SAPULUT FOREST DEVELOPMENT SDN BHD

PUBLIC SUMMARY OF

PLANTATION DEVELOPMENT

PLAN (PDP) 1st JANUARY 2016 - 31st DECEMBER 2025

Sapulut Forest Development Sdn Bhd (57757-K) Lot 2-2, 2nd Floor, Wisma Manikar, Lorong Manikar 1 Off Mile 2.5, Jalan Tuaran Likas 88400 Kota Kinabalu, Sabah, Malaysia Tel: +6088 – 276 828 – 31 Fax: +6088 – 276 663 Website: www.sapulut.com.my

1st Draft

DRAFT

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Information of Licensed Area

Company : Sapulut Forest Development Sdn Bhd (SFDSB)

Forest Management Unit : 14

Size of Area : 21,970 ha

Location : Part of Sapulut Forest Reserve (Class II)

Jurisdiction : Tibow Forestry Department, Keningau

Co-ordinates : Latitudes : 4o 32.5’ and 4o 49 North

Longitudes : 116o 27’ and 116o 54’ East

Agreement : Sustainable Forest Management License Agreement No.

04/97

(SFMLA 04/97)

Contact Person : Mr. Norman Wong (Managing Director)

Email : mdoffice2013@gmail.com

General Locality Map of FMU 14

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Chapter 1 - Introduction

General Background

In the past, repeated and bad logging practice within the Sapulut Forest Reserve (FR) has made

the forest poor in terms of timber productivity, standing timber stock as well as regeneration. This

was the condition of the Licensed Area before it was handed over to SFDSB in 1997, to be

managed based on Sustainable Forest Management (SFM) principles. SFDSB signing the

Sustainable Forest Management Licensed Agreement 04/97 (SFMLA 04/97) in September, 1997

with the State Government of Sabah, with a total area of 95,300 ha.

i. 1st FMP (1st January 2004 - 31st December 2013).

The SFMLA 04/97 or called as Licensed Area of 95,300 ha, was managed by SFDSB based on the 1st

FMP. It was first approved on 2nd December 2003. Later, it was revised and approved on 20th

December 2004.

ii. 2nd FMP (1st January 2014 - 31st December 2023) - approved on 16th December 2016.

Based on the First Supplemental of SFMLA which was signed on 21st February 2014,

approximately 7,644 ha of the Licensed Area were excised and converted into a Class 1 Protection

Forest Reserve which is now known as Maliau Buffer Zone Forest Reserve. The excised area has

been placed under the Maliau Basin Management Committee (MBMC) which includes SFDSB as a

new member of the Committee. The 2nd FMP was prepared to replace the 1st FMP with the total

remaining Licensed Area of 87,656 ha.

iii. 3rd FMP (1st January 2016 - 31st December 2025) - approved on 17th March 2017.

Subsequently, second supplementary agreement was signed on 3rd November 2015, where

approximately 11,043 ha of the Licensed Area was excised for the purpose of socio economic

development of the State. The new 3rd FMP is necessary to incorporate changes in land use of the

Licensed Area and update the prescribed activities for the management. It is prepared under the

guidance of the Sabah Forestry Department (SFD). The remaining Licensed Area in the 3rd FMP is

now 76,613 ha.

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Summary of net Licensed Area before and after the excision

Forest

Management

Plan (FMP)

Total Excised

Area (ha)

Total

Licensed

Area (ha)

Remarks

First - 95,300 Before Act of the State Legislative

Assembly on 29th March 2012.

Second 7,644 87,656 Turned the excised area into a Class 1

Protection Forest Reserve following the

First Supplemental of SFMLA 04/97 on

21st February 2014.

Third 11,043 76,613 The excised area was made to pave way

for socio economic development on 3rd

November 2015 based on the Second

Supplemental Agreement.

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The 2nd PDP has number of significant changes, some of which include the following:

⚫ Excision of 11,043 ha from ITP compartments to pave way for the socio economic

development of the State, in addition to 7,644 ha that been excised in the 2nd FMP for the

establishment of Maliau Buffer Zone Forest Reserve (Class 1).

⚫ Adoption of Buffer Alternante Strip Planting (BASIL) system in the entire ITP areas, as a

replacement of clear felling of traditional forest plantation

⚫ Subscribe to log-fisher and adoption of yarder harvesting system as our harvesting technique.

Policy Statements and Management Objectives

As a licensee, SFDSB is committed to manage the Licensed Area in accordance with the terms and

conditions as stipulated in the SFMLA 04/97 and conform with the principles of sustainable forest

management as prescribed by the Forest Stewardship Council (FSC) and the Malaysian Criteria

and Indicators (MC&I) of the Malaysian Timber Certification Council (MTCC) and all existing State

forest policies, environmental policies, legislation and regulations, as follows:

⚫ Ensure the sustainable management of the forest resources over the long-term in order to

provide optimal benefit and financial return for the Company, as well as, the Socio-economic

benefits to the state;

⚫ Recognize that environmental protection is given due consideration in all the company’s

business operations so as to minimize any negative impact on the natural environment;

⚫ Ensure the SFM commitment is integrated with other key business objectives of financial

performance, operating efficiency, customer satisfaction, health and safety and good

corporate citizenship;

⚫ Ensure that our business partners, contractors and employees are committed to the

Company’s SFM Policy.

⚫ Work in partnership with other business organizations, the Government and interested

groups where opportunities exist to benefit both our business and the environment.

⚫ Protecting the Licensed Area from illegal activities, such as encroachment, hunting, felling

and fires, to enhance the safe, sound and responsible management of forest for future

generations.

Overall objective - to ensure the perpetuity of the Licensed Area as a plantation and natural

resource, which is managed to balance a variety of uses and values in an ecologically sustainable

manner.

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Specific objectives -

For over 10-years planning:

a) To established industrial tree plantation in the highly degraded areas in order to enhance the

productivity and economic forest values while at the same time, to relieve pressure to use

the remaining natural forests as a source of timber supply for local industries in the State;

b) To ensure that the area is managed sustainably in order to provide

optimum continuous supply of high quality timber and other wood products

based on the application of Environmentally-Friendly practices;

c) To maintain or enhance the trees growth of planted and natural

regeneration, and health of the forest ecosystems through active intervention

management such as, enrichment planting and silvicultural treatment,

monitoring, prevention, and suppression of destructive forest agents especially fires,

pests, etc.

d) To provide employment opportunities to the local communities especially those living

adjacent to the licensed area through forestry related activities; and

e) It is envisaged that the ITP areas will be certified in by 31.12.2019.

Chapter 2 - General Information

Meteorology

Rainfall - The Licensed Area is located in one wettest parts of Sabah with an average annual

rainfall of 3,000 mm with a very broad variation, from a minimum of 13.7 mm in January 2006 to

a maximum of 1959 mm in August 2010.

Temperature - The temperature at the Licensed Area is between 25oC and 30oC for day time and

18oC and 20oC for night time.

Relative Humidity - The average annual relative humidity at the Licensed Area ranges from 66.3%

to 72.0%.

Wind - The wind is predominantly southerly and the speed ranges from a low of 0.3 m/sec to a

high of 3.4 m/sec.

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Sunshine and Solar Radiation - On the average, Sabah receives about 6 hours of sunshine per day.

Solar radiation is closely related to the sunshine duration. Its seasonal and spatial variations are

thus very much the same as in the case of sunshine.

Evaporation - The air temperature at the Licensed Area is lower with evaporation rate of about

2.5 mm/day.

Geology and Soil

Geology - The Licensed Area is formed of mainly the Sapulut, Tanjong and Labang Formations.

Small area to the southeast corner of the Licensed Area is derived from Kapilit Formation.

Geology Formation

Formation Parent Material

Sapulut Sandstone, siltstone, mudstone, conglomerate and limestone.

Tanjong Sandstone, siltstone, mudstone, conglomerate, minor limestone and

lignite.

Labang Sandstone, siltstone, mudstone and limestone.

Kapilit Sandstone and mudstone with rare beds of coal, conglomerate and

limestone.

Soil - The main soil associations found in the Licensed Area are Lokan (43%), Crocker (35%) and

Maliau (16%). Pockets of Labau, Kalabakan, Serudong and Gomantong associations are also found.

These associations are generally associated to the geological land form of the area.

Topography

The topography of the Licensed Area is undulating with ground elevations between 200 to 1,200

m above mean sea level (AMSL).

Hydrology

The FMU 14 natural landscape vary from low hills and undulating terrain in the lowland and steep

an dissected in upland and montane region. Tributaries that could be affected include Sansiang,

Saburan, Siliawan, Tibow, Palagan, Sabunutan, Beliar, Lambunaan and Sablangan. All these

tributaries joining Sapulut River and finally to Kalimantan. A tributary of Pinangah River originated

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from the nothern part of the FMU will flow to the Kinabatangan River. The largest minor

catchment is Sansiang River and followed by Saburan and Salung rivers.

Current Vegetation Cover

Generally it can be categorized into two classes, the old growth forest with various disturbance

stages and secondary growth vegetation. The vegetation are very much affected by previous

conventional logging activities before the introduction of sustainable forest management.

Forest Ecosystems

The FMU area comprises of mixed dipterocarp forest, mixed dipterocarp and kerangas forest,

kerangas forest, lower montane forest and secondary vegetation.

Flora and Fauna Diversity

Flora - Ten most speciose plant families within Sapulut FR are Dipterocarpaceae, Euphorbiaceae,

Lauraceae, Annonaceae, Fabaceae, Orchidaceae, Rubiaceae, Phyllanthaceae, Meliaceae and

Myrtaceae. During the recent High Conservation Value (HCV) survey, data retrieved from plant

database (BRAHMS) and other research plots, a total of 442 taxa (identified to specific and

infraspecific level) were recorded from Sapulut FR, where 112 plant species are endemic to

Borneo, including 23 to Sabah but none is endemic Sapulut FR.

Fauna - Sapulut FR has a diverse and abundant wildlife population. However, logging activities in

the past may have somehow affected and altered its natural habitat to a certain extent. The

situation in the Licensed Area is no exception. A wildlife survey was carried out by

HUTAN-Kinabatangan Orang-utan Conservation Programme (HUTAN-KOCP) in December 2011

and had recorded 10 mammal and 57 bird species. The data procured from the survey served as

the baseline information for further wildlife research and monitoring in the future. Several totally

protected species are known to exist within the Sapulut FR including the Borneon Pygmy Elephant,

Borneon Orang-Utan, Tembadau, Malayan Sun Bear and Sumatran Rhinoceros, in view of close

proximity to Maliau Basin Conservation Area and Kalabakan Forest Reserve. Based on the report

from Sabah Wildlife Department, it is very likely that many animal species move between these

forest reserves and share similar wildlife species.

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High Conservation Value Forests

The HCVs assessment findings that all HCVs are present in FMU14. These include, HCV 1.1 – 1.3

(Species Diversity), HCV 2 (Large landscape-level Ecosystems and Mosaics), HCV 3 (Ecosystems

and Habitat), HCVF 4.1 and 4.2 (Ecosystems Services), HCV 5 (Community Needs), and HCV 6

(Cultural Values). The impacts of Forestry activities and surrounding land-use changes are critically

evaluated and form the basic for development of management prescriptions. For retaining the

functionality of these HCVs, the recommended prescriptions, among other, are establishment of

buffer zones and demarcation of the area surrounding the HCV, protection from the potential

threats, monitoring, patrolling, etc., and underline the crucial needs for managing the whole FMU

at the landscape level.

Summary of HCVAs and HCVMAs in FMU 14:-

HCV Element Compartments Land use Area (ha)

1 Buffer zones protecting Pas

- Batu Punggul FR & Sungai Sansiang

207, 208 & 220B

ITP

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Critical use habitats

- Batu Saap

- Salt Lick

- Arboretum pond

197B

218A

167

ITP

ITP

31

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6

RTE flora

- Batu Saap

- Rafflesia

- Kerangas 1

- Salt lick

197B

192, 218A

189

218A

ITP

ITP

ITP

ITP

As above

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48

As above

3 Kerengas Forest

Limestone vegetation

- Batu Saap

Lowland MDF on Labau Soil

146 & 189

197B

127,129,130,

140

ITP As above

As above

312*

794±

4 Steep Areas

Riparian bufferᵃ

Numerous (See

Figure 4.8)

ITP

ITP

276

914

5 Water Catchments As 4.1 As above As above

6 Burial site 192 ITP 1

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HCVMAs

1 RTE Fauna all ITP

* Area containing infrastructure (roads, nursery, forestry HQ) needs to be subtracted.

± Area that has already been developed into ITPneed to be subtracted.

ᵃ This is calculated for a 30-mwide buffer on major river only, and underestimates the extent of

the riparian buffers in FMU14.

The result of HCV pre-assessment shows that four out of six major values confirmed to be present.

The management prescription emphasizes the maintenance and even enhancement consistent

with the precautionary approach to minimize the risk of irreversible loss of the identified critical

environmental and social values, which the main options are protection of critical values,

modifications or constraints on operations, enhancement efficiency and effectiveness and

restoration.

A summary of the Management and Monitoring strategies for the HCVs identified above are presented in the below Table. Management and Monitoring for the HCVs

HCV Attribute Threats Management Strategies Monitoring Strategies

1 Species diversity

Protected Areas Encroachment Fire Forestry activities

Demarcate a 100-m wide buffer adjacent to all protected areas within the ITP zone

Regular ground monitoring of the buffer zones

Spatial and temporal concentration of species

Encroachment Fire Forestry activities

Demarcate a 100-m buffer zone around each of these area Identified and retain Hornbill nest trees and areas with high densities of strangler figs and ensure an appropriate buffer is delineated

Regular ground monitoring of the buffer zones

RTE Flora Encroachment Fire Illegal harvesting Forestry activities Invasive plant species

Demarcate a 100-m wide buffer around areas with high concentrations of RTE flora - Batu Saap (Compartment 197B), Kerangas 1 (Compartment 189) and Salt lick (Compartment 218) Demarcate a 100-m wide

Ground monitor the boundary of these areas to ensure no encroachment Record presence of invasive plant species within these HCVAs Monitor population

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buffer around Rafflesia populations (e.g. ITP compartment 192 and 218A) the Lower Montane areas of FMU 14 to identify area with high concentrations of RTE flora.

of Rafflesia within these designated HCV areas Establish and monitor seedling plots to assess regeneration of RTE timber species

RTE Fauna Encroachment Fire Hunting Road kills Forestry activities

Install signage at the major entry points to FMU 14 that indicates the applicable punishments and fines for illegal hunting Develop a SMART-based enforcement plan; patrolling carried out frequently as specified in the plan; Remove all dogs from within the FMU Conduct community outreach programs to increase awareness on conservation and the need to conserve RTE species Retention of nest trees utilized by hornbills; Enrichment plant of figs in the riparian buffer and steep areas within the ITP area Retain woody climbers within riparian buffers and steep areas

Patrolling carried out frequently and as specified in the SMART plan Monitoring of RTE species sensitive to forestry activities using distance sampling and potentially camera traps. Initiate a road kill monitoring program

2 Landscape- Level Ecosystems and Mosaics

Encroachment Fire Infrastructure development Forestry activities

Retention of riparian buffers as HCVAs and adoption of low impact forestry practices i.e. BASIL to maintain connectivity Consult with relevant stakeholders and experts about mitigating the impacts of proposed infrastructure development.

Drone-based monitoring to assess changes in forest condition/health. Ground monitoring of the buffer zones

3 Ecosystems and Encroachment Demarcate the areas with Ground monitoring

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Habitats Fire Forestry activities

lowland Kerangas forest (compartment 146 and 189) and Limestone vegetation (Batu Saap: compartment 197B)

of these HCVAs. Drone-based monitoring to assess changes in forest condition/health. Monitor stand dynamics in restored areas.

4 Ecosystem Services

Erosion control Encroachment Fire Forestry activities

Demarcate all areas greater than >25° and cover an area of more than 2 ha. Demarcate all riparian buffers. Rehabilitate areas which are heavily degraded

Monitor the boundary of these areas to ensure no encroachment. Monitoring of riparian forest quality using the QBR Sabah rapid assessment protocol. Monitor stand dynamics in restored areas.

5 Basic needs of local communities

Encroachment Fire Forestry activities

Demarcate the entire catchment. Rehabilitate areas which are degraded

Ground monitoring of these HCVAs Drone-based monitoring to assess changes in forest condition / health. Monitor stand dynamics in restored areas.

6 Cultural identities of local communities

Encroachment Forestry activities

Demarcate the burial ground and a 50-m buffer (Compartment 192)

Ground monitoring to ensure no encroachment of this HCV

Current Infrastructure

Existing infrastructures within the FMU area includes roads, buildings (Base Camp and Forestry

Complex) and other facilities consists of 8 detached Rubber Tapper quarters (Rubber Village) and

two fire towers. The base camp is where the administrative building and basic infrastructure

facilities are located. The Forestry Complex is a new infrastructure facility to provide good

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working environment in the Licensed Area, constructed in 2010 but yet to complete. As of 2013,

facilities available in the Forestry Complex are an office with conference room, 1 clubhouse

equipped with clinic, guest rooms, gymnasium and lounge, and living quarters.

Social Impact Assessment (SIA)

SIA is an important and the most commonly used social assessment tool to determine the

presence, status, influence and possible impact of SFDSB operations on the local community. Two

SIA study were conducted by Kiwiheng Wood and Environmental Consultant Sdn Bhd in 2010 and

SFDSB staff in 2015.

Sapulut FR area located in the district of Nabawan/Pensiangan where Murut Tagol ethnic group

represents the majority of the Bumiputera group and they focused on agro-based activity.

There are no village or human settlement within the FMU 14 area. Major human settlements are

located mainly east and southeast of FMU 14, within the state land along Sg Sapulut, Sg

Pampangon and Sg Logongon, namely Kg Bangau, Kg Salarom Taka, Kg Samuran, Kg Sinsingon, Kg

Manduluh, Kg Nalasaran, Kg Kaingalan, Kg Salangon, Kg Pulutan, Kg Saliku, Kg Sabulu, Kg Agis, Kg

Tikandis, Kg Bulait, Kg Balantos, Kg Sinikalaun, Kg Sosogoh, Kg Kuyoh, Kg Sikait, Kg Sabinait and Kg

Sumolombom. In the eastern area of FMU 14, human settlement is limited to Jabatan Perhutanan

Tibow which is provided with main office and staff quarters.

In the immediate surrounding of SFDSB licensed area, it was bordered by Bornion Timber Sdn Bhd

and Indah Serimas Sdn Bhd to the north, Maliau Basin Conservation Area to the northeast, Expo

Utama Sdn Bhd to the southeast, Top Quantum Sdn Bhd and Zillion Fortune Sdn Bhd to the south;

and Idris Hydraulic Sdn Bhd and Jawala Plantation Industries Sdn Bhd to the southwest.

There are tourism attractions located within and in the vicinity of the FMU 14 area including Batu

Saap, Batu Punggul and Batu Tinahas. These sites are gazetted as archaeological site except for

Batu Saap which located within the FMU 14 area.

Population and Demographics

Majority of the population is Bumiputera origin of Murut community. Their education level was

typical for a rural area with 49% of the population had attained secondary education and mainly

involved in agriculture as a farmer. The population economic level is considered as low with

majority having incomes of less than RM 500 per month.

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Majority of the population relies on water pipe system for drinking purposes while others obtain

from the rain and rely on river water. However, during dry periods, they will obtain water directly

from local rivers for daily water use.

Though electricity connectivity has improved for the last ten years, there are more than half

respondents (55%) have no proper electricity.

Telephone line connectivity is getting better with 44% of the respondents have received good

service.

Main roads within the study area are the existing logging road. The primary mode of

transportation is by private (illegal) van, 4WD vehicle and private taxis. Car ownership is very low.

All roads within the settlements are in need of maintenance.

Existing Socio-Economic Problems

Problems reported were lacks of employment opportunities, development, land allocation to

them for the whole communities and future generation, and infrastructure such as electricity and

water supply.

Public Perception and Acceptance of the Proposed Project

Majority of the respondents agreed with the existing SFDSB’s operation. Those who agreed stated

that the project may (i) create more employment opportunities; (ii) improve social facilities and

economy of the surrounding areas and (iii) provide good network of roads. Other positive impacts

were improve the infrastructure facilities, population health, image of the area and quality of life

environment.

As for those who disagreed to the project are mainly concerns more on the river water pollution.

Some of those disagreed imposed reasonable conditions mainly related to the requirements of

clean water supply, either in the form of water storage facility or protection of water catchment

areas. Others highlighted on increase in road traffic, dust and safety among other road users and

in-immigration of foreign labour that might cause social problems.

Management Implication of the SFMLA

The aspect of local population indeed provides several management implications to the SFMLA.

Issues that need to be deal with are:

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a) Encroached Area - Three areas have been identified and inspected as being encroached by

the farming local communities. SFDSB will resolve this case according to the present rules

and regulations with the guidance and assistance of the SFD.

b) Hunting and Other Illegal NTFP Extraction - Hunting and other illegal NTFP extraction (such

as medicinal plants, gaharu, rafflesia, orchid, jungle fruits, handicraft plants and other) are

difficult to control due to close proximity to Sapulut-Kalabakan main road that cuts across

Sapulut FR and open area along the eastern bank of Sg Sapulut. SFDSB provide appropriate

CSRs as before to keep the good relationship with the local communities and carried out

activities such as awareness education and others; conducted monitoring and enforcement;

and placement of appropriate and adequate permanent signboards on all strategic places

along the Sapulut - Kalabakan main road and Sg Sapulut.

c) Village Watershed Area - SFDSB will cooperate and assist the local communities in providing

clean gravity water supply should there be any request and depending on the availability of

funds. The watershed area will be mapped within the SFDSB master map and excluded of any

timber harvesting activities including RIL technique.

d) Organic Hill Rice Farming - Introduction of new system of organic hill rice farming, SRI system,

would provide the local communities with much fertile rice clumps and higher rice yield. SRI

system is an environmental friendly, low cost, result in higher yields and allow for permanent

cultivation on one farm area. It is hoped that it will lessen open-up new lands for shifting

cultivation and would not encroach into Sapulut FR anymore in the future.

e) Establishment of Sapulut FR Social Forestry (SF) Committee - The purpose of the

establishment is to provide a bridge communication between the SFDSB management and

the local communities where it was suggested that three groups of SF Committee to be

established namely Sg Sansiang & Sg Sansiang Cluster, Sapulut Town Cluster and Sg Sapulut

Cluster.

Chapter 3 – Review of Past Management

Land Use

The purpose of a Plantation Development Plan (PDP) is to prescribe measures to optimize

production, utilization, and regeneration of forest resources. A plan includes description of how

the listed land will be managed and treatment schedules such as timber harvesting and

reforestation.

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1st PDP was formulated to rehabilitate and establish ITP in degraded areas, protect the Licensed

Area from illegal logging, poaching, forest fires and further encroachments by the local

communities and to promote social development activities.

2nd PDP was formulated to ensure the perpetuity of the Licensed Area as forest plantation and

natural resources, introduction of BASIL (Buffer Alternate Strip Line) planting in the highly

degraded area within ITP area, restore ecological connectivity and enhance potential support

(habitat) of viable wildlife populations, biodiversity conservation and associated ecosystem

services.

Comparison of the 1st FMP and 2nd FMP

1st FMP 2nd FMP

Land Use planning 3 main land uses:

i. Conservation

ii. Production (NFM)

iii. Production (ITP)

3 main land uses:

i. Conservation

ii. Production (NFM)

a. NFM Conventional

b. NFM Mosaic planting with RIL

iii. Production (ITP)

a. ITP conventional

b. ITP with RIL

c. BASIL

Silviculture

Treatment (Climber

cutting)

Applied within NFM area only, in

the form of climber cutting, based

on the guidelines of Silvicultural

Tending procedures for Logged Over

Dipterocarps Forest by Sabah

Forestry Department.

➢ Confined in the NFM Mosaic

Planting areas.

➢ ITP with RIL and BASIL (in the

form of bamboo and climber

cutting).

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Infrastructures

Various physical infrastructures were built, maintained and repaired by SFDSB during the last 10

years including base camp, forestry complex, nursery, fire lookout tower, and road and parameter

boundary.

Forestry Complex Area

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Community Programme

SFDSB had actively engaged with the local community living adjacent to the Licensed Area by

providing direct employment and conducting various community programmes such as training,

free rubber seedlings, promoting local handicrafts, offering scholarships and conducting dialogues.

The programme have a direct impact on the economic well-being of the local communities.

Office with Conference Room Clubhouse

Albizia Cabin 1 Albizia Cabin 2

Carpenter Quarters Ranger Quarters

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Approximately, 40% of the SFDSB’s staff and workers are the villagers living at the vicinity of the

Licensed Area.

Harvesting in ITP Areas

During 3rd FMP period (2016 – 2025), SFDSB carried out harvesting in ITP area which had been

planted with Albizia, Laran, etc. in 2006-2007 (1st FMP). The purpose was to test the market price

and acceptance of plantation species. However, due to the plantation timber prices was not

attractive, especially Albizia, harvesting of planted timber was done only in one compartment

(compartment 181). Approximately 92.93 ha of the compartment was logged and yield 20,558.79

m3 volume of timber.

Planted trees harvested in ITP Compartments

Year Coupe Compartment Gross Area (ha) Volume (m3)

2016 TWU.04/06 181 (ITP) 92.93 20,558.79

Total 92.93 20,558.79

Silviculture Treatment in the ITP Area

During 2nd PDP period, silviculture treatments was also carried out in ITP’s SKT Planting

compartments and buffer stripes of BASIL compartments in the form of bamboo and climber

cutting. The total silviculturally treated area from 2014 to 2015 is shown on the following table.

Silviculture treatments in ITP area.

Year Compartment Area treated (Ha)

2016 211, 212, 213A, 213B, 213C, 214A and 214B 2,259 (ITP RIL)

2015 220A, 220B, 209A, 209B, 222A, 222B, 223A,

223B, 223C, 224A, 224B, 224C, 225A and

225B

2,624 (ITP RIL)

175, 176, 179 and 180 488 (BASIL)

Total: 5,371

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Planting Progress

Based on the 1st PDP, approximately 24,495 ha of the ITP compartments were scheduled to be

developed for forest plantation, started in year 2, from 2006 until 2013. Initially, development

of the ITP in year 2 until 2010 was based on conventional practice in which the areas were clear

felled prior to planting. However, started in 2011, there was a slight changed in the SFDSB’s

management approach in which RIL practice was introduced and implemented in ITP areas. This is

to replace a conventional practice of clear fell. Enrichment SKT planting then was implemented to

replace conventional ITP planting. In fact, during the transition period (April 2009 until August

2010), enrichment planting in the form of gap planting was implemented in the ITP areas that

harvested conventionally. The main species planted for conventional ITP planting were Acacia

mangium (Akasia), Hevea brasiliensis (Rubber), Neolamarckia cadamba (Laran), Octomeles

sumatrana (Binuang) and Paraserianthes falcataria (Batai). M e a n w h i l e , t h e e n r i c h m e n t

p l a n t i n g can be summarized as follow;-

Year Compartment

Species

Planted

Planting

Method

Net Area

Planted (ha)

2009 198, 199, 202 & 204 Batai Gap Planting 629

2010 178, 189, 199, 200, 201,

203, 204, 205, 206, 207 &

208

Indigenous species Gap Planting 2,269

2011 167, 169, 178, 207 & 208 Indigenous species Gap Planting 685

195, 196, 197 & 218 Indigenous species Line Planting 1,278

2012 195, 210, 216 & 217 Indigenous species Line Planting 993

2013 211, 212, 213, 214, 215,

216 & 219

Indigenous species Skid Trail Planting 2,076

2014 220A, 220B, 209A, 209B,

222A, 222B, 223A, 223B,

223C, 224A, 224B, 224C,

225A & 225B

Indigenous species

Skid Trail Planting

2,121

2015 226A, 226B, 228A, 228A,

246, 221A, 221B

Indigenous species Skid Trail Planting 723

174, 182, 186, 187, 189,

191 & 192

Albizia and

Kelampayan

BASIL 453

Total 11,227

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Chapter 4 - Management Prescriptions

Land Use Zone

The licensed area is managed for sustainable timber production of its renewable forest resources

while protecting environmental, economic, and social benefits of sustainable forestry. The main

management zone is divided into conservation and production zones as following;-

FOREST LAND USE Total

Compt.

Gross Area (Ha)

Conservation 7 2,091.00

Production NFM 169 52,552.00

ITP 55 21,970.00

Total 231 76,613.00

Demarcation of the natural forest in Industrial Tree Plantation (ITP) area.

Natural forest area in the plantation area such as steep slope (>25 degree), conservation area,

water catchment, Kerangas forest, salt lick, HCVF area and riparian reserve will be demarcated

and excised from developed and left intact in natural forest form, and will be managed and

monitored. Monitoring on the area will be carried out in accordance to the guideline by Sabah

Forestry Department, Sabah Wildlife Department, Sabah Environmental Protection Department

and HCVF assessment report etc. The following natural forest area which has been identified is as

following;-

Area Gross Ha

Steep Slope (>25 degree) 1,092.98

Kerengas Forest 118.14

Riparian Reserve 678.65

Labau Soil (HCV 4) 451.37

Industrial Tree Plantation (ITP) Zone

The ITP zone is confined to mainly degraded areas that fall under stratum 4 and stratum 5 while

the development of trees plantation will be limited to areas with slope gradient below 25 degrees

and subject to statutory constraints such as riparian buffers, etc.

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Over the current planning period 61 compartments planted during the previous PDP covering a

total area of 19,403 ha and an estimated planted area of 15,168 ha is expected to be harvested.

Two planting systems or designs were implemented during the past PDP, namely, conventional

line planting, BASIL planting and more recently the BASIL 100 (see the following section below).

Expected timber yield at harvesting shall be discussed according to planting system or design.

Management Objectives

The overall management objective of the ITP zone is to establish a short rotation timber

plantation as a way to generate revenue and to supply consistent, predictable and sustainable

supplies of timber to SFDSB’s Timber Complex (TC). The specific objectives of the ITP areas are:

(a) To produce a reliable and sustainable volume of plantation timber on a continuous basis

for our customers;

(b) To complement and play an integral part in maintaining the financial sustainability of

SFDSB as it allows short term plantation timber to be produced while complementing the

growing of longer term rotation of quality timber from the NFM area;

(c) To adopt BASIL 100 method as the main approach, at the same time maintaining the

environmental and biological values of the forest while satisfying the need for short term

rotation of plantation species.

(d) To manage the forest plantation areas based on a 10-year rotation cycle and expected to

produce at least 150,000 m3 yr-1 of plantation timber at a sawmill and peelable sizes, on

a consistent and sustainable basis by 2029.

ITP establishment

The development of ITP evolve as following;-

Year ITP Evolutions

Prior 2010 Conventional clear felling.

2011 - 2012 RIL in ITP adopted.

2013 - 2019 BASIL (Buffer Alternate Strip Line) planting

2020 onwards BASIL 100 (using conventional clear fell harvest with

enlarged 100 meter riparian reserves both sides)

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To make better care and enhance Sapulut’s growing stock, land preparation will be done on ITP

area and using the low impact system, more environmental friendly to avoid soil compaction.

BASIL 100 also focuses on river conservation, thus 100 meter buffer for riparian is adopted to

maintain the ecological values of the BASIL system.

With BASIL 100, SFDSB adopt the “10-8-3” approach, basing on 10-year cycle, 8 steps and 3-year

maintenance regime. SFDSB devotes a large amount of resources to post-planting management,

namely maintenance, tree protection, data collection, its syntheses, analysis and dissemination to

the entire team for them to monitor their performance and take necessary actions.

Choice of Species

The main timber species for planting and replanting programs for ITP area as shown in the

following table;-

Species Description

Paraserianthes falcataria

(Albizia)

- does not require fertile soil and can grow well on dry, damp and

even salty to acid soils with sufficient drainage.

- Albizia falcataria is a nitrogen fixing species and is commonly

planted for reforestation and afforestation in order to improve soil

fertility.

- a maximum volume MAI of 67m3/ha/year by the age of 6 years,

producing up to 403m3/ha over the entire rotation.

Neolamarckia

macrophylla (Red laran)

- more resilient to planting on dry sites compared to White laran

which is more adapted to periodic waterlogged conditions.

- planted trees of Red laran are generally ready for harvesting at

year 10 with trees attaining >50cm in diameter.

Anthocephalus cadamba

(White Laran)

- fast growing species and is suitable for replantation of forests and

ability to grow on a variety of soils, favourable silvicultural

characteristics and the absence of serious pests and diseases

- maximum volume mean annual increment (MAI) of 20 m3

/ha/year by the age of 9 years in good-quality sites, producing up

to 183 m3 /ha over the rotation.

Eucalyptus pellita - medium to large tree which is usually reaches a height 20-250

metres but can reach over 30 metres under favourable condition,

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straight bole, valuable wood properties, wide adaptability to soils

and climates, and ease of management through coppicing.

- Because of its resistance to pathogenic fungi and insect diseases,

it is preferred over Acacia mangium

New Nursery and Operations.

Nursery operations will follow the existing practiced, i.e. use of media, potting medium,

transplanting and seedlings maintenance. However, improvement will be made as along the

operations carried out. SFDSB had decided to build new nursery to upgrade their nursery facilities

to scale up planting under BASIL 100 system. To improve plant quality and nursery system, the

new nursery will be improved in many aspects such as drainage, water system, irrigation and

green house and benches. Since SFDSB, will adopt a tray system (77-cell,150cc), the benches will

be designed to suit the tray system. The new design of nursery also will be include tray return and

cleaning area. This area will be clearly demarcated from the rest of the nursery as it is poses a

potential bio-risk.

Management Approach of BASIL 100 Planting

BASIL 100 System planting will be a 10-year rotation cycle of fast growing Albizia (Paraserianthes

falcataria) and Laran species (Neolamarkia cadamba and Neolamarkia macrophylla). Since joining

BFC group, Sapulut will plant Eucalyptus pellita due to availability of good planting materials,

planting and technical support and diversification of risks.

In addition to planting, SFDSB is to also adopt the following approach to maintain the biological

values of the soil for the next cycle of harvest, so that the peel-able sized trees can be grown and

harvested:

(a) To maintain and enhance the ecological values of the soil through organic means, such as

adopting large scale composting, using humanure and biological pest controls;

(b) To explore the adoption of yarder harvesting system for the BASIL 100 planted areas in

order to lower the costs of harvesting and reduce the compaction of soil for the next cycle

of replanting;

(c) To source and evaluate better quality planting materials of Laran and Albizia species

selected for BASIL 100 planting areas;

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(d) To undertake census and PSPs after planting, and update the compartment register.

BASIL 100 System Planting Design and Concept

(a) Land preparation

To undertake BASIL 100 System, great precaution will be undertaken to minimise the compact of

the topsoil by spreading debris evenly on top of it, and by “walking the excavator on top of the

debris.

(b) Methodology

i. Compartment/plot boundary demarcation are made prior to salvage harvesting. HCVF

areas, riparian reserves, water logged areas and roads are omitted from harvesting.

ii. Each compartment will be divided into several plots of 30 – 70 ha and each plot will be

divided according to the road for easier monitoring and management;

iii. Water courses, ponds are made at each plot to ease watering during dry season or for

emergency fire fighting and for weedicide activity.

(c) Low impact land preparation approach

Land preparation which include salvage logging will be done by using low impact system such as

excavator with grappler, log fisher or yarder as the case maybe which is more nature friendly and

effective cost of harvesting. Yarder will be placed on top of the ridge or hill (preferably) to take

the advantage of the contour based harvesting system. Low impact system is nature friendly way

of harvesting because it will help to minimize soil compaction, soil erosion that may reduce future

growth of tree plantation.

Field Planting

Planting is conducted on cleared area. Based on six years of experience of BASIL, SFDSB has

decided to adopt the planting spacing 4m x 5m for Laran and 3m x 3m for Albizia in BASIL 100

planting system as SFDSB wants to increasing their stocking to avoid low stocking in future due to

high mortality and deer browsing (Albizia). So, it is more important to optimise the volume of

merchantable high quality timber per hectare. Planting area will be lining first, only then the hole

for planting will be dug. The planting hole will be 30 cm wide and 25 cm depth. Two rounds of

weedicide will be applied before planting to kill all weeds prior planting. Planting will commence

around one month after harvesting. Usage of rock phosphate fertilizer such Diammonium

Phosphate during planting will be applied to develop the root growth on the first stage of

transplanting.

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BASIL 100 Annual Planting and Estimated Yield

With 20,851 ha (gross) of ITP areas available for BASIL 100 planting system (after deduction of

1,119 ha designated for rubber) based on a 10-years rotation cycle, approximately 2,100 ha (gross)

are available for BASIL 100 planting per annum basis. The yielding about ca. 18 – 40m3 ha-1 yr -1.

Our internal requirement is 150,000 m3 p.a. Details of BASIL 100 system planting and estimated

yields is as per the below table.

Annual Planting LARAN ALBIZIA

Spacing 4 x 5 M 3 x 3 M

Planting ratio (area) 7 3

Planting Points per Ha 500 1,111

Ha for planting p.a (net) 1,018.717 436.593

Seedlings planted p.a 509,359 485,055

Survival 60% 50%

Length of rotation cycle 10 years 10 years

Average volume per tree 0.6 M3 0.6 M3

Volume on maturity p.a 285,240.76 M3 203,723.03 M3

Upkeep and Maintenance

After the planting, SFDSB will conduct a maintenance operations to upkeep the planted trees. The

summaries of the maintenance programme is shown as per below table. However, the

maintenance programme may be revised in future based on ground requirement.

Treatment Year 1 Year 2 Year 3

Circle Weeding

1st and 2nd month after planted

within a radius of 0.5 meter from

the planted seedlings. Mulching is

placed following circle weeding to

control weed growth and to

maintain soil moisture.

N/A

N/A

Blanket Slashing Month 3, 6, 9 and 12 Month 16, 20

and 24

N/A

Strip Slashing N/A N/A Month 30 and 36

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Chemical herbicides

After few years experienced with no herbicides applied at planting area, SFDSB will be introduce

herbicides as a weed control in ITP area to increase trees growth and survival rates. According to

Boden and Associates (2018), weed may reduce early growth rates to as, little as 30% of

weed-free trees and decrease survival from an expected 95% to as little as 10%. The application

of chemical herbicides is divided into 3 different sections i.e. Before Planting, Pre-Canopy Closure

and Post-Canopy Closure. Two types of spraying operations will be carried out, namely: Before

Planting Spray (BPS) and After Planting Spray (APS). BPS is conducted as a blanket spray and APS

as a spot spray. The summary of chemical herbicides application can be summarized as follow;-

SSCCEPNG

For BASIL 100 area, which previously planted with commercial trees such as Laran, Albizia, and

Binuang but the trees do not achieve size acceptable for timber sales, harvesting will not be

carried out in these compartment during the plan period. Instead, SFDSB will carry out

maintenance through “SSCCEPNG”. SSCCEPNG is an acronym for Strip Slashing, Climber Cutting

and Enrichment Planting. The importance of SSCCEPNG treatment is justified as follows:

a) Planted trees which still have growth potential, thus, due to under-sized planted timber which

has potential to increase in size, their harvesting is deferred;

b) Gaps on the ground will be supplemented with enrichment planting;

c) To regulate supply of planted timber to meet market requirements.

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Crop rotation

Crop rotation means that areas planted with laran in the first cycle will be replanted with Albizia

in the second subsequent cycle and vice versa. This is in line with Good Agricultural Practice (GOP).

The idea is to prevent the soil from depleted of particular nutrients from a single, repeated use,

and to vary the planting material to prevent pest and diseases from emerging.

Rubber Planting

SFDSB will focus on the upkeep and maintenance of the existing planted rubber trees with the

aims to maintain to the best standard. Other activities to be carried out are rubber tapping,

reviewing the management option for rubber designated area, and inter-row trail planting with

native species.

Rubber inter-planting

In 2015, 8,000 Red Laran trees were planted in sporadic gaps in the rubber area to utilize the

available area for more efficient land use. It is the policy to undertake rubber inter-planting to

make full use of available land. Payung-Payung species (Terminalia Copelandii) also will be planted

for the inter-planting.

Plantation Monitoring and Research

i. Permanent Sample Plots (PSP)

The establishment of the PSP has commenced in 2014, thus far 18 PSPs have been established in

ITP areas. The measurements are carried out at least once a year. More PSP will be established if

and when necessary according to the progress of plantation development.

ii. Research

Sapulut joined BFC in year 2019 in order to continuously improve the capabilities of our Research

and Development (RnD) department. Exchanging information with other BFC members in terms

of nursery development, silvicultural treatments, harvesting systems and pest and disease

response actions to enable Sapulut to increase its performance from the ITP areas.

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Chapter 5 - Environmental Impact Assessment and Management

Environmental Impact Assessment (EIA)

EIA is required under the Environmental Protection (Prescribed Activities) (Amendment) Order

2013 for any forest management activities, especially logging and plantation activities within an

area in excess of 500 ha.

A Special EIA was undertaken for this SFMLA FMU titled “Forest Logging and Plantation of 95,300

Hectares within Forest Management Unit (FMU 14), Sapulut, Sabah” by Sinoh Environmental Sdn

Bhd and approved by Environmental Protection Department (EPD) on 16 June 2005.

All assessment on environmental issues, the impacts and appropriate mitigation measures are

discussed in the report to minimize environmental damage.

Mitigation Measures

Key and commonly applied mitigating measures identified from the assessment are as followed:

No Main Topic Mitigation Measures

1. Soil Erosion ⚫ Protection of Steep Areas;

⚫ Reducing land area disturb;

⚫ Minimize cutting and filling in all types of road construction;

⚫ Proper bridges and culverts for stream crossing.

2. Water Quality ⚫ Preservation of Riparian Reserves;

⚫ Protection of sensitive areas e.g Watershed.

3. Flora and Fauna Ecology ⚫ Reducing damage to residual trees and other vegetation;

⚫ Protection of significant forest formation and landscape;

⚫ Wildlife management.

4. Socio Economic Consideration ⚫ Provision of employment opportunities;

⚫ Protection of water sources and supply;

⚫ Worker’s safety and health.

5. Biomass and Waste Pollution ⚫ Proper disposal of all types of waste.

6. Remedial Operation ⚫ Rehabilitation of degraded areas;

⚫ Reducing surface flow current;

⚫ Removing structures affecting streams and rivers flow.

7. Forest Fire Risk ⚫ Forest Fire Management Plan.

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Comprehensive mitigation framework to manage the impact of the forestry activities in the

Licensed Area are shown below:

Forest

Function

Activity Objective of Mitigation Mitigation of Impact

Protection Watershed

management

Reduction of accelerated

run off and

sedimentation

➢ Forest zoning by forest function.

➢ Delineation of protection

compartments according to management

restrictions.

➢ Natural forest management: no

clear felling, long harvesting cycles,

natural regenerations.

➢ RIL

➢ No ground skidding across streams.

➢ Alignment of roads away from key

habitats.

➢ Road constructions during dry

season only.

➢ Stabilization of road banks.

Wildlife

protection

Minimum disturbance of

habitats of endangered

mammals.

➢ Forest zoning.

➢ NFM

➢ Road construction and harvesting

according to standards given above.

Fire Control Reduction of fire hazard Fire management plan for the forests

based on prevention, detection and

suppression.

Pest & disease

control

Prevention of

contamination of soils

and vertebrate fauna

with pesticides.

➢ Application of bio-degradable

pesticides.

➢ Restriction of use only during

non-breeding season of insectivorous

animals.

➢ Restriction of use to production

compartments only.

➢ Safe disposal of waste.

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Timber

Production

Forest tending

(Silvicultural

operation)

Minimum disturbance of

natural succession and

bio-diversity.

➢ Elimination of immediate

competitors of commercial trees only.

➢ No eradication of weeds: only

liberation of commercial regeneration.

➢ Use of bio-degradable chemicals.

Rehabilitation

(Enrichment

planting)

Minimum disturbance of

natural succession and

bio-diversity.

➢ Removal of vegetation only along

planting lines.

➢ Planting of indigenous timbers &

high value exotics.

Conversion to

ITP

Reduction of accelerated

soil erosion and

safeguarding minimum

water quality

➢ Forest zoning according to site

suitability (slope, depth, nutrients).

➢ No blading of top soil

➢ No burning

➢ No terracing

➢ Apply slow-release fertilizer.

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Forest

Function

Activity Objective of Mitigation Mitigation of Impact

Timber

Production

Harvesting Safeguarding of future

forest stands at

compartment level

➢ Felling of trees based on silvicultural

tree marking.

➢ Directional felling

➢ Employment of low impact yarding

systems.

Road

construction

Reduction of accelerated

soil erosion

➢ Minimizing road density by

employment of LDCCS.

➢ Road gradient, width, drainage

system and stabilization of banks

according to minimum standards.

Community

Needs

Community

forestry

Prevent encroachment ➢ Awareness campaigns

➢ Provision of employment through

long-term forest operations

➢ Issuing of licenses for timber felling

and hunting according to management

plan.

Recreation /

Ecotourism

Conversion of

forest for

recreation

Minimum disturbance of

natural succession and

bio-diversity

Conserving the forest and forest

resources for recreational; purposes with

minimum disturbances to the natural

habitat.

Chapter 6 - Monitoring, Internal Auditing and Reporting

Monitoring

SFDSB monitoring will include all aspects of forest management such as boundary maintenance,

timber harvesting operations (pre and post harvest), silviculture operation, road construction,

forest security and protection, soil protection, environmental impacts, wildlife, community

forestry development and continuous forest inventory.

Regular monitoring is to ensure compliance and early recognition of problems; and to take

corrective actions immediately.

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Key Section Monitored Frequency

Boundary maintenance Annually

Compartment Planting Plan (CPP) Each CPP

Silvicultural Tending Monthly

Road Construction Monthly

Forest Security & Protection including

Wildlife

Monthly

Environmental Management Annually

CF Project Bi-annually

CFI

Resource Monitoring

Ecosystem Management (BOLEH) Strategies

The objective is to develop a conservation programme with a provision of monitoring of forest

growth and dynamics for a review 10 years after implementation. Monitoring the forest

ecosystem using the application of remote sensing and GIS as a management tool and

establishment of permanent sample plots (PSPs) and temporary sample plots (TSP).

Wildlife Monitoring

All wildlife that are found in Sapulut FR should be identified and monitored. However, time and

monetary resources are not available. In the past, the sample-based approach has been used for

conducting studies in the Sapulut FR. Wildlife monitoring system using survey technique include

transects will be implemented accordingly and for effective monitoring, staff assigned have would

have to be trained by wildlife experts.

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Internal Auditing

SFD and other third party auditors will carry out their periodic and continuous surveillance and

systematic auditing in SFDSB forest operations. SFDSB as well has established its own internal

auditing that responsible carry out regularly internal monitoring and auditing of all forestry

activities in the Licensed Area to ensure SFDSB and the contractors are in conformance with the

legal requirements.

Reporting

The reporting type and frequency are as follows:

Type Submission to Frequency

Internal Use General Manager Monthly

Quarterly

Annually

*Depends on the sensitivity of the

topic

Environmental Compliance

Report (ECR)

Environmental Protection

Department

Once in every four months

SFMLA Compliance Report Sabah Forestry

Department

Once a year

Plan Review

The 3rd PDP is subject to a review by the year 2020/21 which provides an opportunity to update

the resource situation, to refine the forest zoning scheme and management prescriptions, and to

respond to new information or changes in the SFD and/or government policies, management

approach, as well as, changes in technology and market conditions. The following aspects shall be

considered during the mid-term review;

⚫ Comparison between the targets and actual achievements of all management activities

carried out;

⚫ Assessment of the forest resources (especially yield) through the evaluation of growth data

from the CFI or BOLEH System plots;

⚫ Evaluation of the development in terms of species diversity, soil, water and wildlife

protection, and community forestry development; and

⚫ Assessment of any major changes in the environmental and socio-economic conditions and

other requirements should the Licensed Area be certified in 2015.

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Forest Management Certification

SFDSB had initiated the certification process since 2014 and it is envisaged that it will be fully

certified by 31.12.2017 by any accredited forest credible certification body such as FSC and MTCC.

Besides complying with social and environmental standards of Principle and Criteria for

certification, SFDSB will carry out its forest management in accordance with the following

guidelines:

i. To have strong forest and environmental protections standards, which require protection

of HCVFs and good forestry practices that reduce toxic chemical use;

ii. To have strong community protection standards by protecting native people rights, require

workers to be paid competitive wages and require compliance verification with social and

international policies and laws; and

iii. To be transparent in which the forest management system is governed by an equal balance

of economic, social and environmental.

iv. To ensure good governance in every aspect and to be legally verified in its timber

production.

Chapter 7 - Manpower and Budget Requirement

Manpower

Overall Manpower Summary as of December 2016:

Location Total

Kota Kinabalu Office 12

Base Camp, Sapulut 338

Tawau Office 15

Sandakan Office 2

Grand Total 367

As for some forestry related activities in the Licensed Area, a contract works will be engaged by

qualified private contractors which required to source labour from local communities living within

and adjacent the Licensed Area.

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Budget and Cost Distribution

Profits generated from logging in the ITP compartments (internal sources) and loan from Federal

Government agency will finance the forest operations / activities as prescribed in the 3rd PDP for

the next 10 years. The cost centers confined to forest restoration, silviculture, roads, general

expenses and administrative cost.

Chapter 8 - Financial Analysis

A total of RM683.3 million are estimated to be required to run the operations and activities in the

PDP over the planning period. The generated gross revenue is projected to be at RM563 million

and net profit (surplus) at RM6.8 million at current prices while the amount of royalties to be paid

to the government is estimated at RM112 million. Based on the sensitivity analysis, the projects

remains viable (positive net profit) if revenue declines by 5% and cost by 10%.

CONCLUSION

The 3rd PDP will be a framework to manage Licensed Area with clear objectives and a set of

activities that set the direction towards a responsible forestry management. The strategies and

objectives are developed to be consistent with the resources available, managements constraints

and also meeting the stakeholder’s concerns and expectations that are based on the combined

needs of the sustainable usage of forest resources and sustainable viability of the company’s

resource.