn

timber exported was checked and graded by

STIDC in 2009. The application for grading

activities and certificates were done on-line by

the industry.

Greater awareness among the consumers on the

importance of safety and health on particular

products required domestic producers to comply

with standards imposed by the consumer

countries such as the control of formaldehyde

emissions from wood panel products. STIDC also

involved actively in committees to develop and

monitor compliance directives for technical

standards at both national and international levels

to ensure that its implementation would not be-

come barriers to local producers penetrating the

global markets.

During the Timber Industry Update on the 20th

July 2009, the industry was briefed on the revision

to California Air Resources Board (CARB)

requirements for formaldehyde emission control

for wood composite products. The briefing

aimed to inform the participants on the revised

requirements on the allowable formaldehyde

emission level for wood composite products

exported to California, USA effective 1st January

2010. At the same time the industry was also

briefed on the impact of global economic crisis

on the timber industry in Sarawak.

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Project Development Division continued to play

its role in managing project developments

undertaken by STIDC.

Its involvement in project developments particularly

in Tanjung Manis Halal Hub reflected the diversifica-

tion of STIDC role into other fields. With emphasis

on green technology, this project aimed to tap new

investment opportunities as well as to promote

Tanjung Manis under Sarawak Corridor of Renewable

Energy (SCORE). It was also in consonance with the

government’s aspiration to make Tanjung Manis the

Halal Hub of choice in Malaysia.

Tanjung Manis which was identified as one of the five

new growth nodes under SCORE offers new

investment opportunities with the launching of the

country’s largest halal hub there. Witnessed by the

former Prime Minister, Tun Datuk Patinggi Abdullah

Haji Ahmad Badawi, the Memorandum of

Understanding for the lease and permit to enter the

project site of the halal hub was signed on 18th

February 2009.

With over 77,000 hectares earmarked for this

project, Tanjung Manis Halal Hub is poised to become

one of the most scientifically and environmentally

advanced halal hubs in the world with the

incorporation of state-of-the-art technologies,

renewable energies and sustainable practices.

Project Development Division also played its role in

co-ordinating maintenance work in Tanjung Manis

New Township including the Tanjung Manis Airport

besides ensuring the success of STIDC Vendor

Development Programme. In 2009, there were 53

vendors registered under this programme in which

STIDC helped by providing advisory services partic-

ularly on 5S practices as well as on productivity and

quality concepts in their workplaces. STIDC also

helped in co-coordinating other activities such as ex-

posure programmers, exhibitions, expositions as well

as seminars in realizing its objective to create resilient

Bumiputera furniture entrepreneurs.

PROJECT DEVELOPMENT DIVISION

Tanjung Manis Halal Hub masterplan

Prime Minister (3rd. left) together with The Right Honourable Pehin Sri Haji

Abdul Taib Mahmud, Chief Minister of Sarawak (4th. left) and The Honourable

Datuk Amar Haji Awang Tengah Ali Hassan, Second Minister of Planning and

Resource Management cum Minister of Public Utilities and STIDC Chairman

(2nd. left) launching the Tanjung Manis Halal Hub while The Honourable Datuk

Patinggi Tan Sri Alfred Jabu anak Numpang, Deputy Chief Minister (6th. left),

Datu Haji Len (left) and other VIPs look on.

STIDC General Manager, Datu Haji Len Talif Salleh (centre) briefing the

Prime Minister, The Right Honourable Datuk Patinggi Abdullah Haji

Ahmad Badawi (2nd. left) on Tanjung Manis Halal Hub Masterplan.

The Right Honourable Chief Minister of Sarawak, Pehin Sri

Haji Abdul Taib Mahmud (6th. left) signing the plaque to

launch the Tanjung Manis Halal Park - Parcel 1

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The timber sector experienced its most

challenging period in 2009 as the global

economic depression underpinned the overall

export of timber and timber products from the

State. STIDC, as the lead agency in the

development of the timber industry in Sarawak

had played proactive role at enhancing the

competitiveness of the industry through its annual

programs such as promotion and timber selling

mission, timber industry updates, public relations

and involvement in national, regional and

international forums.

Through the timber industry updates STIDC

continued to share and disseminate the latest

information on pertinent issues affecting the

industry. Among the topics and issues discussed

were “Impact of Global Economic Downturn on

the Timber Industry”, “US Lacey Act” and “EU

Legislation on Trade and Legal Timber”.

Committed to assisting the local industry players

in promoting their products STIDC had also

participated in the Malaysian International

Furniture Fairs (MIFF) and Export Furniture

Exhibition (EFE) in Kuala Lumpur. These annual

exhibitions had assisted the local manufacturers

and Bumiputera vendors in promoting their

furniture and enhancing networking as well as

gaining greater exposure in the international

market. Besides, STIDC had also organized a visit

to the 23rd. China International Furniture Fairs

(CIFF) in Guangzhou, China to update and

expose the participants on the latest furniture

designing and manufacturing technology besides

establishing business networking with their

counterparts in China.

In addition, STIDC also participated in the

International Wood Product Association (IWPA)

Annual Convention in California to keep abreast

with the latest issues affecting timber trade and

industry. The convention focused on issues such

as California Air Resource Board (CARB)

regulations revision and enforcement, Lacey Act

compliance and on-line Importer Security Filing

requirements.

TRADE DEVELOPMENT DIVISION

STIDC Official attending to the visitors at EFE.

EU Timber Trade Representatives familiarization visit

to Sarawak

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Negotiations on Forest Law Enforcement,

Governance and Trade (FLEGT) Voluntary

Partnership Agreement (VPA) were continued.

These were in support of the international efforts

to combat illegal logging and its associated trade.

STIDC participation and involvement in these

negotiations were to safeguard the interest of the

State and the industry in general. Sarawak is

committed to produce and trade in legally

harvested timber and does not condone illegal

logging and its associated trade which could

jeopardize the development of the industry and

government’s efforts in promoting legally

produced timber.

To further enhance its commitment, STIDC had

participated in national and international forums

to ensure that the international community is well

informed on government’s efforts and initiatives

in mitigating issues and misconception related to

the forestry sector.

STIDC also received local and foreign visitors

who were interested in acquiring first hand

information on forestry and timber sectors in the

State. Amongst the foreign visitors received were

from Guangdong Academy of Forestry, China. As

an annual programme, STIDC in collaboration

with the Malaysian Timber Council (MTC) had

also organized familiarization visit for the

European trade representatives to Sarawak which

saw ten representatives from various trade

associations and media groups in Europe. This

international public relations campaign

programme was an important platform to

portray our commitments and transparency in

managing our forests as well as in providing the

delegates with an insight on trade and forestry

sector in the State.

STIDC will ensure continuous efforts to promote

and develop the timber trade besides

enhancing competitiveness of the local industry

through concerted efforts and involvement of all

related stakeholders.

The 23rd China International Furniture Fairs (CIFF) in Guangzhou, China.

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DOMESTIC TRADE DIVISION

Domestic Trade Division had achieved its

objectives for 2009 in line with the Key

Performance Indicators and ISO 9001: 2008

Quality Policy in delivering the services of issuing

Export and Import licenses for timber and timber

products in Sarawak.

In 2009, the number of Export Licenses issued

dropped by 7% to 25,000 compared with 27,000

issued in 2008. The number of Import Licenses

issued also dropped by 31% to 48 in 2009

compared with 70 issued in 2008.

Meanwhile, the export volume decreased by

7.5% to 7.8 million cubic metres in 2009

compared with 8.4 million cubic metres in 2008.

This was due to the impact of the global

economic slowdown which had adversely

affected the market demands.

In enhancing efficiency and transparency,

procedures for issuance of Export and Import

licenses were certified under ISO 9001:2008 in

January 2009. The procedures were adopted

successfully in the headquarters as well as in

divisional offices. Subsequently, 96% of the

customers commended the procedures which

were implemented through e-Permit

system.

Processing of License for export and

import of timber and timber products.

Mr. Tagat Jimbat, Assistant General Manager of Domestic Trade Division ( middle) together

with Sabah State Officials in conjunction with their visit to STIDC on 26th March 2009 to observe the e-Permit System.

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Company registration campaign in progress.

REgISTRATION&LICENSINg

D I V I S I O N

Throughout 2009, Registration and Licensing

Division continued to play its active role in

registering the timber companies in Sarawak albeit the

gloomy global economy.

The global economic uncertainties had resulted in the

decline of the timber companies’ registration

applications by 5% to 1,877 in 2009 compared with

1,972 applications received in 2008. Revenue earned

from companies registration had also dropped by 27%

in 2009.

Meanwhile, the approved manufacturing license

applications decreased to 23 compared with 32 in the

previous year. Similarly, the number of new

investments approved in 2009 had declined by 17% to

10 investments from 12 investments in 2008. The value

of domestic investment in the timber sector had also

slipped to RM18.3 million in 2009 compared with RM

70.4 million in 2008. Subsequently, employment op-

portunities also dropped by 34% as a result of weaker

investments. However, the value of foreign

investments grew significantly to RM7.4 million in 2009

compared with RM1.9 million in 2008.

As a whole, the global economic downturn in 2009

had adversely affected the registration and licensing

activities. These were reflected by the marked decline

in terms of companies’ registrations as well as

investments in the timber fraternity.

Mill inspection by Registration and Licensing staff

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PREVENTIVE & ENFORCEMENT

DIVISION

The implementation and enforcement of

policy, regulations and procedures which

regulate the activities of Sarawak timber industry

under the STIDC jurisdictions were made

through the provisions under The Sarawak Timber

Industry Development Corporation Ordinance,

1973 and The Sarawak Timber Industry (Registration)

regulations, 2008 and The Timber Grading

regulations, 2008. The authority provided under

the Ordinance and regulations enable STIDC to

undertake preventive and enforcement activities

to ensure that activities relating to the timber

industry such as manufacturing, import and

export, as well as quality control are in

accordance with the given regulations and

procedures which could further spur rapid

development of the timber industry in Sarawak.

STIDC continued to put preventive and

enforcement activities among its top priories to

stem illegal entry of timber from Indonesia. With

the setting up of its offices at the five designated

entry points namely Sematan, Biawak, Tebedu,

Batu Lintang and Lubok Antu, STIDC was able to

closely monitor and regulate the importation of

timber from Indonesia. This is to ensure strict

compliance to the existing procedures such as

documentation and physical inspection of timber.

The preventive and enforcement activities also

involved conducting regular patrols along the

Sarawak/Indonesia border with the cooperation

of the related enforcement agencies such as the

Police, Army, Forest Department, Sarawak

Forestry Corporation, Customs Department,

Malaysian Maritime Enforcement Agency and the

Agriculture Department. Close rapport with

these agencies had contributed to the success in

combating timber smuggling activities and

resulted in several seizures of smuggled timber.

In 2009, Sarawak imported 1,549 cubic metres of

sawn-timber from Indonesia compared with

37,513 cubic meters in 2008. This represented a

decline of 96%. The drastic decline was attributed

to intensive enforcement activities carried out by

relevant authorities in Indonesia and Sarawak.

STIDC also held regular meetings with timber

importers and individuals to update them on the

current policy and regulations on the importation

of timber from Indonesia as well as to obtain

necessary inputs for formulation of improved

strategies and actions.

STIDC also undertook preventive and

enforcement activities to ensure that anyone

involved in timber-related activities in Sarawak is

registered with the Corporation, as stipulated in

The Sarawak Timber Industry (Registration)

Regulations, 2008.

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STIDC Northern and Southern Regional offices

continued to play their pivotal roles as the agents of

growth and catalysts of the timber industry in the Northern

and Central Regions of Sarawak besides providing various

services to the timber industry under their jurisdictions.

Among the responsibilities of these Regional Offices are

one to monitor the overall development of the timber

industry under their respective purview, to implement sawn

timber Grading Rules, to implement the “Sarawak Timber

Industry (Registration) Regulations, 2008”, to process and

issue export and import licenses for timber and timber

products, to collect data on industrial workforce, to assist

in industrial trainings for the timber sector, and to monitor

log supply as well as Log Quota for local processing.

While Bintulu divisional office and Limbang liaison office are

under the ambit of Miri Regional Office, Sibu divisional as

well as Sarikei and Mukah liaison offices are under the

purview of Tanjung Manis Regional Office. Both Regional

offices are managed by their respective Acting Regional

Managers whose responsibilities are to plan, manage and

oversee all activities at regional level in line with STIDC

vision and mission.

NORTHERN AND CENTRAL REgIONS

Tanjung Manis Airport STIDC Wood-based Training

Centre, Tanjung Manis

Aerial view of Tanjung Manis

STIDC Belian Holdings Sendirian

Berhad in Bintulu Division, Sarawak

is among STIDC subsidiaries

involving actively in timber trading

activities including sawn-timber.

Polima Compressed Wood Bintulu

Sendirian Berhad is among STIDC

associate companies whose core

business activity is manufacturing of

compression moulded pallet blocks

and centre plugs.

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Name of Subsidiaries

Harwood Timber Sdn. Bhd.

STIDC Belian Holdings Sdn. Bhd.

Hillog Sdn. Bhd.

Tanjong Manis Furniture Sdn. Bhd.

Saratim Insurance Agency Services

Sdn. Bhd.

Tanjong Manis Shipping Sdn. Bhd

Tanjung Manis Development Sdn. Bhd.

Tanjung Manis Sawmill Sdn. Bhd.

Tanjong Manis Realty Sdn. Bhd.

Hornbill Skyways Sdn. Bhd

Tanjong Manis Resources Sdn. Bhd.

Elmhurst Sdn. Bhd.

Teratim Sdn. Bhd.

Effective

Interests Held (%)

2009

100

100

100

100

100

100

100

100

100

67

60

100

100

2008

100

100

100

100

100

100

100

100

100

67

60

75

100

Principal Activities

Timber trading

Timber trading services

Woodworking and related

timber-processing services

Furniture manifacturing

Insurance Agency

Transportation and wharfing services, trading in

construction materials and construction works

Project Management

Log trading

Planning, operating, managing, and

marketing of realty projects

Aviation services

Production of wood chip

Landscaping and reforestation

Timber logging

CORPORATE INVESTMENTSTIDC continued to diversify its roles by investing in various companies for the benefit of the people. Details

of its corporate investment are as follows:

Aviation Realty Woodchips Production

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Name of Associates

Polima Compressed Wood Bintulu Sdn.

Bhd.

PUSAKA KTS Forest Plantation Sdn.

Bhd.

Bintulu Adhesive & Chemical Sdn. Bhd.

Tanjung Manis Moulding Industries Sdn.

Bhd.

Shin Yang Industries ( Bintulu) Sdn. Bhd.

Houting Sdn. Bhd.

Selah Timber Sdn. Bhd.

Shin Yang Plywood ( Bintulu) Sdn. Bhd

Effective

Interests Held (%)

2009

38

30

30

30

30

30

25

21

2008

38

30

30

30

30

30

25

21

Principal Activities

Manufacturing of compression moulded pallet

blocks and core plugs

Reforestation and oil palm plantation

Manufacturing of adhesives and chemicals

Manufacturing of wood plastic composite

products

Timber extraction and sale

Timber extraction and sale

Timber extraction and sale

Plywood manufacturing and sale

Hotel Shipping Planted Forest Plantation

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35TH ANNIVERSARY

Activities in

STIDC Chairman, the Honourable Datuk Amar Haji

Awang Tengah Ali Hassan, addressing the audience

in conjunction with STIDC 35th anniversary dinner.

STIDC Chairman, The Honourable Datuk Amar Haji Awang

Tengah Ali Hassan (2nd right) and STIDC General Manager,

Datu Haji Len Talip Salleh (left) presenting a souvenir to the

Chief Minister of Sarawak, the Right Honourable Pehin Sri

Abdul Taib Mahmud (2nd left) during the anniversary dinner.

The Chief Minister of Sarawak, the Right Honourable Pehin

Sri Haji Abdul Taib Mahmud (4th left) cutting the anniversary

cake while the board members and others VIPs look on.

STIDC Long Service Award receipients

STIDC General Manager, Datu Haji Len Talif Salleh (left) re-

ceiving the 5S Certificate from The Malaysia Productivity Cor-

poration Director General Dato’ Nik Zainiah Nik Abdul

Rahman

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Industry Update

Regatta Sarawak

STIDC Team Building

Visit to the Timber Museum

Golf Competition

Family Day

Hari Raya Puasa Celebration

Pesta Kaul Mukah

Annual Donation

Tanjung Manis Day

Tanjung Manis Fishing Safari Ibadah Korban

STIDC Furniture Industrial Complex,

Kota Samarahan anniversary celebration

Halal Hub Launching Ceremony

2009

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FINANCIAL STATEMENTS 2009

Part 1I

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