Nine associations in the paper industry had warned the Ministry of International Trade and Industry on the implications of imposing a seven percent duty on imported paper from non-Asean countries.

Spearheaded by the Selangor and Federal Territory Chinese Printing Presses' Association, they filed a complaint with the ministry on March 30 via a letter.

They said the move would affect the printing and publications, educational, paper, advertising and government sectors.

The import duty, which came into effect on July 29, is on uncoated paper which are used for textbooks, exercise books, photocopying, brochures and a range of other publications.

In view of this, the associations told the ministry that consumers, especially students, would be adversely affected as textbooks are price-controlled items and there are about 5.6 million students in Malaysia already spending an average of RM200 on books amounting to around RM 1.12 billion a year.

Multiplying effect

"The import duty will have a multiplying effect as retailers will eventually have to raise their books prices as paper brought in since the end of last month cost more," said paper trader FL Heng when contacted today.

According to some in the industry, printers are forced to hike their charges as the price of paper has increased considerably in the past few weeks.

"As the old stock runs out, retailers will have to start charging customers higher prices as printers and publishers have already begun to bear the burden of the hike in paper prices," said a veteran printer who wished to be known only as Thomas.

According to the letter, Sabah Forests Industries (SFI) Sdn Bhd had petitioned for the import duty.

SFI, which began its commercial production of paper in 1988, produces 150,000 metric tonnes of printing and writing paper annually for both the international and domestic market.

Fifty-five percent of its products, about 82,500 metric tonnes, sold in Malaysia include exercise book papers, computer form papers and drawing paper.

When contacted, its marketing manager for West Malaysia Chook Ka Wah confirmed that the company "submitted the application to the government" but refused to comment on the reasons behind the move and how it would benefit Malaysians.

The printing associations claim that imports of paper for the past three years is estimated at 500,000 metric tonnes.

Attempts to contact Dewan Bahasa dan Pustaka Publications Director Anwar Ridhwan to check on the status of book prices now proved futile.