1. BY : NICHOLAS ANDREW LISSEM SARAWAK TIMBER INDUSTRY DEVELOPMENT CORPORATION (STIDC) (20 TH JULY 2009) Perbadanan Kemajuan Perusahaan Kayu Sarawak (PUSAKA) Sarawak Timber Industry Development Corporation (STIDC)

3. How it happen! July 2007 - Sub-prime mortgage August 07 to end 2008 – Fuel prices September 2008 – Collapse of Lehman Brothers October 2008 – Big 3 Automobile crisis December 2008 – Ponzi Scheme August 2008 – Political crisis in Thailand A (H1N1) Pandemic Many viewed this as one of the worst economic crisis after the Great Depression in 1929/30

4. How it happened ! - Sub-prime Mortgage

5. Source : ITTO Tropical Timber Market Report, Vol. 13 Number 23, 1-15 December 2008

7. How it happened – Increase in Crude Oil Prices AVERAGE WEIGHTED AVERAGE PRICE OF CRUDE OIL, USD/BARREL

8. Collapse of Lehman Brothers Bank debt of US$613 billion Bond debt of US$155 billion Asset of US$639 billion

9. Ponzi Scheme Started @ 10 Dec 2008, announces to pay US$2 million bonuses, months earleir Investment worth RM65 billion Involving big investors corporate and individuals

10. How it happened ! - A (H1N1) PANDEMIC CasesDeath World94,500430 Malaysia835- As of 17 July 2009

11. Previous Experiences : Export Trend of Timber and Timber Products Sarawak Source : STIDC

13. PRODUK/TAHUN20072008 M3RM (‘000)M3RM (‘000) LOGS3,745,8481,757,2383,482,5991,702,196 PLYWOOD2,814,2154,066,2873,172,8684,406,576 SAWN TIMBER1,084,470997,2221,027,706970,961 VENEER320,337319,309321,399304,480 MDF/FIBREBOARD195,104197,683176,548206,554 PARTICLE BOARD108,80648,690110,07153,336 LAMINATED BOARD /FLOORING 21,00854,41212,87235,219 MOULDINGS23,52451,5849,90524,009 DOWELS4,87011,7913,33910,415 BLOCKBOARD6,2136,77616,56616,639 WOODCHIPS (Tonne)303,70036,517232,70027,381 OTHERS162,062142,836 JUMLAH7,709,5717,900,601 SARAWAK: EKSPORT OF TIMBER PRODUCTS

14. VALUE (RM MILLION) SARAWAK: EXPORT EARNINGS OF MAJOR COMMODITIES- 2008

15. MALAYSIA TOTAL EXPORT: RM22.96 BILION MALAYSIA: NATIONAL EXPORT VALUE OF TIMBER PRODUCTS - 2008 VALUE (RM MILLION)

16. EKSPORT 2008 – RM7.9 BILLION SARAWAK: EXPORT VALUE OF TIMBER PRODUCTS BY TYPES - 2008 VALUE (RM MILLION)

17. Volume (M3) SARAWAK: LOG EXPORT BY DESTINATION- 2008

18. Volume (m3) SARAWAK: SAWN TIMBER EXPORT DESTINATION - 2008

19. M3 SARAWAK: PLYWOOD EXPORT BY DESTINATION - 2008

21. Mitigation Measures Stimulus pacakge #1 Stimulus package #2 – RM67 billion Reduction of royalty rate from RM65 to RM50 per cubic metre Relaxation of payment for royalty from 2 weeks to 3 months Continuous market promotions (visits, timber selling mission, exhibitions, etc)

22. Monthly volume of logs utilized by mills Source : STIDC

23. Monthly production trend of sawn timber, plywood & veneer Source : STIDC

24. Monthly production trend of MDF, Particleboard & Woodchips Source : STIDC

25. Monthly production trend of dowel and moulding Source : STIDC

26. Monthly export value of timber products Source : STIDC

27. NUMBER OF WORKERS IN THE TIMBER INDUSTRY Source : STIDC

28. WHERE ARE WE HEADING !

29. REAL GDP OF ADVANCED ECONOMIES CountryReal GDP 2007200820092010 USA2.01.1-2.80.0 Germany2.51.3-5.6 France2.10.7-3.00.4 Netherlands3.52.0-4.8-0.7 Belgium2.61.1-3.80.3 United Kingdom3.00.7-4.1-0.4 Canada2.70.5-2.51.2 Australia4.02.1-1.40.6 Denmark1.6-1.1-4.00.4 Source : World Economic Outlook April 2009 Crisis and Recovery, International Monetary Fund

30. REAL GDP OF SELECTED ECONOMIES CountryReal GDP 2007200820092010 China13.09.06.57.5 India9.37.34.55.6 Indonesia6.36.12.53.5 Thailand4.92.6-3.01.0 Philippines7.24.6-3.51.3 Malaysia6.34.6-3.51.3 Singapore7.81.1-10.0-0.1 Vietnam8.56.23.34.0 Korea5.12.2-4.01.5 Taiwan5.70.1-7.50.0 Hong Kong6.42.5-4.50.5 Source : World Economic Outlook April 2009 Crisis and Recovery, International Monetary Fund

38. Where are we heading : Take-off to recovery