GEORGE TOWN, Aug 10 — The Penang state legislative assembly today approved an amendment to the Wood Based Industries Enactment 1986 to increase penalties under the Bill.

The amendment added provisions for anyone who sets up wood-based industry factories illegally to be subjected to a fine of not more than RM50,000, or imprisonment of not more than five years, or both.

It also added a provision for anyone who abetted in the setting up of illegal wood-based industry factories to be subjected to a fine of not more than RM25,000, or imprisonment of not more than two years, or both.

In proposing the motion to amend the enactment, Phee Boon Poh (PH - Sungai Puyu) said Penang has 97 licensed wood-based industry factories while 185 factories are being legalised.

"This amendment to the enactment is to address the issue of illegal wood-based industry factories and the penalties under this enactment were too little,” he said.

He said the enactment did not have provisions for compounds for minor offences.

"The proposal for this amendment is to put in place provisions of a heavier penalty, expand the deposit payment and increase the wood-based industry license deposit,” he said.

The amendment will also include provisions for compounds to be issued for minor offences under the enactment.

When debating the amendment, Gooi Hsiao Leung (PH - Bukit Tengah) said the wood-based industry is a large one that included many furniture factories in Penang.

"Penang contributed 20 per cent of the wood-based furniture exports in the country,” he said.

He proposed that a task force be formed for better private public sector collaboration to assist the wood-based furniture industry.

Meanwhile, Khaliq Mehtab Mohd Ishaq (PH - Bertam) voiced his support for the amendment as the introduction of provisions for compounds meant minor cases need not be brought to court which will incur more costs.

"Furthermore, if compounds were issued, the funds collected will go towards the state government but if it was brought to court, the fines ordered by the courts will go towards the federal government,” he said.

The Wood Based Industry (Amendment) Enactment 2018 was unanimously approved by the legislative assembly today.

Last year, controversy surrounded an illegal wood-based industry factory in Sungai Lembu, Bukit Mertajam which led to Phee being hauled in by the Malaysian Anti-Corruption Commission (MACC) for questioning over the issue.