KOTA KINABALU : As we usher in the Year of the Fire Horse in 2026, we welcome a new chapter filled with renewed hope, determination and opportunity.
Over the past year, our industry has navigated global market uncertainties, rising operational costs, tightening international regulations and logistical challenges. Yet, like the Fire Horse, we must continue to move forward with determination and adaptability,transforming challenges into opportunities for improvement and growth.
Throughout the year, STIA has continued to maintain engagement with state and federal authorities on key matters. Amongst which include forestry related concerns, labourregulations, market compliance, logistics challenges and local issues affecting both the upstream and downstream industry.
A significant milestone this year was the successful enhancement of the Sabah Timber Legality Assurance SystemPlus (Sabah TLAS+). The upgraded TLAS framework strengthens Sabah’s legality and sustainability standards, aligning with evolving international market requirement sparticularly the European Union Deforestation Regulation (EUDR) and EU Corporate Sustainability Due Diligence Directive (EU CS3D).
With the introduction of new principleson deforestation-free and enhanced due diligence elements for intended market, Sabah TLAS+ reinforces transparency, traceability and responsible forest management.
STIA worked closely with the Sabah Forestry Department and relevant stakeholders throughout the consultation process to ensure that the revised system remains practical and credible while meeting international expectations.
The achievement of Sabah TLAS+ further strengthens Sabah’s position as global industry leader in sustainably managed tropical timber while enhancing buyers’ confidence in global markets.
STIA also took part in the booth exhibition showcasing products from member companies, highlighting plantation timber and the potential of plantation species at the recent Sabah TLAS+ launching event.
The implementation of the e-Removal Pass (e-RP) system marks another important milestone in Sabah’s journey towards digitalisation.
The transition from manual processes to an online system with digital approvals, QR code tracking and improved reporting reflects Sabah Forestry Department’s commitment to stronger monitoring and full traceability of timber movement.
This advancement improves efficiency, transparency and governance within the supply chain, signalling that Sabah’s forestry sector is steadily progressing towards a more modern and digitalised management framework.
At the national level, STIA continues to actively advocate through the Malaysian Timber Association (MTA) platform to address key issues and regulatory matters affecting the industry.
Among the priority concerns are the European Union Deforestation Regulation (EUDR), CITES-related developments, the Industrial Tree Plantation (ITP) policy, and other pertinent matters impacting raw material supply, international trade, and long-term sustainability
Through MTA, STIA ensures that Sabah’s perspectives are effectively represented in national engagements with relevant federal ministries and agencies.
Attention has been given to developments under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), especially in light of increasing global scrutiny over timber-producing countries.
Growing proposals to list commercially important timber species under the CITES Appendices is one of the primary areas where time and energy has been focused on.
In line with our efforts to promote Sabah’s timber productslocally and internationally, STIA participated in local and international exhibition namely World Expo 2025 in Osaka, Malaysian Wood Expo 2025 in Kuala Lumpur and Shunde(Lunjiao) International Woodworking Machinery and Furniture Raw Material Expo 2025 in China.
These platforms enabled us to promote Sabah’s timber products and its ITPdevelopment apart from strengthen international networks and gain valuable insights into the latest machinery, technology and market trends. Continuous exposure to global developments is essential to enhance innovation, productivity and competitiveness.
While we celebrate these achievements, we also recognise that many challenges remain ahead. Port-related issues, logistical constraints and congestion continue to affect export efficiency.
The rising cost of doing business including the recent hike in electricity tariffs has placed additional pressure on manufacturers. At the same time, compliance with various new and existing regulations while necessary and important, inevitably increases operational costs.
Despite the difficult road ahead, the timber industry is fully committed in its efforts to comply with all relevant laws, standards and sustainability requirements.
However, in implementing policies and regulatory measures, it is equally important to consider the practical realities faced by employers and manufacturers.
A balanced and consultative approach is essential to ensure that compliance does not compromise business viability, investment confidence and employment sustainability.
As we step into the Year of the Fire Horse, let us move forward with determination, unity and confidence. Through strong collaboration between industry and government, we can build a more sustainable, balanced and future-ready timber sector for Sabah.
On behalf of Sabah Timber Industries Association, I wish everyone a prosperous and successful Chinese New Year.
Gong Xi Fa Cai.
P J TAN
President
Sabah Timber Industries Association (STIA)
