Extracted from The Star Publication, 3rd
July 1999
The
Government will announce a new cess rate for the timber industry on Aug 1 1999 after
exporters objected to the earlier rate introduced tow months ago.
On May 1, 1999, the Government announced the increase of cess payments for
timber exports from RM1.36 to RM10 per m3 and the Malaysian Timber
Industry Board (MTB) would be beneficiary of the payments.
Primary
Industries Minster Datuk Seri Dr Lim Keng Yaik said the ministry hoped the representatives
from the timber-related industries would accede to the new cess rate imposed by the
MTIB.
" The
announcement on the new cess would be made after discussions with the representative
from the industry,” he told reporters after holding a dialogue with members of the
Malaysian Medium Density Fibreboard (MDF) Producers’ Association at Bandar Baru Nilai
on Thursday. The members of the association are representatives of seven MDF producers in
the country.
Lim said
the MTIB has also included MDF producers for the cess payments although the producers were
not happy with the inclusion.
“I
have explained to the producers on the reason of the inclusion which would eventually
provide them with the service of market intelligence and marketing of MDF products,”
he said.
He said the MDF products were badly
hit during the economic downturn when prices declined steeply from US$400 in 1993 to
US$150 per cum currently.
He said
Malaysia with its abundant raw materials, however is not in a position to produce
competitively anymore as the prices have dropped below production cost. He also urged high
cost producers such as Europe, the United States and Japan to work together to protect the
MDF pricing.
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