Tree

Sabah Softwood Berhad (SSB), strategically based in Tawau—Sabah's third-largest town on northern Borneo—oversees an expansive land bank of more than 60,600 hectares within the Yayasan Sabah timber concession area. This encompasses 41,500 hectares in Brumas and 19,100 hectares in Kalabakan. Founded in 1973 as a joint venture between Yayasan Sabah and North Borneo Timber (60% - 40% shares), SSB is now 70% owned by Innoprise Corporation Sdn. Bhd., the investment arm of the Yayasan Sabah Group. Our primary operations focused on pulp log and woodchip production.

 


Sustainability Commitment

At SSB, we are dedicated to the principles of the triple bottom line, integrating People, Planet, and Profit into our corporate philosophy. We adhere to best practices in tree plantation management and made a significant impact in 1974 by designating 60,000 hectares for an Industrial Tree Plantation (ITP), establishing ourselves as the first private company in Malaysia and Southeast Asia to commercialize tree plantations. Our company’s celebration of 50 years demonstrates our strong commitment to sustainability in the agroforestry industry. Today, SSB manages approximately 23,990 surveyed hectares in the tree plantation sector, including 5,129 hectares reserved for non-production, conservation, and biodiversity initiatives.

Global Certifications for Sustainable Excellence

SSB proudly holds world-class certifications that affirm our leadership in responsible forestry and supply chain integrity:

  • Forest Stewardship Council (FSC®) Certified Tree Plantation – The global benchmark for environmentally responsible, socially beneficial, and economically viable forest management.
  • Timber Legality Assurance System (TLAS) Certified – Since 2007, ensuring rigorous compliance with international timber legality standards.
  • FSC® Chain-of-Custody (CoC) Certification – Since 2011 for woodchips, providing end-to-end traceability from plantation to market.
  • Integrated Management System (IMS) Certified – Since 2023, encompassing Quality, Occupational Safety and Health (OSH), Environmental Management, and Anti-Bribery Management System (ABMS) for holistic operational excellence.

These prestigious accreditations underscore our unwavering dedication to ethical practices, legal assurance, and sustainable innovation.


Innovative Species Selection

To meet global demand for sustainable wood while reducing pressure on natural forests, SSB's Research and Development team supports replanting programs with proven species, including Eucalyptus pellita, Eucalyptus hybrids, Acacia hybrids, and non-pulp species including Albizia falcataria and Neolamarckia cadamba (Laran). These are refined through advanced tree breeding programs and clonal deployment, delivering superior genetics, faster growth, and higher yields. Today, we prioritize Eucalyptus pellita, Eucalyptus hybrids, and Acacia hybrids to address strong market demand.

Innovative Species Selection

Our comprehensive strategy ensures long-term plantation viability, featuring shortened five-year rotation cycles, higher stand densities per hectare, and expanded areas for annual harvesting and replanting. Optimized operations deliver exceptional productivity from Eucalyptus pellita and its hybrids and as well as non-pulp species across 23,990 surveyed hectares, with 18,862 hectares actively cultivated for the main species. Dedicated R&D efforts to continuously provide high quality clonal planting materials and technical support our tree plantation operation.

Strategic Goals for Sustainable Log Production

SSB targets an annual production of 360,000 cubic meters by 2030 to meet growing demand from the Japanese and Chinese markets, as well as neighboring countries like Indonesia. This forward-thinking strategy underscores our dedication to sustainable forestry and positions SSB as an industry leader in Sabah.

Powered by innovative practices and an unwavering commitment to sustainability, we excel in agroforestry, creating enduring positive impacts for the environment and local communities.


Chipmill

To support its Tree Plantation downstream initiatives, SSB owned and operates a Chip Mill and has been in the wood chips supply business since 1998. The earlier production line was designed by Fulghum Industries from the United States, was located at Sg. Udin, about a forty-five minute drive from Tawau town. Installation of the machinery began in May 1997 and was completed by the end of October the same year.

The Chip Mill began producing wood chips in 1998, and this activity has elevated SSB as the leading supplier of wood chips from Malaysia, with an annual production of 180,000 Green Metric Tons (GMT), equivalent to approximately 100,000 Bone Dry Metric Tons (BDMT).

 

This chip mill was designed to process large volumes of pulp logs, sourced from own fast-growing plantation tree species at competitive cost. In early days, the main source of wood chips comes from Acacia mangium trees. From 2012 onward, SSB replaced Acacia mangium with Eucalyptus pellita which is more resistant to disease and produce higher yield and by 2018, SSB has begun shipping Eucalyptus pellita wood chips. At the same time, SSB began a long-term breeding program to develop versatile Acacia hybrid which is resistant to Ceratocystis manginecans, with commercial planting expected to start in 2027. Distinct and identifiable procedures are in place to track raw materials from the source, all stages of processing and eventual distribution in compliance to the stringent standard of certification.

High quality, pulp making grade wood chips produced from SSB’s Chip Mill are mostly exported to Japan, China, and Indonesia as well as local MDF manufacturer. The Chip Mill’s operations have been certified under the FSC® Chain-Of-Custody (CoC) for wood-based manufacturing. This certification provides traceability of sustainable source of wood fiber and command premium prices. Clear and identifiable procedures have been established to facilitate traceability of raw materials from its source, through all stages of processing and to the final distribution, in line with the strict standards of certification.

In line with SSB’s Tree Plantation long term direction towards high yield plantation and with special focus on producing logs for fiber, SSB has taken steps to modernize Chip Mill operations by acquiring a new processing line with rated capacity of 100mt/hour. Constructed on the existing location, this new production line developed by Yilin, China, utilizes Programmable Logic Control (PLC) system. The system automatically controls the machinery and processes, therefore reduces dependency on labour. The new production line is currently undergoing commissioning and is expected to be fully operational by mid-2026.


Forest Stewardship Council® (FSC®)

As a pioneer in large-scale commercial forest plantations, SSB has been FSC® certified since 2007, covering 30,000 hectares of forest plantation areas established prior to 1994. The plantation has been successfully re-certified for a further five-year period (2022–2027) under the FSC® Certification Scheme, marking its fourth certification cycle since 2007. This re-certification covers the period from October 2022 to October 2027, making SSB’s plantation among the longest continuously certified well-managed forest plantations under the SCS Qualifor Programme.