The Malaysian Quarries Association is urging the Selangor State Forestry Department to increase the period and duration of minor licenses that would allow the companies to continue to operate their services in the construction industry.
The current short term licenses require quarry operators for license renewal on a monthly basis whereby the previous quarry licences were awarded with six-month duration.
The monthly licence renewal would add to delays due to added red tape due to monthly disruption according to MQA president Teh Quen Chang. He further added that the quarry products provide the materials needed for various construction projects in the country.
Currently, 8 MQA members are affected by the new licencing procedures that are operating in forestry land in Selangor.
The MQA is urging the Selangor State Forestry Department to increase the period and duration of the minor licenses to a minimum of 1 year to provide stability and security for MQA members. The one year period will enable members to execute long-term plans, replant trees, as well as invest in equipment and operations.
The Malaysian Quarries Association, which represented more than 80% of the quarry operators in Malaysia. MQA members consist of SMEs with Malaysian and international companies.
The association is also concern that the recently introduced Profit Sharing Contract (PSC), under the Production Sharing Contract also points out that 60% of the profit is taken by the government. The MQA members are also asking the Selangor State Government to justify the need for increased revenue.
Teh said that the association was never informed on the changes in licensing procedures but its members are accusing the state government of applying pressures on them because they rejected the state’s new profit sharing proposal for quarries in Selangor.
Quarry operators pay the State Forestry Department RM2.67 per tonne of material and RM2 per tonne to the Selangor government. The royalty payments in the Selangor state has increased in the last 2 years with the Land Office with a paid per tonne of materials sold by 74% while royalties to the Forestry Department by 125%.