CM: Rubber in FMU project augurs well
Published on: Sunday, September 14, 2008
Kota Kinabalu: The implementation of Sabah Development Corridor (SDC) in the interior region received a further boost Saturday with a joint-venture between a Forest Management Unit (FMU) licensee and China-based rubber development company.
Bornion Timber Sdn Bhd (BT) and Guangdong Guangken Rubber Group Co. Ltd of China, through their joint-venture company Bornion Guangken Rubber Sdn Bhd (BGR), would undertake to develop 12,000 hectares of rubber forest plantation (RFP) at Ulu Sungai Milian Forest Reserve in Keningau.
The forest reserve (FMU No: 11) is currently licensed to BT by the State Government for 100 years under the Sustainable Forest Management (SFM) License Agreement. BT currently manages a total of 108,665 hectares of forest reserve land under the licence.
The total investment by BGR for the upstream RFP and other related downstream industries is expected to be about RM230 million for 10 years and see the creation of 2,000 jobs.
BGR will build a rubber processing factory to cater for latex produced from the RFP area as well as later a wood processing mill for the planted rubberwood.
Chief Minister Datuk Seri Musa Haji Aman, who witnessed the agreement signing ceremony held at Pacific Sutera Hotel here, said the rubber forest plantation in a FMU in Sabah augurs well for the State's reforestation efforts and in line with the SDC plan.
He said such a project would provide job opportunities for the locals as well contribute to the reforestation efforts in an FMU.
"The State Government welcomes co-operation, specifically in reforestation of an FMU, which meets the State Government's objectives of meeting the FMU requirements for sustainable forest management and achieving the vision of developing the rural areas under the SDC plan," Musa, who is also Finance Minister said.
"Such a project bodes well for the people in a particular vicinity as the development of the rubber forest plantation can help uplift their standard of living, which is also in line with the government's poverty eradication programme, " he said.
Sabah is now in the implementation phase of the Ninth Malaysin Plan (9MP) and SDC, which is divided into three sub-regions involving the Western, Central and Eastern regions.
The Western Region will cover industrial, logistic and agro food sectors as well as act as the main tourism gateway to Sabah, while the Central Region has been designed for Interior Agropolitan, cultural and highland tourism.
In addition the Eastern Region will focus on the development of biodiversity conservation, palm oil industrial clusters, aquaculture and integrated food commercial zone.
Among those present were Consul-General of the People's Republic of China to Kuching, Xie FuGen, Industrial Development Minister Datuk Ewon Ebin, Assistant Agriculture and Food Industry Minister Datuk Bobbey Suan, Guangdong Agribusiness Group Corporation of Guangdong Province Chairman Lai Shi Ren.
Also present were BT Managing Director Wee Kok Tiong, Sabah Forestry Director Datuk Sam Mannan, UMS Vice Chancellor Prof Datuk Dr Haji Kamaruzaman Ampon and Malaysia Rubber Board (MRB) Deputy Director-General Dr Mohd Akbar Md Said.
Apart from the signing of agreement between BT and the China group company, Musa also witnessed the signing of memorandums of understanding (MoUs) between BT and Universiti Malaysia Sabah (UMS) for renewal of their existing co-operation to another five years and between BT and MRB.
BT Managing Director Wee said the joint development with the China group company would take 10 years to complete and involves rubber timber latex clones.
The area is expected to produce 24,000 tonnes of standard Malaysia Rubber annually and rubber wood timber of not less than 2.4 million m3.
"Guangdong Guangken Rubber Group is one of the subsidiaries of Guangdong Agribusiness Group Corporation which has vast knowledge in rubber planting, processing and marketing of rubber wood and rubber products, " he said.
Wee said the company, which is an international player having downstream interests in Thailand, Vietnam, Cambodia and Sarawak, manages 44,000 hectares of rubber and three modern rubber factories in China.
The corporation is also involved in food and cattle as well as dairy farming activities in China and is planning to venture in food-based cultivation activities in the State.
On the MoU renewal with UMS, Wee said it would involve a 30-hectare logged over forest for research and development project with the UMS. BT is also offering RM150,000 for the said five-year project.
He said both BT and UMS had embarked on a collaboration since five years ago to provide the university's School of Forestry students practical training and hands on experiences.
Its MoU with MRB is meant to provide BT with the latest technical knowhow in rubber forest development and in the processing of standard Malaysia Rubber, said Wee, adding MRB with its vast experience in rubber research will be able to assist BT with its new innovation and clones to improve the rubber industry.
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