Page 36 - FDS Annual Report 2009
P. 36
FOREST DEPARTMENT SARAWAK
ANNUAL REPORT 2009
To ease the financial burden of timber operators and to ensure the survival and viability of
the timber industry in Sarawak due to the global economy and financial crisis, the Forest
Department had considered two actions: (a) Reduction in royalty rate for logs; and (b) Extend
the time for payment of royalty bills for the year 2009 only.
On the 11 December 2008, MMKN had approved the proposal to reduce rate of royalty for
logs under Class I(i) as the following (No.8 Vol. LXIV Swk. L.N. 21 published in the Sarawak
Government Gazette Part II on 2 March, 2009):
nd
(a) Single (flat) rate of RM50.00 per M3 in the round or RM100.00 per M3 converted and
to extend the time for payment of royalty bills by giving a grace period of not exceeding
3 months for the year 2009 only.
(b) Single (flat) rate of RM55.00 per M3 in the round or RM110.00 per M3 converted for
the year 2010.
(c) Single (flat) rate of RM65.00 per M3 in the round or RM130.00 per M3 converted for
the year 2011 onwards.
Due to that decision, most of the bills that had been issued in October, November and
December 2009 only been paid in January, February and March 2010. The implication
shown in revenue collected in year 2009. The State Treasury Department statement show
that only RM386,344,520.55 were collected for revenue coding 64100 as royalty. As
overall, RM431,239,408.59 were collected from all 14 revenue codes under purview of
Forest Department Sarawak. For the purpose of this report, productions of logs shown and
discussed here were based on actual production recorded by Sarawak Forestry Corporation.
1. Forest Revenue
Forest Royalty was the highest contributor for forest revenue with total amount of
RM386,344,520.55 (89% out of total contributions) while the second highest contributions
came from the Forest Permit amounting to RM13,014,408.00 or 3% out of overall
contributions and followed by Sarawak Timber Industries Tariff with total collection of
RM7,472,383.53 (2% out of total contributions).
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ANNUAL REPORT 2009
To ease the financial burden of timber operators and to ensure the survival and viability of
the timber industry in Sarawak due to the global economy and financial crisis, the Forest
Department had considered two actions: (a) Reduction in royalty rate for logs; and (b) Extend
the time for payment of royalty bills for the year 2009 only.
On the 11 December 2008, MMKN had approved the proposal to reduce rate of royalty for
logs under Class I(i) as the following (No.8 Vol. LXIV Swk. L.N. 21 published in the Sarawak
Government Gazette Part II on 2 March, 2009):
nd
(a) Single (flat) rate of RM50.00 per M3 in the round or RM100.00 per M3 converted and
to extend the time for payment of royalty bills by giving a grace period of not exceeding
3 months for the year 2009 only.
(b) Single (flat) rate of RM55.00 per M3 in the round or RM110.00 per M3 converted for
the year 2010.
(c) Single (flat) rate of RM65.00 per M3 in the round or RM130.00 per M3 converted for
the year 2011 onwards.
Due to that decision, most of the bills that had been issued in October, November and
December 2009 only been paid in January, February and March 2010. The implication
shown in revenue collected in year 2009. The State Treasury Department statement show
that only RM386,344,520.55 were collected for revenue coding 64100 as royalty. As
overall, RM431,239,408.59 were collected from all 14 revenue codes under purview of
Forest Department Sarawak. For the purpose of this report, productions of logs shown and
discussed here were based on actual production recorded by Sarawak Forestry Corporation.
1. Forest Revenue
Forest Royalty was the highest contributor for forest revenue with total amount of
RM386,344,520.55 (89% out of total contributions) while the second highest contributions
came from the Forest Permit amounting to RM13,014,408.00 or 3% out of overall
contributions and followed by Sarawak Timber Industries Tariff with total collection of
RM7,472,383.53 (2% out of total contributions).
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