PUBLIC SUMMARY OF PLANTATION DEVELOPMENT PLAN (PDP) · 2020. 1. 24. · SAPULUT FOREST DEVELOPMENT...
Transcript of PUBLIC SUMMARY OF PLANTATION DEVELOPMENT PLAN (PDP) · 2020. 1. 24. · SAPULUT FOREST DEVELOPMENT...
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 : [email protected]
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
46
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.