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IMPACTS OF OIL PALM PROJECT ON LIVELIHOOD OF THE BIDAYUH COMMUNITY IN KAMPUNG SENAH RAYANG DARUL

EHSAN PADAWAN, SARAWAK

Awang Dulhadi Bin Awang Mat

Master of Environmental Management (Development Planning)

2013

Pusat Khidmat Maktumat Akademik UV7VERS1T1 MALAYSIA SARAWAK

P, KHIDMAT MAKLUMAT AKADEMIK UNIMM

1111111111111111111111111 1000245991

IMPACTS OF OIL PALM PROJECT ON LIVELIHOOD OF THE BIDAYUH COMMUNITY IN KAMPUNG SENAH RAYANG DARUL EHSAN

PADAWAN, SARAWAK

AWANG DULHADI BIN AWANG MAT

A dissertation submitted in partial fulfillment of the requirements for the degree of Master of Environmental Management

(Development Planning)

Faculty of Social Sciences UNIVERSITI MALAYSIA SARAWAK

2013

ABSTRACT

(Kampung Senah Rayang Darul Ehsan is a Bidayuh village, located in Padawan District, Kuching Sarawak and comprises of 81 households. A study has been carried out to assess the impacts of oil palm establishment on the livelihood among 37 participant families in the studied area. Three specific objectives of the study are (1) To identify the types of changes in the livelihood strategies in relation to the diversification of livelihood strategies and migration, (2) To assess to what extent that the project has given the impacts on income and food security in the studied area and (3) To investigate the effectiveness of Ahli Jawatankuasa Pembangunan Peserta (AJKP) in defending the right of the participant families in the studied area. In order to collect the information for the study, several social science methods were used. These include, key informants interview, in-depth household interview and some PAR/PRA methods. The findings from the study shows that this project failed to improve the households' standards of living. Based on the result obtained, this project failed in stabilizing the households' monthly income. This subsequently, has led to 20 of 25 families understudied diversified their livelihood strategies by retaining their past livelihood as well as reconstructing the new livelihood strategies in order to sustain their living in the area rather than only depending on the benefits from the farm. This project also failed to stop 60 persons of 144 beneficiaries who form 25 participant families understudied from migrating out of Senah Rayang to engage in off-farm employment in the major towns. This because the wages paid by working in the farm and the yearly dividend received from the farm are very low and quite unsustainable. However, this project does not affect the level

of income of the participants for most of the months except for the month that they receive dividend from FELCRA which is paid yearly. The project also does not affect the food

supply as the area was converted from idle land to oil palm plantation. Apart from that, even though there is a committee that was established by FELCRA Berhad to represent the participants to claim their rights but this committee seen failed in overcoming the main issues that were faced by the participants. These issues include: (1) Unreasonable rate of yearly dividend, (2) Nepotism in the farm as well as (3) The land title issue but this committee was seen failed to play their role effectively. These findings show great contradiction with the goals of land development by the Ministry of Land Development, Sarawak that establishment of oil palm would eradicate poverty, reducing rural-urban migration and increase the standard of living in the rural area.

i

ABSTRAK

Kampung Senah Rayang adalah sebuah perkampungan Bidayuh dalam pentadbiran Daerah Padawan yang mempunyai sebanyak 81 buah isi rumah. Satu kajian telah dilakukan bagi

mengkaji kesan-kesan pembangunan kelapa sawit terhadap kehidupan 37 keluarga peserta di kawasan berkenaan. Tiga objektif khusus kajian telah ditetapkan iaitu, (1) Untuk

mengenalpasti jenis-jenis perubahan ke atas strategi kehidupan berhubungkait dengan diversifikasi strategi kehidupan komuniti Bidayuh serta migrasi di Kampung Senah Rayang Darul Ehsan (2) Untuk mengenalpasti sejauh manakah projek ini memberi kesan kepada

pendapatan dan juga jaminan bekalan makanan di kawasan tersebut dan (3) Untuk menyiasat keberkesanan Ahli-ahli Jawatankuasa Pembangunan Peserta (AJKP) di dalam

mempertahankan hak-hak peserta projek di kawasan kajian. Bagi mengumpul maklumat berkaitan kajian ini, beberapa metodologi Sains Sosial telah digunakan termasuklah temuduga dengan pemberi maklumat utama, temuduga dengan ketua isi rumah dan beberapa kaedah PAR/PRA. Dapatan kajian mendapati bahawa projek pembangunan kelapa sawit ini

telah gagal dalam memperbaiki taraf hidup isi rumah di kawasan berkenaan. Berdasarkan kepada keputusan-keputusan yang diperolehi, projek ini dilihat gagal di dalam menstabilkan pendapatan bulanan isi rumah peserta kerana 20 daripada 25 isi rumah peserta telah mempelbagaikan atau mendiversifikasikan strategi penghidupan mereka dengan

mengekalkan strategi penghidupan sedia ada dan membina strategi baru bagi tujuan untuk meneruskan kehidupan mereka di kawasan berkenaan daripada hanya bergantung kepada faedah-faedah daripada projek tersebut. Projek ini juga telah gagal dalam mengekang 60 daripada 144 orang penerima faedah yang membentuk 25 isi rumah yang dikaji daripada keluar dari Kampung Senah Rayang dan bekerja di sektor bukan pertanian disebabkan kadar

upah di ladang dan dividen tahunan yang sangat rendah dan tidak mampan. Walau bagaimanapun, projek ini didapati tidak mempengaruhi kadar pendapatan peserta untuk kebanyakan bulan dalam setahun kecuali bulan yang mana peserta menerima dividen yang hanya dibayar setahun sekali oleh FELCRA. Projek ini juga tidak mempengaruhi jaminan jaminan makanan memandangkan kawasan yang ditanam dengan kelapa sawit ini adalah tanah kosong sebelum ini. Selain daripada itu, walaupun terdapat sebuah jawatankuasa yang ditubuhkan oleh FELCRA Berhad bagi mewakili para peserta untuk menuntut hak-hak

mereka namun, jawatankuasa ini dilihat gagal dalam menangani beberapa isu-isu pokok yang dihadapi oleh para peserta. la termasuk (1) Kadar dividen tahunan yang tidak begitu

munasabah (2) Amalan nepotisme di ladang dan (3) Isu surat hak milik tanah. Penemuan kajian ini amat bertentangan dengan matlamat pembangunan tanah sepertimana yang ditetapkan oleh Kementerian Pembangunan Tanah Sarawak yang menyatakan bahawa tujuan

perladangan kelapa sawit adalah untuk mengurangkan kemiskinan dan meningkatkan taraf hidup masyarakat di kawasan Iuar bandar.

ii

ACKNOWLEDGEMENTS

First of all, I would like to express my gratitude and heartfelt appreciation for the guidance,

contribution of ideas, cooperation and support from all parties who were involved either

directly or indirectly for the success completion of this field course study to meet the

requirements for CMD 6056 in order to get Master Degree in Environmental Management

(Development Planning). My appreciation also goes specifically to Assoc. Prof. Dr. Gusni

Saat, who has helped me a lot in preparing this project paper. Besides that, I would also like

to give my appreciation to:

The Headman of Kampung Senah Rayang : Mr. Roslee Abdullah

Chairman of Mosque Committee : Mr. Amin Abdullah

And all the committee members of "Ah!! Jawatankuasa Pembangunan Peserta" (AJKP)

for the FELCRA Project, Rayang Farm.

My warmest appreciation also goes to the villagers of Senah Rayang for their corporation

throughout the research period. I am really and greatly indebted to all of you. A special

appreciation to my wife, Mdm. Noor Azidah Binti Ngatidjo for her understanding on my task

as a student of UNIMAS. Apart from that, an appreciation also goes to my parent for

providing me the opportunities to further my study until now. Finally, to my friend Mr.

Ramzi Razak, a highest appreciation and thank you to him for lending his hand in preparing

this research project. May God bless you all.

iii

Pusat Khidmat Makluinat Akademik UKIVERSITI MALAYSIA SARAWAK

TABLE OF CONTENTS

PREFACE

ABSTRACT

ACKNOWLEDGEMENT

LIST OF TABLES AND FIGURES

LIST OF ABBREVIATIONS

1.0 INTRODUCTION

1.1 Introduction

1.2 Background Of The Study

1.3 Problem Statement

1.4 Objectives Of The Study

1.4.1 General Objective

1.4.2 Specific Objectives

2.0 LITERATURE REVIEW

2.1 Introduction

2.2 Livelihoods

2.3 The Concept Of Land Tenure

2.4 Conclusion

3.0 METHODOLOGY

3.1 Introduction

3.2 Population

3.3 Sample

3.4 Key Informants Interview

Page

i

II

V

X1

xiv

I

I

8

13

13

14

14

23

24

25

25

26

27

iv

3.5 Head Of Household Interview

3.6 Focus Group Interview

3.7 Data Analysis

4.0 FINDINGS AND DISCUSSION

29

30

33

4.1 Introduction 34

4.2 Participants Family Characteristics 34

4.2.1 The Numbers Of Families Involved In FELCRA's Project, Ladang 34

Rayang

4.2.2 Numbers Of Household's Member In Every Household 36

4.2.3 Age Distribution 37

4.2.4 Gender Distribution 38

4.2.5 Level Of Education 39

4.2.6 Profession 40

4.2.7 Amount Of Time Spent In Senah Rayang 41

4.2.8 FELCRA Project Participants in Ladang Rayang 42

4.3 Type Of Main Livelihood Strategies Practiced By Participant Families

4.3.1 Main Sources of Income 43

4.3.2 Group of Crop Cultivated 44

4.3.3 Non-Farming Sources Of Income 45

4.3.4 Monthly Income For Both Activities 46

4.3.5 Land Tenure And Usages 47

4.3.6 Total Area Of Land Owned 48

4.3.7 Types Of Crops Cultivated 49

4.3.8 Year Cultivation Started 50

4.3.9 Motivation For Cultivating Each Crop 51

V

4.3.10 Average Monthly Income 52

4.3.11 Frequency On Income Obtained 53

4.3.12 Changes In Land Use Since Five Years Ago 60

4.3.13 Reason For Changes 61

4.4 The Information Of Participation In The Oil Palm Project In Senah

Rayang

4.4.1 Year Participation In The FELCRA Project 62

4.4.2 Total Area Of Land Involved In The FELCRA Project, Kampung 63

Rayang Farm

4.4.3 Total Dividend Obtained 64

4.4.4. Types Of Land Use Involved In The FELCRA Project, Kampung 66

Rayang Farm

4.4.5 Type Of Land Tenure Involved In The FELCRA's Project 67

4.4.6 Leasehold Tenure For The FELCRA Project, Kampung Rayang 68

Farm

4.4.7 Benefits Promised From The Project 68

4.4.8 Form Of Promises 69

4.4.9 Benefits Received After The Implementation Of The Project 70

4.5 The Effectiveness Of Participant's Development Committee (AJKP)

4.5.1 The Establishment Of The Participant's Development Committee 72

(AJKP)

4.5.2 Knowledge About The Existence Of AJKP 74

4.5.3. Membership in AJKP 74

4.5.4. Frequency Meeting with AJKP 75

4.5.5 Perception on Effectiveness of AJKP 76

vi

4.6 Impacts Of The Project On Livelihood Strategies And Security In Senah

Rayang

4.6.1 Worrying In Losing Land Right

4.6.2 Impact Of Land Use

4.6.3. Reason for Land Use Changes

4.6.4. Impacts on Rice Production

4.6.5. Impacts on Cash Crop

4.6.6. Impacts on Monthly Income

4.6.7. Reason for Diversification

4.6.8. Perception on Migration

4.6.9. Relationship between Migration and the Project

4.6.10. Satisfaction with the Project

4.6.1 I. Reason for Satisfaction/ Unsatisfy

4.6.12. Project Continuation

4.6.13. Reason for Continuation

4.7 Discussion

77

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90

92

92

93

94

4.7.1 The Type Of Changes In Livelihood Strategies In Relation Of The 95

Diversification And Migration In The Area

4.7.2 The Impacts Of Oil Palm Establishment Project On Income And 99

Food Security Of The Bidayuh Community In The Area

4.7.3 The Effectiveness Of Development Participant's Committee Or 101

AJKP In Delivering Their Responsibilities In Defending The Right

Of Participant's Families In The Studied Area

4.0 CONCLUSION

4.1 Introduction 103

vii

4.2 Conclusion

4.3 Research Implication

5.0 REFERENCES

6.0 APPENDICES

APPENDIX A: Questionaires

APPENDIX B: Letter to the Headman

103

105

106

VIII

LIST OF TABLES

Table 4.1 Total of Household Member in every Household

Table 4.2 Age Distribution

Table 4.3 Gender Distribution

Table 4.4 Education Level

Table 4.5 Types of Profession

Table 4.6 Amount of Time Spent in Senah Rayang

Table 4.7 FELCRA's Participants

Table 4.8 Main Sources of Income

Table 4.9 Group of Crop Cultivated

Table 4.10 Non- Farming Sources Of Income Groups

Table 4.11 Monthly Income

Table 4.12 Access on Land

Table 4.13 Types Of Access

Table 4.14 Total Area Of Land Owned By Every Participant's Families

Table 4.15 Land Tenure

Table 4.16 Types Of Land Use

Table 4.17 Year Cultivated

Table 4.18 Motivation For Cultivating Each Crop

Table 4.19 Average Of Income Obtained

Table 4.20 Frequency Of Income Obtained

Table 4.21 Changes In land Use Since Five Year Ago

Table 4.22 Reason For Changes In Land Use

Page

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ix

Table 4.23 Year Participation Started 62

Table 4.24 Total Area Of Participant's Land Involved In The Project 63

Table 4.25 Total Dividend Obtained 64

Table 4.26 Correlation between the Number of acres and Total Dividend Obtained 65

Table 4.27 Type Of Land Use Before Converted To Oil Palm Project 66

Table 4.28 Ownership Of Land 67

Table 4.29 Leasehold Tenure For The Project 68

Table 4.30 Benefits Promised 68

Table 4.31 Form Of Promises 69

Table 4.32 Benefits Received From The Project 70

Table 4.33 List Of AJKP Members 73

Table 4.34 Knowledge About The Existence Of AJKP 74

Table 4.35 Membership In AJKP 74

Table 4.36 Frequency In Meeting With AJKP 75

Table 4.37 Perception On Effectiveness In Delivering Roles 76

Table 4.38 Worrying Of Losing Land 77

Table 4.39 Influence On Land Use 78

Table 4.40 Reason Of Land Use Changes 78

Table 4.41 Impacts On The Rice Production 79

Table 4.42 Impact On Cash Crop Production 80

Table 4.43 Impact On Monthly Income 82

Table 4.44 Reason in Diversifying Livelihood Strategies 83

Table 4.45 Perception On Migration Out Of Senah Rayang 87

Table 4.46 Relationship The Phenomena Of Migration With The Project 90

Table 4.47 Correlation between Age Distribution and Amount of Time Spent in SR 91

x

Table 4.48 Satisfaction On The Project

Table 4.49 Reason Of Satisfaction/ Unsatisfied

Table 4.50 Continuation Of The Project For Second Cycle

Table 4.51 Reason For Continuation Of The Project

LIST OF FIGURES

92

92

93

94

Page

Figure 3.1 The Livelihood Framework 14

Figure 3.1 Village Mapping Process 27

Figure 3.2 Key Informants Interview 28

Figure 3.3 Indepth-Interview with the Head of Household 30

Figure 3.4 Focus Group with AJKP 31

Figure 3.5 Focus Group with Youngsters 31

Figure 3.6 Focus Group with Woman 32

Figure 4.1 Village Map for Kampung Senah Rayang 35

Figure 4.2 Seasonal Calendar 54

Figure 4.3 Chamber for storing Paddy after cleaning process 55

Figure 4.4 Scatter Plot for Correlation between the Number acres of Land and the 66

Total Dividend Obtained

Figure 4.5 Market Price for Black Pepper (1995 - 2011) 81

Figure 4.6 Market Price for Crude Palm Oil (1997 - 2012) 85

Figure 4.7 Scatter Plot for Correlation between Age Distribution and Amount of 91

Time Spent in SR

XI

LIST OF ABBREVIATIONS

AJKP

DOA

FELCRA

Ahli Jawatankuasa Pembangunan Peserta

Department of Agriculture

Federal Land Consolidation and

Rehabilitation Authority

FELDA Federal Land Development Authority

JVC Joint Venture Company

LCDA Land Custody and Development Authority

SALCRA Sarawak Land Consolidation and

SFDC

SLDB

Rehabilitation Authority

Sarawak Development Finance Corporation

Sarawak Land Development Board

X11

CHAPTER 1

INTRODUCTION

1.1. INTRODUCTION

This chapter will be discussing the history of the land development program in Malaysia in

general and in Sarawak in particular. It also includes discussion on initial initiative brought by

the federal government in combating poverty and landlessness among community in Malaysia by

establishing the Federal Land Development Authority (FELDA) and how this program was

replicated by the state government for the same purpose. Other than that, the main aspect of the

research including the research question and objectives of the study are also included in this

chapter.

1.2. BACKGROUND OF THE STUDY

According to Colchester et al. (2007), the Ministry of Land Development Sarawak has set a goal

for land development in Sarawak which is to:

".. Develop the idle and unemployed land to be commercialized as oil palm plantation in order

to provide job opportunities and to ensure the communities in the rural area to have a stable

income. Thereby, the development of native customary land should be increasing the living

standard of the rural community and also eradicate poverty, reducing rural-urban migration as

well as to contribute a balanced development between rural area and urban area. "

I

The history of oil palm expansion in Malaysia started in 1956 after the establishment of Federal

Land Development Authority (FELDA). It was considered as the most effective strategy at that

time in combating poverty and landlessness among Malaysian community especially, Malay

after British colonialization. This was done by resettling the respective community from their

places of origin to a new area which was allocated for plantation agriculture. The land involved

in this scheme at that time was an idle and empty land area which was owned by the state. In

illustrating the program, the federal government has provided about 800,000 hectares of lands in

1956 to be planted with oil palm for 112,000 families or households all over Peninsular Malaysia

while, FELDA was given the responsibility in managing the marketing, construction and

transportation during the implementation of the program. Apart from that, FELDA was also

playing the role in establishing cooperation with 13 companies and eight joint ventures with the

external investors. Besides that, to ensure the project was successful and benefiting the

participants, FELDA also provided credit facilities, stores, school and health clinics in the

resettlement area. The selection of eligible participants has been done through a point system

which depended on the needs and suitability of each participant or family. These include criteria

such as age, skills, educational background and health condition of the applicant. However, this

system excluded those households who owned land area that was more than one hectare. The

responsibility in screening the applications was done by the state and federal agencies and

FELDA itself. In this scheme, every household was provided with a plot of 4 to 6 ha and a small

barrack style house. Each plot was planted with oil palm at the lowest cost, and every participant

was provided with agricultural equipment and inputs at a subsidized rate. For those who wanted

to buy the lands, the FELDA has provided a long term credit facility for them.

2

Besides providing economic activities, FELDA was also provisioning social development for the

settlers which was needed in order to mold them into a community as soon as possible as this

group of people did not know each other. This has been done through several community

development programs including economic advisory services, maternal and pediatric health

services, family planning services, religious services, kindergarten classes, further education

classes, youth club and coorporative scheme. These activities were managed by FELDA itself

except for health-related activities, which has been carried out by nurses appointed by the

Ministry of Health in the clinics provided by FELDA. This program was successful as discussed

by Orin (1985) who simplified that this land development program model was highly effective to

eradicate poverty and landlessness among community especially, Malay community. In his

study, from 26 of 308 FELDA schemes all over Malaysia in 1985, he argued that over 55.2

percent of the eligible women found to be practicing family planning while over 78.9 percent of

the eligible women utilized postnatal health care services. Other than that, one in three of the

eligible children in the schemes attended the kindergarten classes while over 46.9 percent of the

households have involved in some forms of extramural income-generating activities.

In the context of Sarawak, there are several state government departments and agencies that

involved indirectly in expanding the oil palm plantation in the rural area. Started by Department

of Agriculture, Sarawak in 1964, the state government tried to adopt the FELDA's model, which

was aimed to develop poor community in the rural area. However, in 1968, this effort was then

taken over by Sarawak Development Finance Corporation (SFDC). However, in 1972 the state

government appointed Sarawak Land Development Board (SLDB)' to proceed with the program

1 SLDB is a state statutory body of the state government before it was privatized in 2000, to be renamed as Sarawak Plantation Sdn. Bhd.

3

until 1976. Then, it has been continued by Sarawak Land Consolidation and Rehabilitation

Authority (SALCRA). Finally, Land Consolidation and Development Authority (LCDA) has

been appointed by the state to carry out this program by involving the private investor.

Bulan (2007) in her study regarding the land development in Sarawak told that the first land

development program was been implemented in 1964 - 1968. The implementation of the

program was through opening new lands and resettling the respective community from the other

area to a new allocated resettlement scheme. This was an area that was allocated for plantation

agriculture which exactly replicated FELDA's Land Development model. Every migrant was

given a plot of land each and asked to develop the land on their own finances. In describing

further about this program, Fox (2009) told that it was an involuntary land resettlement scheme

by the government. This main purpose of this land development program was to improve the

security besides protecting the longhouse communities, which were constantly harassed by

insurgents due to Malaysia - Indonesia confrontation (1963 - 1966) and communist threat which

caused the whole country to be declared in emergency (1966 - 1973). However, this program has

failed as the allocated area for the scheme was an area which was owned by other communities

who lived around the area and in the status of Native Customary Right (NCR), not the idle or

empty land. Other than that, as the participants were asked to finance all costs in developing the

land by themselves, it had resulted them burdened with debts. Their condition became worsen

when the price of the commodity in the market was unstable. This indirectly had affected their

income and led them being not affordable to payback the debts (Bulan, 2009).

4

Pusat Khidmat Makluwat Akademik UNIVERSiTi MALAYSIA SARAWAK

The failure of the first program has given lesson to the state government to be more careful in

implementing the land development program as the issue involves land tenure. However, in

dealing with this issue, the state government has come up with a new concept of land

development which provided the collaboration between government, and the target community

in developing their land. However, the land title was still held by the landlords. In 1976, a new

statutory body called Sarawak Land Consolidation and Rehabilitation Authority (SALCRA) was

established to work with this concept. This concept involved the consolidation and development

of NCR land in a targeted area through a bulk system and, the landowners will automatically

become project participants. The landowners or participants have been trained in the agricultural

and farm management for a certain period. Then, when the participants are ready to manage the

farm, the farm would be returned back and redistributed among landowners.

However, this new concept again failed as there were conflicts among the landowners regarding

the distribution of the lands. This was because the NCR land does not have any clear boundaries

among the respective landowners. The only person who actually has the knowledge about this

matter is the headman of the village. Besides that, the failure of this program also was

contributed by dependence factor. The program participants' attitudes that were too dependent

on government financed assistance and SALCRA management in managing their farms rather

than working by their own. This was also identified as one of key factors why this model has

failed to sustain (Colchester, 2009).

The efforts by the state government to develop NCR land as a strategy in combating poverty did

not get stuck there. New initiative in developing NCR land without any government intervention

5

was introduced in 1981 which emphasized on the involvement of private sector and collaborated

with the landowners. The aims of this new concept of land development are (1) To encourage the

private companies to be involved in the plantation agriculture concept without interference and

involvement of the government costs; and (2) To create a new procedure in seizing NCR land

around 5000 hectares and above to be commercialized and to attract private entities to invest

their money.

In 1981, a new statutory body called Land Consolidation and Development Authority (LCDA)

was established to work on this new concept. This concept outlines that the NCR lands must be

surrendered and leased to the Joint Venture Company (JVC) to be developed as Oil Palm

Plantation farm for 60 years. During this period, the landowners and the government were not

allowed to interfere in any aspects of the farm management. The landowners have promised with

a certain amount of dividend every month for every hectare that has been surrendered for oil

palm establishment. However, they were not compensated for any damages of their crops planted

on the land such as rice, fruits and land maintenance. In the aspect of profits sharing, the private

companies will be holding 60 percent of equity while the landowners and the government will be

holding 30 percent and 10 percent of equity respectively. The equity for both government and

landowners would be held by LCDA as trustee.

According to Colchester et al. (2007), this concept was successfully attracting private investment

in the oil palm plantation in Sarawak. It can be proven in 1991, where almost all of the oil palm

plantations were owned by the government but, in 2002 only 17 percent of oil palm plantation

farms were owned by the government while the rest was managed by private investors. Until

6

2005, from the Ministry of Land Development sources told that about 31 projects were

successfully implemented on the Native Customary Land under this new concept which covered

248,337 hectares. According to the Department of Agriculture Sarawak (DOA) statistic2, from

2007 until 2011, the total area of oil palm cultivation in Sarawak was estimated at about

1,021,586.78 hectares.

In this study, the researcher is going to identify what are the impacts of oil palm expansion on

the livelihood of community in Kampung Senah Rayang, an area of Bidayuh ethnic in Padawan,

Serian.

2 Sarawak Agriculture Statistic 2011. No date.

7

1.3. PROBLEM STATEMENT

Kampung Senah Rayang Darul Ehsan Padawan (NI 7.596 El 10 21.77) is located near Tebedu

which is at Malaysia and Kalimantan border. From Kuching, it takes 86 kilometers by using 10

miles through Borneo Height road. Other than that, it can also be reached through Kuching -

Serian road and heading to Borneo Highland and it will takes about 45 minutes to one hour or

114 kilometers. This village was established in 1892 and it is a mixture of Muslim and Christian

village but Muslim is more compared to Christian's community. There are 363 of Muslims while

56 people are Christians.

According to the Headman of Kampung Senah Rayang, the community that live in this area is

from Biatah group, one of groups that forms Bidayuh ethnic. Other than Biatah, there are several

other groups which include Bukar-Sadong (Serian District), Bau Jagoi (Bau District) and

Selakau Lalla (Lundu District). Even though they are grouped in the same ethnic which is

Bidayuh, these groups are differentiated by their daily languages. These groups prefer to use

national language (Bahasa Malaysia) when communicating among themselves (Chee-Beng,

1997). The location of Kampung Senah Rayang Darul Ehsan can be shown in Figure 1.1 and

Figure 1.2 respectively on page 11 and 12.

The establishment of oil palm estate in Kampung Senah Rayang was brought by Federal Land

Consolidation and Rehabilitation Authority (FELCRA). It is a federal government link company

(GLC) that was established in 1966 and being cooperated in 1997. Until 2013, FELCRA has

developed and managed about 98 estates which covered about 9,154.41 hectares area of land in

Sarawak through joint venture with the state owned companies.

8

This project was called "Projek FELCRA Ladang Rayang", established in 1996 and covered

about 445.13 hectares of land. There are 157 participants involved in this project which are from

four major villages namely, Kampung Senah Rayang, Kampung Rudan, Kampung Bisira and

Kampung Stubot. According to the Headman of Kampung Senah Rayang Darul Ehsan, Mr.

Roslee Abdullah, the people from those three villages excluding Senah Rayang are originated

from Kampung Senah Rayang. However, due to the conflict different of faiths between

Christians and Pagan community, some of the villagers decided to move out of Senah Rayang

and established their own villages which are not very far from the area (taking about 2-3

kilometres each from Senah Rayang).

The establishment of the project is on Native Customary (NCR) land, a former swidden area for

hills paddy cultivation. It was left idle as the area is quite far from the resettlement area, taking

about 1-2 hours' walk. In establishing this estate, the FELCRA's representatives came to the

longhouse and organized a meeting with those households who have agreed for the establishment

of the project on their land. According to the Headman of Senah Rayang Darul Ehsan, every

household was asked to surrender at least two acres of their land to the FELCRA in order to

establish the oil palm farm. As a return, they were promised with several benefits such as: (1) A

Reasonable yearly dividend which will be paid before Hari Raya Aidilfitri celebration every

year, (2) Every family member including participants themselves and their children are given the

priority to work in the farm and finally, which is the most important is that every family that

participates in this project will get the land title or grant after five years of the project

establishment. In dealing with the participants, a "Ahli Jawatankuasa Pembangunan Peserta"

(AJKP) or Participants Committee was established in 1997 by FELCRA. This committee was

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considered as representative of the participants to discuss any matters arising regarding the

project.

Nevertheless, after 17 years of project establishment, this project was claimed to fail in order to

upgrade the standard of living among participants' families in the studied area. The yearly

dividend that every participant's family received once a year does not contribute much to their

household income while the wages paid for working in the farm is quite low as compared to

other types of contract works inside and outside of Senah Rayang. These circumstances had led

to some participant's family members including their heads of household migrated out of Senah

Rayang and engaged in off-farm works and some others are still retaining their traditional

livelihoods by growing paddy and smallholder crop. Apart from that, the failure of FELCRA in

keeping their promise to work on the land title after five year of project establishment has caused

the villagers getting very unhappy on the project management. The committee or AJKP that was

established to represent them in claiming their right was considered useless as this committee

had failed to deliver their responsibilities effectively. The question here is that what are the

impacts of oil palm establishment on the livelihood of Bidayuh community in Kampung Senah

Rayang in relation to diversion and diversification of livelihood strategies and food and income

security in the area?

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