RM5.3 billion from Sustainable Forest Management License Agreement royalty: Chief Minister

Daily Express

11-05-2025

Published on: Sunday, May 11, 2025
Published on: Sun, May 11, 2025 Text Size: Safar (fourth left) presenting the Compliance Certificate to a representative of Jawala Plantations Industries. Kota Kinabalu: Sabah collected RM5.3 billion in timber royalties under the Sustainable Forest Management License Agreement (SFMLA) between 1999 and 2023. Chief Minister Datuk Seri Hajiji Noor said the figure represented an average annual revenue of RM213 million and the SFMLA initiative has created about 40,000 jobs for Sabahans. 'It cannot be denied that some are still sceptical or hold negative views about SFMLA activities in Sabah. However, let us not be influenced by unconstructive opinions or instigations that do not contribute to the progress of Sabah,' he said at the Forestry Appreciation event at Sabah International Convention Centre (SICC) on Friday night. His speech was read by State Secretary Datuk Seri Sr Safar Untong. According to Hajiji, Sabah has been a pioneer in sustainable forest management (SFM) through a smart partnership with the private sector following the introduction of the long-term SFMLA in 1997. 'The sustainable forest management concept has greatly assisted the State Government in managing Sabah's vast forest reserves. It not only contributed to the State's economy through the logging sector and timber industry, but also plays a vital role in improving the living standards of local communities residing near licensed areas. 'To date, approximately 1.4 million hectares of Class II Forest Reserves in Sabah have been licensed to 43 SFMLA concessionaires,' he said. Hajiji said the State Government, through the Forestry Department, conducts an annual progress review of each SFMLA concessionaire. Since its inception, nine licenses have been revoked for failure to comply with the agreement conditions. 'This reflects the seriousness of the State Government in implementing the SFMLA concept. However, a majority of the SFMLA concessionaires have demonstrated their commitment to managing the forest sustainably under their concessions. 'The proof is tonight when 32 SFMLA concessionaires receive the Compliance Certificate for their achievement in the 2024 Annual Work Plan,' he said. The Chief Minister called upon all the SFMLA concessionaires involved in the forest plantation management to intensify their efforts to achieve the planting target in their respective areas. 'This is to ensure our goal under the Forest Plantation Development Action Plan 2022-2036, that is about 18,000 hectares of forest plantation per year could be achieved successfully,' he said. According to him, Sabah received an Appreciation Certificate last March from the Natural Resources and Environmental Sustainability Ministry as the third highest State with newly-gazetted protected areas in Malaysia after Johor and Sarawak from 2021 to 2023. In this respect, Sabah had received RM26.45 million under Phase One of the Ecological Fiscal Transfer (EFT) Fund from the Federal Government. 'The fund would add value to Sabah's effort to increase its Totally Protected Area (TPA) to 30 per cent. Sabah has already gazetted 2.012 million hectares of TPA, which is 27.15 per cent of the State's total area. In line with the 2018 Sabah Forest Policy and Hala Tuju Sabah Maju Jaya Development Plan, he said Sabah now needs about 211,000 hectares to achieve this year's 30 per cent TPA goal. Hence, he was glad to announce that the Forestry Department was preparing a proposal paper to gazette a few more critical protected areas under Section 5A of the 1968 Forest Enactment to ensure the TPA target could be met this year. 'I fully support this effort and hope it can be realised in the near future,' he said. Hajiji also said the amendment to the 1968 Forest Enactment passed in the State Assembly in April this year was apt since it gave the State Government the absolute authority to regulate forest-based carbon credit trading activities. He said with the amendment, forest carbon activity would be regulated according to the terms and conditions that safeguard the State's interest, and any monies or revenue derived from the forest carbon credit activity will go directly to the State. The amendment also gave the Chief Conservator of Forests power to close some of the sensitive forest reserves; to issue permits and impose fees for certain activities in a forest reserve; and to amend penalties for forest offences. 'This amendment, which is in line with the provision under the National Forest Act (Amendment) 2022, would further strengthen forest enforcement in combating illegal extraction of forest resources and enhance forest conservation efforts. Since 2010, 34 arrests for forest reserves encroachment could not be prosecuted in the court because the forest reserve was not closed for public access,' he said. * Follow us on Instagram and join our Telegram and/or WhatsApp channel(s) for the latest news you don't want to miss. * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
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