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The Sabah Forestry Department (SFD) has adopted a mission for the sustainable management of the State’s

forests, that is, “To effectively and effi ciently manage the State’s forest resources in accordance with the principles of sustainable forest management.” In other words, sustainable forest management (SFM) respects society’s increasing demands for forest products and benefi ts, as well as, the need to preserve forest health and diversity. It has been a decade since the birth of SFM in Sabah in 1997. Since then, major progress has been made toward SFM. Developments have stimulated changes in Sabah’s forest policy, legislation and management practices that will continue to evolve in response to challenges and changing values and/or public needs. In response to these, the SFD, on behalf of the State Government, have set rules and regulations on the latest knowledge in SFM on nearly all of its Forest Reserves, and are monitoring progress toward achieving SFM.

SFM is public-driven Since the late 1990s’, the SFD has increasingly consulted the stakeholders and other interested parties (especially during the planning process) to identify appropriate strategies and management plans. This has enlivened the debate within the stakeholders about sustainability and thus, has increased their participation in planning and decision making – decisions that result in healthy forests and sustainable forest resources. Approaches to integrated landscape management that incorporates a broader array of values, such as ecosystem management and high conservation value forests are now accepted and implemented.

Where is it happening?Integrated landscape management (ILM) has taken root in Deramakot Forest Reserve (DFR) since the latter was awarded an FSC Certifi cate in 1987 as the fi rst well managed tropical rainforest in the world. Although ILM is still evolving, the approach has been further implemented with success in Ulu Segama – Malua Forest Reserves (USM). Collaboration is the key ingredient of ILM. The process brings together many

voices, where planning and managing USM allows people with diverse interests to develop a shared vision - a vision that includes environmental, economic, social, cultural, wildlife, aesthetic and recreational objectives. The planning process for USM throughout the year enabled the stakeholders to take into account the potential activities of others and incorporated these aspects in the fi rst USM Forest Management Plan (FMP) draft, which was completed in December 2007.

Measuring SFMAn on-going challenge for the SFD and the Sustainable Forest Management License Agreement (SFMLA) holders and the Long-Term License (LTL) holders (who are our SFM partners) has been how to translate the concept of sustainable forestry into real and measurable goals. We may know what SFM is, but how do we evaluate our progress toward it? Grappling with this question, we used a combination of internal and third-party audits, based on close monitoring, auditing and reporting.

Are we progressing towards SFM?This is the question where there is no defi nitive answer yet. An attempt to quantify progress towards SFM in Sabah especially that covers the following key aspects of SFM was being aggressively pursued in 2007:• Extent of forest resources; • Biological diversity; • Forest health and vitality; • Productive functions of forest resources; • Protective functions of forest resources; and • Socio-economic functions.

It is an on-going process. Besides that, the road to SFM is continually changing, as we grapple with shifting values, demands on the environment that infl uence the forest landscape. Forest management itself will need to change, and strategies to help forests and society to adapt to a changing environment are needed. Nevertheless, throughout 2007, there were many good signs and positive trends towards SFM in Sabah and these constitute the base of this year’s report.

What had been accomplished in 2007?In 2007, there has been an appreciable degree of progress towards SFM but the full implementation still remains far from satisfactory. While some of our partners showed a good level of understanding and acceptance in SFM implementation and showed a consistent performance level, there were others who did not meet their Annual Work Plan (AWP) targets due to internal and external reasons. On the other hand, there had been a signifi cant improvement on SFM planning with good participation and coordination from all relevant stakeholders for the purpose of achieving SFM. This was shown especially during the preparation of the Ulu Segama – Malua Forest Management Plan and its implementation, which involved various stakeholders such as, Yayasan Sabah as the Licensee, WWF - Malaysia and HUTAN (a French NGO).

An example of HCVF in Tawai

SUSTAINABLE FOREST MANAGEMENT 20

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144

Like in 2006, timber production from the NFM area largely came from Yayasan Sabah (2,647,740 m3), Benta Wawasan (653,755 m3), Timberwell Berhad (16,533 m3) and Sabah Forest Industries Sdn. Bhd. (SFI) – 11,411 m3. Yayasan Sabah also has the highest production from the ITP area (1,056,615 m3), followed by SFI (705,929 m3, i.e. 458,461 m3 from natural forest conversion and 247,468 m3 from planted area), Benta Wawasan (515,729 m3), TSH Resources Sdn. Bhd. (116,768 m3) and Sapulut Forest Development Sdn. Bhd. (107,340 m3). The lowest production (13,097 m3) was from Lebih Hasil Sdn. Bhd. Meanwhile, Deramakot Forest Reserve, which is an FSC certified forest and managed by the SFD, produced 13,662 m3 of certified timber from 661.16 ha in 2007, from NFM harvesting. Approximately 80% (196,871 m3) of the log production from SFI ITP area was Acacia mangium, while 20% (50,597 m3) was from Eucalyptus grandis.

Timber ProductionThe year 2007 saw seven (7) of our SFMLA and three (3) LTL partners involved in timber harvesting (within natural forest management, industrial tree plantation areas/compartments and planted areas). The total area logged from the NFM area in 2007 was 90,839 ha - an increase of 30,686 ha as compared to 2006. An increase in area harvested was from the Yayasan Sabah SFMLA area, mainly in Malua Forest Reserve. The total volume of timber harvested from the NFM area was, therefore, increased from 1,008,688 m3 in 2006 to 3,343,101 m3 in 2007 (see Chart 20.1 and Chart 20.2). On the other hand, the total area harvested from industrial tree plantation compartments (i.e., natural forests to be converted to ITP) in 2007 was 54,371 ha, that is, 52,562 ha came from natural forests and 1,809 ha from planted forest (mainly from SFI’s ITP area). The total production was 2,678,975 m3, that is, 2,431,507 m3 from natural forests and 247,468 m3 from SFI’s planted areas.

Chart 20.1 : Area harvested (NFM and ITP) by SFMLA/LTL holders in 2007

Chart 20.2 : Log production (NFM and ITP areas) from SFMLA/LTL areas in 2007

145

Silviculture Treatments and Forest Rehabilitation/RestorationThe main objective of silviculture is to enhance the survival, growth and quality of potential crop trees. The systematic application of an appropriate silvicultural system is a basic principle in SFM. The silvicultural treatment practiced in Sabah is in the form of selective liberation of potential crop trees (PCT) thus, avoiding the blanket elimination of secondary species and non-commercial trees. Treatments involve the selective liberation of selected PCTs mainly by the removal of overhead shade and the cutting of vines and climbing bamboos. This practice has been aggressively pursued in 2007 where forests silviculturally treated was approximately 22,757 ha, which is about 11,068 ha more compared to the previous year (Chart 20.3). Amongst the SFMLA/LTL holders, TSH Resources Sdn. Bhd. had the most area silviculturally treated with a total area of 2,793 ha and closely followed by Timberwell Sdn. Bhd. (2,720 ha), Bornion Timber Sdn. Bhd. (1,784 ha), Eco-Plantations Sdn. Bhd. (1,256 ha) and KTS Plantation (811 ha). Yayasan Sabah in collaboration with the SFD had silviculturally treated 3,9780 ha in USM FRs, while the SFD had silviculturally treated 1,000 ha in Deramakot Forest Reserve and 5,295 ha in Tangkulap/Pinangah Forest Reserves (FMU 17A) during the year.

Timber harvesting using RIL Method. Inset: Logyard in Sapapayau and in USM.

Chart 20.3: Total area silviculturally treated by SFMLA/LTL/SFD in 2007

Silviculture treatment in Ulu Segama-Malua Forest Development Project, Lahad Datu.

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146

Enrichment planting carried out in TSH, SFI, Idris Hydraulic and Ulu-Segama Malua Sustainable Forest Management Project

The cumulated total area silviculturally treated as of 31st December 2007 is approximaltely 74,990.44 ha (see Table 20.1). Meanwhile, forest rehabilitation or restoration, which is the principle management strategy for degraded forests and aims to enhance and accelerate natural processes in order to increase the timber volume and economic value of the degraded forests, was also carried out in 2007. The total area enriched/restored in 2007 was approximately 4,808 ha. Sapulut Forest Development Sdn. Bhd. has the most area rehabilitated or restored (2,298 ha) followed by YS (821 ha), Idris Hydraulic Sdn Bhd (630 ha), USM (396 ha), KTS Plantation (388 ha), Idris Hydraulic Sdn. Bhd. (200 ha) and the SFD (Tangkulap/Pinangah – 41 ha and DFR – 35 ha) – see Chart 20. 4. The cumulated total area rehabilitated/restored as of 31st December 2007 is approximately 94,431.15 ha respectively (see Table 20.1).

Chart 20.4: Area enriched and restored in 2007

147

No. Organization / Company

Forest Plantation (Ha)Forest Rehabilitation &

Silviculture Treatment (Ha)

Fast Growing Spp.

High Value Timber

Spp.Rattan

Total Area Planted

Enrichment Planting

Silviculture Treatment

A. Sabah Forestry Department:

1.2.3.4.5.

(a) District Forestry Offices(b) Forest Research Centre (c) Tangkulap Pinangah FR (FMU17) (Tamoi)(d) Sapulut FR (FMU 25)(e) Deramakot FR (FMU 19) (Balat)

106.69118.11

0.000.000.00

391.6872.61

0.00363.62

0.00

0.005.430.000.000.00

498.37196.15

0.00363.62

0.00

0.000.00

53.00364.00

1,182.41

0.000.00

11349.00603.00

11,023.17

Sub-total 224.80 827.91 5.43 1,058.14 1,599.41 22,975.17

B. Yayasan Sabah / Rakyat Berjaya:

1.2.3.4.5.6.

(a) ICSB Luasong(b) PISP(c) Forest Regeneration & Research Unit (Danum)(d) Danum (Infapro Project)(e) Inikea Project (Kalabakan)(F) USM Project

0.0028.06

6.300.000.000.00

860.8327.20

131.200.000.000.00

0.00200.00

0.000.000.000.00

860.83255.26137.50

0.000.000.00

0.000.000.00

5,937.507621.80

418.00

0.000.00

100.005,439.50

489.403,978.00

Sub-total 34.36 1,019.23 200.00 1,253.59 13,977.30 10,006.90

C. SFMLA Holders:

1.

2.3.4.5.6.7.8.9.

10.11.12.13.

Sabah Forest Industries Sdn Bhd (SFI):(a) SFI (FMU No. 7)(b) SFI SchemeKTS Plantation S/B (FMU No. 19B)Total Degree S/B (FMU No.18B)Tabung Haji (Bonggaya) Sdn Bhd (FMU No. 18A)TSH Resources Sdn Bhd (FMU No. 4)KM Hybrid (FMU No. 11)Bornion Timber S/B (FMU No. 11)Timberwell Berhad (FMU No. 3)Sapulut Forest Development S/B (FMU No. 14)Anika DesiranLebihasil Sdn Bhd (Part of FMU 17)Benta Wawasan S/BEco-Plantations Sdn Bhd

42,201.46500.00116.00

0.000.00

4,339.00725.70669.31

1,164.882,815.89

0.00221.93

11,000.000.00

0.000.00

2,163.002,369.872,339.20

670.0014.10

2,194.74374.48709.77

0.0026.14

0.000.00

0.000.000.000.000.000.000.000.000.000.000.000.000.000.00

42,201.46500.00

2,279.002,369.872,339.205,009.00

739.802,864.051,539.363,525.66

0.00248.70

11,000.000.00

1,127.000.00

2,660.000.000.00

54.000.00

24.000.000.000.000.000.000.00

45.830.00

9,323.580.000.00

10,190.000.00

6,446.2210,122.00

3,344.741,280.00

0.000.00

1,256.00

Sub-total 63,754.17 10,861.30 0.00 74,616.10 3,865.00 42,008.37

D. Agencies / Companies:

1. 2.3.4.5.

6.7.8.9.

SAFODA:(a) SAFODA Project(b) SAFODA SchemeSabah Softwood S/BLadang Jati Keningau S/BBoonrich S/BKebun Rimau Sdn Bhd:(a) Kebun Sg. Balung(b) Kebun Rimau EstateDukawan S/BSyarikat Lak S/BSyarikat Jusin Enterprise Sdn BhdTerusan Enterprise Sdn Bhd

10,003.881,614.20

24,151.350.00

12.15

0.000.000.00

397.580.000.00

116.700.00

2,214.461483.00

729.00

168.356.840.00

58.58121.00

81.00

0.000.000.000.000.00

0.000.00

46.000.000.000.00

10,120.581,614.20

26,365.811483.00

741.15

168.356.84

46.00456.16121.00

81.00

0.000.000.000.000.00

0.000.000.000.000.000.00

0.000.000.000.000.00

0.000.000.000.000.000.00

Sub-total 36,179.16 4,978.93 46.00 41,204.09 0.00 0.00

Total (Sub-total) 100,192.49 17,687.37 251.43 118,131.29 19,441.71 74,990.44

E. Lembaga Industri Getah Sabah (LIGS)

1. LIGS 0.00 71,779.00 0.00 71,779.00 0.00 0.00

Total 100,192.49 89,466.37 251.43 189,910.29 19,441.71 74,990.44

Table 20.1: Total area planted, rehabilitated and silviculturally treated as of 31st December 2007

Grand Total (Plantation, Enrichment Planting & Silviculture) : 284,342.22 Hectares

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Industrial Tree Plantation (ITP) Industrial tree plantation continued to be the most important activity carried out by almost all the SFMLA/LTL holders in 2007. The total area planted by them under the ITP program in 2007 was approximately 8,664 ha (see Chart 20.5), that is, an increase of about 1,930 ha compared to 2006’s achievement. SFI still had the most area planted (2,824 ha) and followed by Sapulut Forest Development Berhad (1,762 ha), Bornion Timber Sdn. Bhd. (1,354 ha), and Timberwell Sdn. Bhd. (1,210 ha). The other SFMLA holders involved in ITP program are TSH Resources Berhad (780 ha), Total Degree Sdn. Bhd. (281 ha), Lebih Hasil Sdn. Bhd. (235 ha), K.M. Hybrid Plantation Sdn. Bhd. (153.2 ha) and LUTH (64 ha). The major tree plantation species planted were Acacia mangium and rubber. As of 2007, the cumulated total area planted under the ITP program in Sabah is approximately 189,910 .29 ha (see Table 20.1).

Processes in ITP. Clockwise- the problem of degraded area in SFMLAHs; establishment of nursery; field planting; trees maintained to maturity; low-impact harvesting; harvested timberfor further processing.

Chart 20.5: ITP development by SFMLA/LTL holders in 2007

Forest Protection and ConservationForest protection especially from fire is a fundamentally important principle of SFM. This is because forest fires constitute a major threat to forests. Therefore, the protection of forests is one of the primary responsibilities of the Sabah Forestry Department, as well as, the SFMLA/LTL holders. Like in 2006, we continued to take the same measures on forest protection. Amongst them were to follow closely the fire management strategies and determining appropriate levels of protection, based on increased understanding of fire, ecology and economics. More reports on forest fires protection are highlighted in chapter 19 (under Forest Protection). Besides forest fire, it was our commitment to take appropriate measures (ground and aerial surveillance), to effectively protect our forests from any threat (e.g. forest encroachment and illegal logging) and activities such as that might impair the achievement of SFM objectives. Therefore, besides having better monitoring and control systems on RIL implementation, we continued to apply the forest management strategies, EIA mitigation measures and guidelines that have been developed to mitigate and to ensure long-term genetic, species and habitat diversity, and to conserve critical eco-systems such as, high conservation value forests. In addition, the demarcation of forest reserves’ boundaries as part of establishing formal, legally protected forest reserves continued to be carried out in 2007. The total distance surveyed and demarcated on the ground in 2007 was 496.79 km that involved 25 Forest Reserves in Sabah. The total cost involved was RM 1.970 million. In November, 2007, the SFD organized an International Conference on “Nature Conservation in Sabah: The Quest for the Gold Standard” at The Magellan Sutera Hotel, Kota Kinabalu. The conference aimed to provide updates on the efforts made by

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many government agencies and NGOs in enhancing nature conservation in Sabah. The conference also focused on the issues and challenges facing them. It was also well recognized that a well informed public was important in order to develop linkages and synergy amongst all levels and segment of society, in our quest for the gold standard in the area of nature conservation in Sabah. In this respect, an EXPO at the conference venue on 26th – 27th November 2007 and in Centre Point Complex from 29th November to 2nd December, 2007 was organized in conjunction with the conference. The EXPO was an integrated effort of many agencies from government agencies, NGOs and the private sectors, mainly the SFMLA/LTL holders.

Participants in Exhibition on Nature Conservation In Sabah

Sustainable Forest Management

Social Forestry ProjectsThere is a growing recognition on social forestry programs that involve communities in the protection and management of forest resources and provide incentives and benefits for sustainable forest utilization. This integration and development objectives in a project was one of the major activities of the SFD in 2007 to encourage protection of forest resources by appealing to the long term interests of the local communities. As reported in the previous Annual Reports, three major social projects (under the 9th Malaysia Project component) were actively pursued and implemented by the SFD in collaboration with the local communities in 2007 namely, Gana Resettlement Integrated Development Project in Kota Marudu district, the SFD-UNDP project in Mangkawagu FR in Tongod district and Biodiversity Restoration Project in Bengkoka FR in Pitas district. The highlights of the respective project progress can be referred in Chapter 21 (under Social Forestry). What was apparent through out the year was that the task of integrating conservation and development objectives was not an easy one. Integrating both objectives in a project on an equal basis proved to be especially difficult. Nevertheless, what the projects so far revealed was the commitment of the participants to continue the project to ensure their success and sustainability. In doing so, what has been suggested and agreed was that communication and trust between the SFD and the communities for both projects must be strengthened while the traditional adversarial relationship would have to be replaced by a partnership relationship.

Forest Monitoring and AuditingForest monitoring and auditing of SFM implementation are the most important activities of the SFD through out the year. Although all activities/operations were carried out under an approved FMP, PDP and AWP, the importance of monitoring could not be ignored. In this respect, the responsibility for monitoring was done at different levels of supervision through out the year to assess compliance and to evaluate progress and results. We used a combination of internal and third-party audits. The internal audits were from the SFD SFM Auditing Team and the DFO. Scrutiny and reporting was done on a quarterly

basis. At the end of the year, all our partners were assessed of their performance, and for those who have complied, were given a Certificate of Compliance. In 2007, six (6) SFMLA/LTL holders, that is, KTS Plantation Sdn Bhd, Bornion Timber Sdn Bhd, SFI, Sapulut Forest Development Sdn Bhd, K.M. Hybrid Sdn Bhd, and Lebihasil Sdn Bhd were awarded a Certificate of Compliance for their outstanding works in SFM implementation. As usual, our SFM implementation in DFR (FSC certified), on the other hand, was closely monitored and assessed by an external auditor (the SGS), while the logging operations in USM FRs, was closely monitored by an independent auditor, Global Forestry Sevices Inc. (GFS).

SFD’s SFM Auditing Team in TSH

FMU17A Auditing by an external forestry auditing firm

EIA Auditing by SFD in Lebihasil Sdn. Bhd.

Concluding RemarksThe quest for SFM in Sabah is progressing as advocated in this report although the transition from unsustainable forestry to SFM will require a substantial increase in funding from all sources. But there is a challenge: local finance is limited and external funding so far is unable to complement. In moving forward, we will explore and encourage all sources and mechanisms of funding if SFM implementation in Sabah can be accelerated. For this, both the government (SFD) and the SFMLA/LTL holders would have to work hand – in – hand and to adjust in such a way that the government needs to play its part in establishing the enabling environment and providing SFM incentives to the SFMLA/LTL holders and in return, the latter invest in full confidence and commitment to SFM.

Birds of the Sepilok Forest

Red-eyed Bulbul (Pycnonotus brunneus)

Long-billed Spiderhunter(Arachnothera robusta)

Fiery Minivet(Pericrocotus igneus)

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