Page 35 - FDS Annual Report 2009
P. 35
FOREST DEPARTMENT SARAWAK
ANNUAL REPORT 2009
The Department plays an important role in ensuring revenue due to Government are
accounted for and collected on time and in accordance with Forests Ordinance, Cap 126;
Forest Rules, 1962; Forest Timber Licence Conditions; Instructions for the Inspection of
Logging Areas, 1982; and MS ISO 9001:2000 Royalty Assessment (Policy, Procedure &
Work Instruction). Other than that, the Department is responsible for preparing Annual
Forecast & Estimates on Logs Production & Revenue from the forestry sector such as
Royalty, Premium, Tariff, Permit Fees, Licence Fees, and other payments that accrue to the
Government as well as analyzing monthly and annual logs production reports, logs
movement and utilization reports, and revenue collection reports respectively from Sarawak
Forestry Corporation (SFC), Harwood Timber Sdn. Bhd. and the State Treasury.
Majlis Mesyuarat Kerajaan Negeri Sarawak (MMKN) has approved MMKN paper on the
amendment to the First Schedule of the Forests Ordinance [Section 52(2)] on the rates of
royalty for produce taken under licence on the 21 August 2008 vide ref. 65/KPPS/S/H/4-
st
38 dated 26 September 2008.
th
3
Rate of royalty for logs shall be a single (flat) rate of RM65 per M in round or RM130 per M
3
converted. MMKN has also agreed that the amendment to the First Schedule shall come
into force on the 1 January 2009.
st
The reasons behind this revision are:
(a) Export prices of logs and timber products have risen considerably since the last
revision of the Schedule in 1997;
(b) The existing rates of royalty for the various timber species groups are not reflective of
their current market prices and, therefore, their financial worth;
(c) The overall increase in the rate of royalty for logs is moderate considering the
prevailing high prices of logs and timber products, and will not be a financial burden to
the timber industry; and
(d) A single royalty rate is simpler, easier to implement and monitor.
31 | P a g e
ANNUAL REPORT 2009
The Department plays an important role in ensuring revenue due to Government are
accounted for and collected on time and in accordance with Forests Ordinance, Cap 126;
Forest Rules, 1962; Forest Timber Licence Conditions; Instructions for the Inspection of
Logging Areas, 1982; and MS ISO 9001:2000 Royalty Assessment (Policy, Procedure &
Work Instruction). Other than that, the Department is responsible for preparing Annual
Forecast & Estimates on Logs Production & Revenue from the forestry sector such as
Royalty, Premium, Tariff, Permit Fees, Licence Fees, and other payments that accrue to the
Government as well as analyzing monthly and annual logs production reports, logs
movement and utilization reports, and revenue collection reports respectively from Sarawak
Forestry Corporation (SFC), Harwood Timber Sdn. Bhd. and the State Treasury.
Majlis Mesyuarat Kerajaan Negeri Sarawak (MMKN) has approved MMKN paper on the
amendment to the First Schedule of the Forests Ordinance [Section 52(2)] on the rates of
royalty for produce taken under licence on the 21 August 2008 vide ref. 65/KPPS/S/H/4-
st
38 dated 26 September 2008.
th
3
Rate of royalty for logs shall be a single (flat) rate of RM65 per M in round or RM130 per M
3
converted. MMKN has also agreed that the amendment to the First Schedule shall come
into force on the 1 January 2009.
st
The reasons behind this revision are:
(a) Export prices of logs and timber products have risen considerably since the last
revision of the Schedule in 1997;
(b) The existing rates of royalty for the various timber species groups are not reflective of
their current market prices and, therefore, their financial worth;
(c) The overall increase in the rate of royalty for logs is moderate considering the
prevailing high prices of logs and timber products, and will not be a financial burden to
the timber industry; and
(d) A single royalty rate is simpler, easier to implement and monitor.
31 | P a g e
