Scrap metal dealers in Sabah are up in arms against the appointment of Superpanel Sdn Bhd, a government-linked company, as the sole exporter of scrap metal and recyclables in the state beginning today.

"We don't know how we are supposed to work with this company," said Jennifer Hiew, the president of the newly-registered Sabah Scrap Metals and Recycling Association (SSMRA), which has 46 members.

She also warned that the association would not hesitate to seek legal redress if the state government is not more forthcoming on the role of Superpanel.

The gist of SSMRA's arguments is that the state should not compete with the legitimate business activities of the private sector. "The rampant theft of metal in the state is a flimsy excuse to thrust Superpanel on us," said SSMRA secretary-general Eddie Tan.

scrap metal besi buruk 011108 "Can Superpanel guarantee that there would be no more scrap metal thefts in the state from today (Nov 1)?"

The new restrictions come at a bad time for scrap metal dealers, as prices of scrap metal and recyclables have plunged as much as 60 percent, from RM1,400 per metric tonne to below RM500, according to Tan.

"The time is bad now, in the wake of the global financial crisis, that some of our major buyers in Peninsular Malaysia and overseas have decided to cease operations," said Tan.

"The majority of us are now barely making ends meet to cover our daily expenses, including servicing our bank loans.

"If we wind up our business, not only will our own families be affected but also our workers. Will the government and Superpanel take care of all of us?" he asked.

A meeting on Oct 28, arranged by the director-general of Kota Kinabalu City Hall, Datuk Dr Chua Kim Hing, reportedly failed to shed any light on the matter as Superpanel was unable to provide any detailed information of its set-up and operational procedures.

Company waiting for directive

Apparently, the company is still waiting for further directives from the state government on how to go about dealing with scrap metal dealers.

Superpanel's appointment follows a state government decision on Aug 6 to resolve the rampant theft of metal in the state. Superpanel is a wholly-owned subsidiary of the Sabah housing and town development authority, which is under the ministry of local government and housing.

All local authorities were directed by the state government on Sept 26 to stop renewing existing trading licences or issuing new ones to scrap metal businesses. From today, all such applications must first be registered with and approved by Superpanel.

Late last year, a group of SSMRA members submitted a 19-point memorandum to the state government, suggesting ways to tackle the problem of rampant metal theft in the state.

The government's response was to set up Superpanel, reportedly without any reference to those who submitted the memorandum.