Chong call upon Adenan not to lose sight of the main issue in our timber industry which is the monopoly by the Big 6.

The main enemy of Sarawak’s timber industry is not illegal logging, but the monopolisation of the logging industry by the “Big 6”, namely, WTK Holdings SdnBhd, KTS Holdings SdnBhd, RimbunanHijau, Ta Ann, Samling and Shin Yang groups and their subsidiaries or related companies.

The respective sizes of the timber concession held by these “Big 6” are as follows:
1.         Ta Ann Group of Companies              --          1,069,935 acre
2.         RH Group of Companies                    --          2,475,604 acre
3.         Shin Yang Group of Companies        --          1,237,716 acre
4.         Samling Group of Companies            --          3,183,565 acre
5.         KTS Group of Companies                  --           357,017 acre
6.         WTK Group of Companies                 --             882,176 acre

Together, their timber concessions’ surface area covers 1/3rd of Sarawak’s total area.


If we compare the Sarawak’s total official timber production and the illegal log seized over the past years, it can be noted that the seized logs constitute a lot less than 1% of the total timber production.


year
Sarawak’s Timber Production (m3)
Seized Illegal timber
(m3)
Percentage of Seized timber to Timber Production
2009
10,300,000
35,317
0.34%
2010
10,200,000
12,109
0.11%
2011
9,610,000
25,780
0.26%
2012
9,460,000
20,647
0.21%
2013
8,210,000
11,217
0.13%
2014
8,700,000
46,216
0.53%

With these figures, it is obvious that illegal logging is not such a major problem in the logging industry that warrants the full weight of the government to combat it.  That may also be the reason why after the freeze of more than 500 bank accounts of those timber related companies last year, NOT A SINGLE COMPANY was prosecuted in Court.

DAP does not condone illegal logging and we do agree that stern action must be taken against illegal logging. 

However, more importantly and urgently is the need to break the monopoly of the timber industry by the Big 6, the legacy of Taib’sadminisration, unless Adenan is minded to continue with such cronyism policy of Taib.

The concentration of the timber resources in the Big 6 is most detrimental to our Sarawak’s overall economy in that it has deprived many of fair economic opportunities, widened the income disparity of the population, caused great outflow of money and resulted in high deforestation rate in the State.

Therefore, if Adenan truly wishes to do good for the State, he should do the followings:
(1)       immediately review and terminate a substantial portion of the timber licences granted to the Big 6;(2)       break-up these licences into smaller areas and gradually award through open tender for the purpose of the timber downstream industry; and
(3)       impose total prohibition on timber logs so as to encourage timber downstream industry and create more job opportunities for the local.

I call upon Adenan not to lose sight of the main issue in our timber industry which is the monopoly by the Big 6.


4-3-2016
Chong Chieng Jen
MP for Bandar Kuching
ADUN for Kota Sentosa