Corporate Perspective

Statement From the Chief Executive Officer

2018 was another challenging year for the Group. The International economic growth remains generally low throughout the year and the changes in the State Government policy on round logs export in May 2018 compelled the Company to advocate the focus on domestic timber market.

The Company was again awarded the Certificate of Compliance by the Sabah Chief Conservator of Forest for fulfilling the requirements for 2017 Annual Work Plan with an improved performance. Due to the challenges and performance, the Group continued to strive to improve its productivity and efficiency and adopt a prudent approach in planting within a discreet and manageable area.

The Company is also fully committed to achieve Malaysian Criteria and Indicator (MC & I) standards and has commenced preliminary audit and stake holders' consultation to be certified under Malaysian Timber Certification Scheme (Natural Forest)

For 2019, the Company pledged to continue the effort and has committed to replant a practical rehabilitation planting area with a combination of mosaic gap planting design and liberation treatment and carry out forest improvement through Silviculture activity and continue to practice Reduced Impact Logging ("RIL").

Despite the challenging conditions, we are committed to make the Company a socially and environmentally responsible company. We remain committed to Sustainable Forest Management Principles as we believe this is important for our future generations when we contribute towards prudent management of our forest resources to attain optimum economic, environmental and social returns.