Edited Research Final

8/6/2019 Edited Research Final

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TABLE OF CONTENT

1.0 INTRODUCTION OF STUDY 1

1.1 BACKGROUND OF STUDY 2 - 3

2.0 PROBLEM IDENTIFICATION 4

2.1 OBJECTIVES, SCOPE AND STUDY QUESTION 5 - 6

3.0 ELEMENTS CONTRIBUTING TO ISSUE 7

3.1 LITERATURE REVIEW 7

3.2 FIRMS FINANCIAL POSITION 7

3.3 FACTORS AFFECTING SALES 7

3.4 PERFORMANCE OF SALES 8

4.0 CASE STUDY METHODOLOGY 9

4.1 PRIMARY DATA 10

4.1.1 FACE-TO-FACE INTERVIEW 10

4.2 SECONDARY DATA 11

4.2.1 JOURNAL 11

4.2.2 ANNUAL REPORT 11

4.2.3 WEBSITE 11

4.2.4 BOOKS 11

1.0 INTRODUCTION OF STUDY

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The Sarawak Timber Industry Development Corporation (STIDC) is a company which the

function would be to stimulate by all possible means the planned expansion of wood-based

industries throughout Sarawak at a role consistent with the overall interest of the economy, the

availability of capital and the technical expertise and effective management of the forest

resources. STIDC vision is to be The Leader and Catalyst of the Timber Industry and their

mission is to plan, coordinate and develop the wood-based industries in Sarawak towards

optimum and efficient utilization of timber resources by encouraging downstream processing

and product diversification. This case study is mainly on analyzing the sales performance of

STIDC for the year 2004 until 2008. The source of sales that determine the level of sales for

STIDC is basically from their timber premium which they collect every year, the registration fees

where all new set up factory must pay certain sum of payment in order to get licensed by

STIDC, the dividends receive from their 13 other subsidiaries especially from their top

subsidiaries which are Harwood Timber Sdn. Bhd, STIDC Belian Holdings Sdn Bhd, Hillog Sdn

Bhd and also dividends receive from other investment such as on equity fund, fixed assets,

ASSAR and also on their housing projects.

1.1 BACKGROUND OF STUDY

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As this study is on analyzing the sales performance, ratio analysis and also comparative index

analysis are used as the tools to show the differences over the years by using ratio such as

asset utilization ratio and also profitability ratio. The trends are analyzed and relevant comments

are given in order to identify the problems that affect the level of sales for STIDC. The chart

below shows the financial performance of STIDC for the last five (5) consecutive years, 2004

until 2008. The trends to be focused are on the level of Sales (Blue label).

YEAR

Year 2004 2005

Revenue 46,493,661 72,701,289

Year 2005 2006

Revenue 72,701,289 48,578,934

Year 2006 2007

Revenue 48,578,934 83,075,380

Year 2007 2008

Revenu

e

83,075,380 65,479,525

Based on the chart, the company sales in 2004 was RM46, 493,661 and the amount increased

by 36.05% in the year 2005. Meanwhile in the year 2006 the sales dropped to 49.66% before it

doubled their revenue where it increased by 41.52% in the year 2007. Again the sales dropped

by 26.87% making the revenue RM65, 479,525 in the year 2008. The downward and upward

trends of STIDC revenue are shown in the findings of the study.

This chart somehow clearly shows a sign of problems for this case study to be carried out as the

graphs shows the revenue (sales) for STIDC fluctuated over the years. Perhaps, by identifying

the problems and issues related might increase the amount and revenue (sales) that might

generate the company in terms of profitability in the future.

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46,493,661

72,701,289

48,578,934

83,075,380

65,479,525

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

2004 2005 2006 2007 2008

REVENUE(SALES)

YEAR

TRENDS OF STIDC SALES PERFORMANC

SALES OF STIDC


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2.0 PROBLEM IDENTIFICATION

The level of sales generated by STIDC in this 5 years analysis had shown an upward and

downward trend over the years. As this paper only focuses on the STIDC Corporation income

statement and balance sheet, the sources of revenue or income for STIDC are mainly from the

timber premium, interest income from fixed deposits, registration fees, management fees,

services and the dividends that they receive from their subsidiaries especially from Harwood

Timber Sdn. Bhd, STIDC Belian Holdings Sdn Bhd and Hillog Sdn Bhd. As timber resources are

limited, the amount received on timber premium were also decreasing as the number of timber

available continue to diminishing year by year and this might affect their level of revenue for

each year. Due to this matter, STIDC might face problems for them to sustain in the future and

this lead them to be involved in projects such as developing houses in order to generate

revenue for the company in order to increase their interest income on fixed deposits. However,

as STIDC make an investment on project such as building houses, the investment still does not

generate a lot to the level of sales for the company as they have to use their interest income on

fixed deposits to finance their projects while waiting for the government to give them grant for

the project that they involved in. The amounts of grant given by the government are usually not

paid in full amount of their investment value and due to this it will eventually affect their cash

flow and level of sales. Other source that affects the level of sales is on overestimated budget

on the registration fees that is on the renewal of license and fees for new set up factory who

involves in manufacturing timber products. For example, STIDC aim to achieve a target of

RM10 million on registration fees for the year 2005 in order to increase sales but in the end it

only turn up to be RM5 million. When the amount of fees collected for the year did not meet the

target it will directly reflect the sales amount for the year as registration fees is known to be one

of the sources that can affect the level of sales for the STIDC.

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2.1 OBJECTIVES, SCOPE AND STUDY QUESTION

Objectives

1) To determine the ability of the STIDC to control costs of inventories and to pass along

prices increases through sales.

2) To determine the overall operating efficiency of the STIDC.

3) To determine the level of profitability after consideration of all revenues and expenses of

STIDC.

4) To determine the efficiency with which STIDC uses all its assets to generate sales.

5) To determine the efficiency with which STIDC has been using its fixed assets to

generate sales.

Study Question

1) How capable does STIDC control both of its cost of inventories and to pass along prices

increases through sales?

2) What is the overall operating efficiency of STIDC?

3) What is STIDC level of profitability after taking consideration of all its revenues and

expenses?

4) How efficient does STIDC uses its assets to generate their sales?

5) How efficient is STIDC uses its fixed assets to generate sales?

Scope of Study

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The scope of this study is focusing on the sales performance of Sarawak Timber Industry

Development Corporation (STIDC) headquarters Kuching.

3.0 ELEMENTS CONTRIBUTING TO ISSUE

3.1 LITERATURE REVIEW

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3.2 Firms Financial Position

Financial ratio analysis can help investors in making investment decision and predicting firms

future performance. It can also give early warning about the slowdown of firms financial

condition (Ohlson, 1980).

3.3 Factors Affecting Sales

(Lee, 2010) noted that a poor economy, such as a recession, can cause a dramatic drop in

sales. It is possible that in a severe downturn that no amount of effort will offset the fact that

many customers simply do not have the money to buy. Organizations caught in this situation

may have no choice but to scale back operations or change pricing models and product lines

until the economy recovers. Poor sales forecasting might have been tied to a splashy marketing

campaign that failed, or consumers simply did not take to a new product offering the way

management expected. Or senior management, in a desperate attempt to increase revenues,

may have simply placed unrealistic expectations on the sales team when compared with past

performance. Poor individual performance can also affect sales. Sales people and sales

management must be held accountable for meeting aggressive yet reasonable goals. The

company should go to great lengths to motivate and retain producers, while placing others on

performance-improvement plans with regular reviews and mentoring. A poor sales pipeline can

also negatively impact sales performance. Sales organizations pressured to show immediate

sales often focus on the back end of the sales pipeline--where the deals are closed. However,

that can lead to too little prospecting for new customers. In July 2010, Microsoft cited a survey

of sales managers that said that only one in three of the managers felt that their sales teams

were making enough sales calls to meet revenue goals.

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The role of sales is to stimulate, rather than satisfy, demand for products (Weitz and Bradford,

1999, p. 243). Williams (1998) found that customer-oriented selling strategy leads to the

successful development of relationships with customers and positive impact on sales

performance. Some exploratory work (Beverland et al., 2006; Guenzi and Troilo, 2006; Le

Meunier-FitzHugh and Piercy, 2007b) supports the view that the smooth operation of the sales

and marketing interface is a critical success factor and also established the importance of the

relationship to performance. Homburg and Jensen (2007) suggest that sales staff should play

the role of customers advocate, while marketing promote the interests of products/brand, which

could result in market performance being enhanced as each side strives to improve its position.

3.4 Performance of Sales

During the last two decades, the performance measurement literature underscored some

relevant features and characteristics of performance measures and measurement systems,

which are, must reflect relevant non-financial information, based on key success factors of each

organization (Clarke, 1995); should be implemented as means of articulating strategy and

monitoring organization results (Grady, 1991); should be based on organizational objectives,

critical success factors and customer needs and monitoring both financial and non-financial

aspects (Manoochehri, 1999); must accordingly change dynamically with the strategy (Bhimani,

1993); must meet the needs of specific situations in relevant manufacturing operations, and

should be long-term oriented, as well as simple to understand and implement (Santori and

Anderson, 1987); must make a link to the reward systems (Tsang et al., 1999); financial and

non-financial measures must be aligned, and used within a strategic framework (McNair and

Mosconi, 1987; Drucker, 1990); should stimulate the continuous improvement processes

(Kaplan and Norton, 1992, 1993; Flapper et al., 1996; Neely et al., 1997; Medori and Steeple,

2000); must be easy to understand and to use (Kaplan and Norton, 1996; Ghalayini et al.,

1997); must be clearly defined and have a very explicit purpose (Flapper et al., 1996; Neely et

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4.1 PRIMARY DATA

4.1.1 Face-to-face Interview

The information of this report is gathered through the interviews with the staff who mainly

from the Account and Investment section in STIDC. Among them are Mr. Abang Luqman

Alhakim (Accountant), Mr. Abdul Hatta Sharkawi (Assistant Acountant) who in-charge in

formulate and forecast the annual expected revenue and expenses or known as budget for

STIDC, Mdm. Roslelawati M. Amin who manage the investment activities for STIDC, and

Mr. Juaini Hj Saee (Administrative assistant). Not to forget, the interviews also held with

other workers in the Account section that have been working in STIDC for more than 10

years period. All the information is gathered direct and indirect interview.

4.2 SECONDARY DATA

4.2.1 Journals

Sources of journals those are available in the online database as well as Google search

engine. Such journals have been used are from emerald insight database. E.g. Ghazaleh

Moghareh Abed, Mohammad Haghighi, (2009) "The effect of selling strategies on sales

performance", Business Strategy Series, Vol. 10 Iss: 5, pp.266 282.

4.2.2 Annual Reports

From the company annual reports, the changes and possible problems that might occur

from year to year can be detected. For this issue, the annual reports of STIDC for the year

2004 to year 2008 are used.

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4.2.3 Website

Other than the companys annual reports, the information and data on the company

background and relevant to the issue can be gathered fromwww.sarawak timber.org.my,

www.google.com, www.ehow.com and also pdfcast.org

4.2.4 Books

The other sources usually used are books on financial statement analysis. E.g. Wild, K.R.

(2009). Financial Statement Analysis, Asia: McGraw Hill Higher Education.

5.0 FINDINGS AND ANALYSIS

This chapter discusses on the data that have been collected from the organization mainly from

annual reports and through face to face interview with the workers in Account & Investment

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Year Year Changes (%) Changes

2004 2005 (RM)

Revenue 46,493,661 72,701,289 26,207,628 56.37%


2005 2006 (RM)

Revenue 72,701,289 48,578,934 (24,122,355) (33.18%)


2006 2007 (RM)

Revenue 48,578,934 83,075,350 34,496,416 71.01%

Year Year Changes (%) Changes2007 2008 (RM)

Revenue 83,075,350 65,479,525 (17,595,825) (21.18%)

Financial statements for STIDC level of revenue are available on Appendix 2.

As for the findings, comparative index analysis is used to show the differences of revenue that

STIDC had recorded for the 5 years period. The increase and decrease amount of revenue that

experienced by STIDC are due to several items that affect the level of revenue for each year.

(tell what affect the most to the level of revenue.mainly from timber premium and disposal of

investment)

As to show the revenue of STIDC for the year 2005,2005,2006,2007 and 2008, table 5.2 are

used to highlight the major item that contributed to STIDC source of revenue.

Table 5.2: Source of Revenue for the Year 2007 and 2008 (RM)

Revenue 2008 2007 2006 2005 2004

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Timber Premium 25,471,523 24,356,675 25,386,744 39,994,737 15,321,585

Interest Income 9,104,166 9,996,005 10,414,943 8,460,572 9,295,694

Registration Fees 962,577 703,414 664,065 615,639 704,778

Services 920,883 683,652 665,430 648,744 653,789

Management

Fees 866,726 972,734 1,118,623 1,427,803 1,218,748Dividen income -subsidiaries 378,000 2,808,000 2,942,375 2,233,000 1,472,760

Other investment 10,697,344 9,048,785 6,149,199 9,699,584 8,829,682

Other OperatingIncome 17,078,306 13,760,887 1,237,555 12,086,673 2,026,311

Gain On Disposalof OtherInvestment/ - 20,745,198 - - 932,394

Sales of TMPTZ

Lots - Overtakenup in prior years - - (2,465,463) 3,831,327

Admin Fees OnIncentive Claims 2,206,593

Total Revenue 65,479,525 83,075,350 48,578,934 72,701,289 46,493,661

Table 5.3: Source of Revenue for the Year 2004, 2005,2006,2007,2008. (%).

Revenue 2008 2007 2006 2005 2004

Timber Premium 38.90% 29.32% 52.26% 55.01% 32.95%

Interest Income 13.90% 12.03% 21.44% 11.64% 19.99%

Registration Fees 1.47% 0.85% 1.37% 0.85% 1.52%

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Services 1.41% 0.82% 1.37% 0.89% 1.41%ManagementFees 1.32% 1.17% 2.30% 1.96% 2.62%

Dividen income -subsidiaries 0.58% 3.38% 6.06% 3.07% 3.17%

Other investment 16.34% 10.89% 12.66% 13.34% 18.99%Other OperatingIncome 26.08% 16.56% 2.55% 16.63% 4.36%

Gain On Disposalof OtherInvestment - 24.97% - - 2.01%

Sales of TMPTZLots - Overtakenup in prior years - - (3.39%) 8.24%

Admin Fees OnIncentive Claims 4.75%

Total Revenue 100% 100% 100% 100% 100%

5.4 Timber Premium

The major contributor for STIDC source of revenue is the amount on collection of timber

premium. For the year 2004 STIDC had recorded 32.95% from the overall total revenue and for

the year 2005 STIDC managed to increase their timber premium received to 55.01% by making

it the largest source of revenue that contributed to STIDC within the 5 years period analysis.

However for the year 2006 and 2007, their timber premium received had dropped to 52.26%

and 29.32% in the year 2007. While for 2008, the timber premium received had slightly

increased to 38.90%.

The premiums are collected from the amount of timber trees that are being cut off by the

licensed and registered company who had register themselves under STIDC. Basically, the

prices of the trees are range from RM15 RM20 per tonne. The factors that affect the number

of premium collected are usually due to the economic factors. As for example, if the economic

condition is not good, any company or businesses who engage in the timber products are force

to close down their operation if their production costs are higher than the operating cost. Thus,

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due to maturity of fixed deposits by their depositor, grant that paid by the government and also

interest that they received from the sell of lots especially on their housing projects.

5.6 Registration Fees

As for the registration fees, 2004 had recorded 1.52% from the overall total revenue for the year

as compared to only 0.85% that they received in the year 2005. The registration fees did not

contributed must to the corporation. As for the year 2006, STIDC managed to received 1.37%

for their registration fees, 0.85 for the year 2007 and 1.47% for the year 2008. The revenue

received in the registration fees vary from year to year as its revenue may increase due to the

new number of registration of new companies, new factory, domestic trade, including export and

import activities from all of the business that registered and license themselves under STIDC.

Since stricter rules were imposed, more businesses that involves in timber product registered

themselves legally and the annual fee that they paid every year became the source of revenue

for STIDC every year. Any unregistered companies or factory that did not register themselves

under STIDC will be fine RM300, 000 and additional RM3,000 if they failed to register

themselves with STIDC in the following days.

5.7 Services

In the year 2004, STIDC managed to receive 1.41% of the overall total revenue compared to

only 0.89% in the year 2005. There was a slight increase in the year 2006 which was 1.37%

before it dropped again to only 0.82%. However, STIDC managed to increase their income on

services to 1.41% in the year 2008. The factor that contributed to the changes of revenue

earned every year are from the type of services that they organized such as Industrial training,

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Vendorship Programme which helps to increase and encourage the participant of Bumiputra in

wood based industries, Registration and Licensing which its function is to register and license

every person involved in establishment, manage or operate any mills, manufacturing, sale,

distribution or marketing of timber and timber products, Grading, Export License and also

Resource Development. The revenue from these services was mainly obtained from the fees

that they received from the participant who joined and of the programmed that STDIC had offer

under Section 5A of The Sarawak Timber Industry Development Corporation Ordinance, 1973.

5.8 Management Fees

STIDC also involve in managing any businesses that engage in timber products. Management

fees that are received by STIDC mainly from their management assistance such as providing

guidelines in order to meet the quality standard (MS ISO 9001-2000) in terms of their operating

activities and the standards of their final products. For the year 2004, STIDC had recorded

better revenue on management fees which was 2.62% compared to 1.96% in the year 2005.

For the year 2006, STIDC had contributed 2.30% of the revenue from their management fees

compared to 1.17% in the year 2007. The income from management fees continue to increase

by 1.32% for the year 2008. Part of the revenue of this management fees are then to be

contributed to Sarawak statutory bodies as STIDC are only given the responsibilities by the

Sarawak Government to act on behalf of the timber industry to manage, monitor coordinate and

develop the wood-based industries in Sarawak. The factors that affect the upward and

downward trend of management fees revenue are all depends on the number of business who

need the management assistance and also the number of the programs such as seminars that

are provide by STIDC every year.

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As to show the differences of 2007 and 2008, ration analysis are uses to show the differences

between the two years performance in terms of gross profit, net profit margin, operating profit

margin, total assets turnover and fixed asset turnover.

Table 5.9: Ratio Analysis for the Year 2004, 2005, 2006, 2007 and 2008.

Ratios 2004 2005 2006 2007 2008

Gross Profit Margin 97.26% 100% 100% 96.88% 98.69%Net Profit Margin (5.24%) 31.28% 10.68% 31.13% (9.52%)

Operating Profit Margin 8.97% 53.09% 22.45% 42.22% 18.20%

Total Asset Turnover 0.06X 0.09X 0.06X 0.09X 0.07X

Fixed Asset Turnover 1.28X 1.08X 0.74X 0.93X 0.81X

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Detail information on the calculation of ratio are available on Appendix 2.

STIDC had recorded 100% gross profit margin in the year 2005 and 2006 where for those year

STIDC did not incurred any cost of goods sold for those year. However in the 2004, STIDC had

recorded 97.26% of gross profit margin due to their cost of sales which cost RM1,275,787.

However in the year 2007, the gross profit margin recorded 96.88% since there was cost of

sales of RM2,594,733. This goes the same with the year 2007 and 2008 where the gross profit

margin for those 2 years was 96.88% and 98.69% respectively mainly from their cost of sales

on industrial land and lots sold for the year. On the overall performance, STIDC did show that

they have better control over its cost of inventories in order to increase their revenue from year

to year.

The Net profit margin for the corporation can be analyzed by measuring their overall operating

efficiency. The net profit or loss for the year was mainly affected by the corporation operating

expenditure, finance cost which includes interest expense and also after taking consideration of

taxation from corporation and subsidiaries. Every year, the increase and decrease in

percentage recorded by STIDC usually due to their high cost of operating expenditure. Since

STIDC had incurred net loss of RM2,434,644 in the year 2004, it directly affected their net profit

margin to be negative 5.24%. However, in the year 2005 STIDC had recorded the highest net

profit margin which was 31.28% compared to the year 2006 which only recorded 10.68%.

Due to those matter, STIDC has shown a decrease in their level of profitability which is (9.52%)

of compared to 31.13% in the year 2007. Due to high spending on the operating expenditure

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which was RM51,708,046 in the year 2008, this figure directly affected the profit for the year by

making the corporation to incur net loss of RM6,237,386 for the year 2008 if compared to the

year 1007 which was rm25,859,334.

The Operating profit margin of the corporation can be measure by analyzing the level of

profitability after consideration of all revenues and expenses. From the huge spending on the

operating expenditure, it is clearly that the figure had created an impact to the profits from

operation of the corporation. Due to the increase of its operating expenditure, the level of

profitability for STIDC in the year 2008 directly dropped to 16.67% compared to 38.03% in the

year 2007.

In term of total asset turnover, the corporation has shown a decrease in their total asset

turnover which was 0.9 times in the year 2008 and 0.7 in the year 2008. This indicate that

STIDC might have problem in their inventories such as holding obsolete inventory , too long

collection period that affects their account receivables and not fully utilize their assets in order to

generate revenue for STIDC may results in lower asset turnover.

However in term of fixed asset turnover, STIDC has been less efficient in using their fixed

assets to generate sales for the corporation which was only 0.81 times in 2008 compared to

0.93 times in the year 2007. This shows that the corporation has not fully utilized its fixed asset

in the year 2008. Their fixed assets are include land and buildings, transportation such as motor

vehicles and aircraft, plant and machine, leasehold of lands that includes short term and long

term leasing.

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6.0 RECOMMENDATION

The following recommendations are based on the sources of revenue that affect performance of

STIDC. It is suggested that STIDC should implement new strategies to have better

management on the forest in order to protect their timber resources from diminishing in the

future. It is suggested that STIDC should apply the enzyme technology especially in the pulp

and paper manufacture. This can be done by starting to plant on tree genetics or known as

biotechnology that will offers the possibility to resolve the increased demands on forest

resources through the development of trees in order to protect from diseases, pests, and

chemicals, which have a negative impact on forest health. In order to increase the number of

timber premiums every year, planting of trees such as Paulownia trees, Empress trees is

advisable since it takes shorter time to mature which is 6 years if compared to local timber trees

such as Meranti, Nibong, Belian which normally matures in 10 to 15 years. By having trees that

mature in shorter time period, this will directly increase the volume of timber resources and

eventually will result in smaller volume of trees to be cut in a year.

The use of advance technology such as GLOBAL POSITIONING SYSTEM (GPS) & geographic

information system (GIS)also plays important roles for the corporation to manage their timber

resources and at the same time to increase to efficiency and the effectiveness of their workers

especially those who involve in the timber inspection. This can be done by having handheld

device such as an Ipad which can help them to access the data and send the information

directly to headquarters for reports or checking. By doing this, it might help the employees to

accurately plot location data (latitude, longitude, and altitude) for use in calculating timber

volume, surveying timber plots and mapping roads and features in the forest. This data also

combined with other geographic data that might helps officers to accurately manage modern

forests by monitoring activities that are done in the field.

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Meanwhile in term of operating expenditure, every section in STIDC should control and monitor

their budget rather than only depending on the Account section to do so. This can be done by

having the same budget system that is use in the Account section.Furthermore,budget should

be allocate properly by giving priority to those sections who contribute the most to the operating

income such as the Industrial Planning, Project development, Registration & Licensing ,

Account & Investment, North Region and Middle region.

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6.1 CONCLUSION

This study is on analyzing the sales performance of Sarawak Timber Industry Development

Corporation. Primary data were collected by doing face to face interview with the employees

from the Finance and Investment Section. Secondary data such as annual report of STIDC and

information on their website are also used in other to gather the information especially on the

financial reports. This study is also highlighted on what are the items that affect the level of

revenue of STIDC for each year. Other than that, this study also investigate on the reasons and

factors that contributed to the changes of revenue in the timber premiums, interest income

received for each year, management fees, registration fees and also services that they offered

in order to increase the level of performance in term of sales or revenue for the corporation.

Financial ratios are used to measure the profitability of the corporation. This is in line with

(Ohlson, 1980) Financial ratio analysis can help investors in making investment decision and

predicting firms future performance. It can also give early warning about the slowdown of firms

financial condition .

The conclusion of this study can be drawn based on the findings of the study. As shown from

the findings, the timber premium is known as the major contributor for STIDC as it contribute the

most to the total overall revenue for STIDC every year. However, the collections on the timber

premiums are easily vary in amount every year since timber resources are limited from time to

time and also might get affected by other factors such as economy factors such as exchange

rates that can change the value of timber price per tonne. This also goes the same to the

interest income that the corporation received where it is also affected by the economic factor

such as interest rates offer by banks. Other than that, the services and fees are all depends on

the activities and programs that STIDC organized to all of the registered businesses that involve

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in timber industry such as companies, factories and other export and import activities that pay

their fees every year that help to generate STIDC source of revenue.

As for the conclusion, STIDC should take consideration to all of its sources or revenue and all

the factors that might affect their timber industry. The backup plans other than only depending

on their timber premium were also needed due to the concern of timber resources might

become limited in the future. Other than that, a good long term relation in investment with their

subsidiaries and continuation on development projects are also important in order to help

STIDC to maintain or increase their level of performance of sales in the future rather to only

depend on their timber premium that they received every year.

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Edited Research Final

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