Timberwell Berhad (“the Company”) was incorporated in Malaysia on 13 May 1996 under the Companies Act 1965 and is deemed registered under the Companies Act 2016. The Company was subsequently listed on the former Second Board of Bursa Malaysia Securities Berhad on 16 May 1997, offering 6,000,000 ordinary shares of RM1.00 each for public subscription.
The Company is the licence-holder of the Sustainable Forest Management Licence Agreement 06/97 (“SFMLA”), granted by the Sabah State Government. The licence covers 71,293 hectares of natural forest within the Lingkabau Forest Reserve, Kota Marudu, Sabah (“Licence Area”). Under the SFMLA, the Company is permitted to plant, rehabilitate, and harvest timber over a 100-year period commencing 10 September 1997.
On 12 April 2018, the Company entered into the First Supplemental Agreement with the Chief Minister of Sabah to amend the original SFMLA. Key amendments included the rezoning of 15,438.30 hectares as Totally Protected Area (“TPA”) and the excision of 10,195.28 hectares for socio-economic development. In addition, the expansion of the Industrial Tree Plantation (“ITP”) area by 15,242.99 hectares is expected to strengthen the Company’s long-term prospects by enhancing production and planting capacity.
A Second Supplemental Agreement was executed on 9 February 2024, excising an additional 21 hectares (more or less) from the licence area. Following these revisions, the remaining licensed area stands at 45,638.42 hectares. In addition to this, 15,438.30 hectares have been designated as TPA in 2018 are jointly managed by the Company and the Sabah Forestry Department.
The Group’s operations are structured into the following business divisions:
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Forestry Division This division oversees timber harvesting and forest regeneration activities in accordance with the Annual Work Plan approved by the Sabah Forestry Department. Operations strictly adhere to sustainable forest management principles, including comprehensive harvesting plans (CHP), compliance with statutory harvesting standards, and the application of internationally recognised Reduced Impact Logging (RIL) techniques. Harvested timber is supplied to local millers and exported to markets within the Asia region. Plantation Division The Plantation Division is responsible for cultivating approved industrial tree species to sustain the long-term commercial value of the forest resource. Under the SFMLA, the Company manages an ITP area covering 30,125.38 hectares within the Lingkabau Forest Reserve. Current cultivated species include Laran (Neolamarckia cadamba), Binuang (Octomeles sumatrana), Jelutung (Dyera costulata) and rubber trees. The Company has also updated its Plantation Development Plan to include Mahogany and Eucalyptus as additional target species. Trading Division This division manages the marketing and trading of timber products. In 2024, the Company expanded its trading activities to include rubber (cup-lump). While rubber trading contributes additional revenue, the timber business remains the Company’s core operational focus. Property Division The Property Division is involved in the management, investment, and holding of the Group’s property assets. |