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Development of Global Timber Tycoons in Sarawak, East Malaysia

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Development of Global Timber Tycoons in Sarawak, East Malaysia DEVELOPMENT OF GLOBAL TIMBER TYCOONS IN SARAWAK, EAST MALAYSIA HISTORY AND COMPANY PROFILES February 2011 A report produced for: Bruno Manser Fund, Switzerland www.bmf.ch Authored by: Daniel Faeh, [email protected] i Imprint Bruno Manser Fund, www.bmf. ch Socinstrasse 37 4051 Basel Daniel Faeh, [email protected] Research Assistant at the Economic Geography Group, University of Bern, Switzerland ii CONTENTS CONTENTS ............................................................................................................................................................................III TABLES AND FIGURES.......................................................................................................................................................V ABBREVIATIONS................................................................................................................................................................ VI 1. INTRODUCTION ................................................................................................................................................................1 2. TROPICAL TIMBER INDUSTRY ...................................................................................................................................3 2.1. GLOBAL TROPICAL FOREST RESOURCES........................................................................................................................3 2.2. TROPICAL TIMBER VALUE CHAIN...................................................................................................................................5 2.3. TROPICAL TIMBER MARKET............................................................................................................................................6 2.3.1. Production ...............................................................................................................................................................7 2.3.2. Trade in Tropical Timber Products (logs, sawnwood, plywood, veneer)..........................................................8 2.3.3. Trade in Secondary Processed Wood Products ...................................................................................................9 2.3.4. Prices of Wood Products......................................................................................................................................10 3. TIMBER INDUSTRY, POLICY AND INSTITUTIONS IN MALAYSIA AND SARAWAK ..............................11 3.1. MALAYSIA......................................................................................................................................................................12 3.1.1. Malaysian Timber Industry Board (MTIB).......................................................................................................13 3.1.2. Malaysian Timber Council (MTC) .....................................................................................................................14 3.1.3. Malaysian Timber Certification Council (MTCC)............................................................................................14 3.2. SARAWAK.......................................................................................................................................................................16 3.2.1. Ministry of Planning & Resource Management (MPRM)...............................................................................17 3.2.2. Forest Department................................................................................................................................................17 3.2.3. Sarawak Timber Industry Development Corporation (STIDC) ......................................................................18 3.2.4. Sarawak Forestry Corporation (SFC)................................................................................................................20 3.2.5. Land Custody and Development Authority (PELITA) .....................................................................................20 3.2.6. Royal CustomS Department and Port Authorities ............................................................................................21 3.2.7. Sarawak Timber Association (STA) ...................................................................................................................22 3.3. CONCLUSION ..................................................................................................................................................................22 4. TIMBER INDUSTRY DEVELOPMENT IN SARAWAK..........................................................................................23 4.1. UPSTREAM TIMBER INDUSTRY......................................................................................................................................25 4.2. DOWNSTREAM TIMBER INDUSTRY................................................................................................................................26 4.3. REFORESTATION PROGRAM AND PLANTED FORESTS...................................................................................................27 4.4. LEGALITY .......................................................................................................................................................................28 4.5. STATUS AND MAP OF FORESTRY INDUSTRY AND LICENSES 2008...............................................................................29 5. TIMBER TYCOONS IN SARAWAK.............................................................................................................................31 5.1. SAMLING GROUP............................................................................................................................................................33 Samling Global Limited..................................................................................................................................................34 Lingui Developments Berhad..........................................................................................................................................36 GLENEALY PLANTATIONS (MALAYA) BERHAD ......................................................................................................37 Woodman Group..............................................................................................................................................................38 5.2. RIMBUNAN HIJAU GROUP..............................................................................................................................................39 Jaya Tiasa Holdings Berhad ...........................................................................................................................................42 Rimbunan Sawit Berhad ..................................................................................................................................................45 5.3. WTK GROUP..................................................................................................................................................................46 WTK Holdings Berhad.....................................................................................................................................................47 5.4. TA ANN GROUP..............................................................................................................................................................49 Ta Ann Holdings Berhad .................................................................................................................................................50 5.5. KTS GROUP ...................................................................................................................................................................52 BLD Plantation Berhad...................................................................................................................................................54 5.6. SHIN YANG GROUP ........................................................................................................................................................55 Sarawak Oil Palms Berhad.............................................................................................................................................57 5.7. OTHER TIMBER COMPANIES..........................................................................................................................................58 5.7.1. EKRAN BERHAD ..............................................................................................................................................................58 5.7.2. LIMBANG TRADING LIMBANG (LTL) .....................................................................................................................58 5.7.3. LEE LING GROUP (partly incorporated in Quality Concrete) ...............................................................................59 iii 5.7.4. USAMA INDUSTRIES (incorporated in Wijaya Baru)...............................................................................................60 5.7.5. INTERHILL GROUP ........................................................................................................................................................60 5.7.6. SANYAN GROUP .............................................................................................................................................................61 5.7.7. OTHER PLAYERS.............................................................................................................................................................61
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