Monday, June 23, 2025

Sabah exports first EUDR-COMPLIANT plywood shipment to Europe

Datuk  Frederick  Kugan: “This  achievement  is  a  testament  to  Sabah’s  commitment  to  sustainable  forest management.”

KOTA KINABALU : – The Sabah Forestry Department is proud to announce that Sabah has exported its first container shipment of EUDR-compliant plywood to Poland on 29th September 2024.

This  milestone shipment,  comprising 45.73  cubic  meters of  plywood, was produced by Integrated Wood Processing Sdn Bhd in Tawau and exported to Poland.

The raw materials were responsibly sourced from Sapulut Forest Development Sdn Bhd, a Sustainable Forest Management License Agreement (SFMLA) licensee, under the Sabah State Government’s jurisdiction and the oversight of the Sabah Forestry Department.

The  EUDR,  introduced  in 2022 and set to take  effect on 30th  December 2024, mandates that timber products entering the EU must be free from deforestation or forest  degradation  after  31st  December  2020.

It  also  requires  comprehensive traceability through geolocation data and a due diligence statement, ensuring products meet strict environmental criteria.

This pioneering shipment reflects Sabah’s readiness to meet stringent international environmental standards, positioning its timber industry for greater market access and competitiveness in Europe.

It also underscores the strong collaboration between the Sabah  Forestry  Department,  local timber  industry stakeholders, and  international partners in promoting sustainable and responsible forestry.

“This  achievement  is  a  testament  to  Sabah’s  commitment  to  sustainable  forest management and our proactive approach to meeting global market demands,” Datuk  Frederick  Kugan,  Chief  Conservator  of  Forests  said in a statement today.

“Through compliance with the EUDR, we are not only enhancing the credibility  of  Sabah’s  timber  products  but  also  contributing  to  global  efforts  in combating deforestation and climate change. Our success in delivering the first EUDR- compliant shipment to Europe amid ongoing debates over the regulation is a reflection of our dedication to preserving our natural resources and advancing Sabah’s forestry sector.”

Exporting  EUDR-compliant products presents significant challenges, as the entire supply chain must undergo rigorous re-evaluation, including implementing new data collection  and  tracking  systems.  The  Sabah   Forestry   Department   has   been instrumental  in this effort,  enhancing  its  capacity to  provide the geolocation and traceability data required by the EUDR.

This improvement facilitates better monitoring of forest activities and ensures transparency in timber supply chains, aligning with international environmental standards.

The foundation for this success is Sabah’s Sustainable Forest Management License Agreement (SFMLA) policy, which has been in place since 1997.

This policy balances social,   economic,   and   environmental   development,   requiring   Natural   Forest Management (NFM) practices and Reduced Impact Logging (RIL) techniques that protect biodiversity, reduce soil erosion, and preserve ecosystem functions.

These sustainable practices are closely aligned with the EUDR’s objectives of preventing deforestation and forest degradation globally.

To further demonstrate its commitment to sustainability, Sabah has also developed the Sabah Timber Legality Assurance System (Sabah TLAS), a mandatory third-party audited system that ensures legality and transparency across the entire timber supply chain. The Sabah TLAS, first introduced in 2009, has been a critical tool in establishing the due diligence procedures required by the EUDR.

Looking ahead, Sabah is poised to strengthen its efforts with the ongoing EU-FDS project to upgrade the Sabah TLAS to fully meet EUDR requirements.

This initiative, slated for completion by February 2025, will integrate sustainability, environmental protection, and social responsibility into the system.

The project involves consultations with key industry stakeholders, including the Implementing Agencies Coordination Committee  (IACC),  Sabah Timber  Industries Association  (STIA), and the Timber Association of Sabah (TAS), among others.

“Sabah remains committed to enhancing its environmental governance and ensuring that our timber products continue to meet the highest international standards,” added Datuk Kugan.

“Through continued collaboration with our international partners and industry  stakeholders,  we  are  ensuring  that  Sabah  remains  at  the  forefront  of sustainable  forestry  practices,  and  the  system  also  factors  in  the  current  state development agenda and plans.”

This historic shipment signals Sabah’s leadership in sustainable forest management and opens new doors for its timber industry to thrive in an increasingly eco-conscious global market.

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