Stumpage Appraisal Using Tender Price in Pahang, Peninsular Malaysia
Previous studies have shown that tropical forests are under valued. This may result in unsustainable harvest, biased against conservation and low revenue to the government. A study was conducted m the state of Pahang, Peninsula Malaysia to determine the trend and patterns of tender prices based o...
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| Format: | Project Paper Report |
| Language: | English English |
| Published: |
1999
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/9989/1/FH_1999_13_IR.pdf |
| Summary: | Previous studies have shown that tropical forests are under valued. This may
result in unsustainable harvest, biased against conservation and low revenue to the
government. A study was conducted m the state of Pahang, Peninsula Malaysia to
determine the trend and patterns of tender prices based on 277 logging transactions
between the period 1993 to 1998. An analysis was also conducted to compare the
actual tender price offered by the concessionaires with the estimated tender price
using residual value technique for three logging compartments. Data on tender
prices were collected from the Pahang State Forestry Department sales record. For
the comparative analysis of tender price between actual and estimated price, data
were obtained from state-own logging enterprises. These include data on timber
volume, log price, logging and actual tender price. The result indicate that the
average tender price offered by the concessionaires is RM6,271.44 per hectare, and
the highest average tender price IS RM14,236.51 per hectare. The highest average
tender prices (RM10,558.76 per hectare) is in the District of Lipis, followed by
District of Jerantut (RM8,996.21). In general, the tender price has shown
fluctuating trends during the study period, mainly due to economic situation and
demand supply situation of log. The result from comparative analysis indicates that
the concessionaires are relatively over-estimate the stumpage value, ranging from
6.4 to 20.14 percent. The study suggests that tendering would indicate full market
value of a logging compartment when it is used for timber production. The
estimated tender price using the residual value technique can be used to set the floor
price. Further research is needed to obtain a comprehensive tendering mechanism
before Implementing any police reform on forest revenue system in the state. |
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