The Status of Forest Governance and Services in Peninsular Malaysia

This paper was presented by Dato’ Nik Mohd Shah Bin Nik Mustafa, Deputy Director-General [Operation & Technical], Forestry Department Peninsular Malaysia at the seminar On Liberalization of Forestry and Environmental Services in Malaysia, organized by the Institute of Foresters Malaysia (IRIM) and MSPC at the Forestry headquarters in Kuala Lumpur on 12 March 2013.

FOREST RESOURCES IN PENINSULAR MALAYSIA

5.81 million ha (44.08% - 2011)

-State/Alienated Land (4.99%) 0.31 mil ha

-Production (Development) 0.31

PRF(84.50%)4.91 mil ha

Production (SFM) 1.99 (40.53%)

Protected (PA) 2.92 (59.47%)

National Park/Wildlife & Bird Sanctuary(10.15%)0.59 mil ha

Totally Protected (TPA) 0.59

Production 39.59%  2.30 mil ha

Protection 60.41%  3.51 mil ha

TYPES OF FOREST

PERMANENT FOREST RESERVED

•    Reserved forests were originally delineated in accordance with the Land Capability Classification as lands not suitable for mining or agriculture (Lee and Panton, 1971). It was gazetted under the National Forestry Act, 1984

STATE LAND FOREST

•    Forests that are theoretically targeted for conversion (World Bank, 1991); or land which could over the long term be co-opted into the PFE system or converted to some alternative form of land development, at the discretion of the State authorities.

ALIENATED FOREST

•    Forests that are under a private ownership

FOREST POLICY AND LEGISLATION

•    NFP 1978

•    APN 1984

•    AIBK 1986

•    CITES, REDD++, CC, CBD, Certification (Sustainability &  

      Legality)

•    NRE, MPIC, PTG, JAKOA, JAS(EIA & EMP), MTIB, FRIM

•    SFM- LCC, Mining, Agriculture Land-use, NFP-CFS

•    NFP- Plantation, TLC, Species, Bio-D, Watershed, Carbon

NATIONAL FORESTRY ACT 1984

•     Article 74(2) of Malaysian Constitution -  Land and Forest comes under the jurisdiction of the respective State Governments. State is empowered to enacts laws & formulate policy on forestry.

National Forestry Council (NFC) under the National Land Council was established  in 1971  in  order  to  facilitate  the  adoption  of   a coordinated  and  common  approach  to   forestry (between Federal and State Governments)

•      NFC serves as a forum for Federal and State Governments to discuss and resolve common issues relating to forest policy, administration and management. Currently, all these forest related issues are resolve directly in the National Land Council.

•    National Forestry Policy (NFP) 1978 (revised 1992) and  National Forestry Act (NFA) 1984 -   provide  a  common  approach relating to forest management practices in  all the States.

•    NFP and  NFA  -  provide  guidelines  for  management, conservation,  utilization,  development  and protection  of  forest in the country.

National Forestry Act 1984 constitutes some of the following section, namely:

•  All forest produce are property of the State Authority
(Section 4)

• Prohibition on taking of forest produce from Permanent  Reserved Forest land or State land unless licensed (Section 15)

•  Forest Management Plan, Forest Harvesting Plan to be carried into effect (Section 24)

Section 10,  NFA 1984,  allows  PRF  be classified into any of the following twelve (12) functional classes  for effective contribution to livelihood; and to further promote sustainable forest management and taking into account  the  multiple roles/uses  of  forest:

1.    Timber Production Forest under sustained yield

2.    Soil Protection Forest

3.    Soil Reclamation Forest

4.    Flood Control Forest

5.    Water Catchment Forest

6.    Forest Sanctuary for Wildlife

7.    Virgin Jungle Reserves

8.    Amenity Forest

9.    Education Forest     

10.  Research Forest

11.  Forest for Federal purposes

12.  Forest State Parks

FORESTRY RELATED LAWS AND LEGISLATIONS

— - Water Act  1920 (Act 418)

— - Land  Conservation  Act 1960 (Act 385)

— - National  Land  Code  1965

— - Protection  of  Wildlife  Act  1972 (Act 76)

— - Malaysian Timber Industry Board Act  1973

— - Malaysian Forest Research & Development Act 1965

— - Environmental Quality Act 1974 (Act 127)

— - National Park Act 1980 (Act 226)

— - Aboriginal Peoples Act 1954 (Act 134)

— - International Trade in Endangered Species Act 2008 (Act 686)

— - Protection of New Plant Varieties Act 2004 (Act 634)

— - National Policy on the Environment  2002

— - National Policy on  Biological Diversity 1998

FOREST MANAGEMENT SYSTEM

Sustainable Forest Management (SFM) as defined by the International Tropical Timber Organization  (ITTO, 1992)  is:-

“the process of managing forests to achieve one or more clearly specified objectives of management with regard to the production of continuous flow of desired forest products and services, without undue reduction of  its inherent  values and future productivity and without undue desirable effects on physical and social environment”

PRF - 4.91 million ha

-Manage for Production purposes

-Manage for Protection purposes

MANAGEMENT PRACTICES- SUSTAINABLE FOREST MANAGEMENT [SFM ]

ECONOMY, SOCIAL, ENVIRONMENT

Malaysian Criteria &Indicator 

(KETIDAKAKURAN CARs YANG DITUTUP SEMASA AUDIT TAHUN 2012

CARs dikekalkan- 49%, CARs- ditutup 51%)

No.	FMU	TAHUN AUDIT 2012
		CARs dikenakan	CARs ditutup
1.	Johor	5	2
2.	Kedah	4	2
3.	Kelantan	3	1
4.	Negeri Sembilan	3	0
5.	Pahang	12	6
6.	Perak	0	0
7.	Selangor	7	7
8.	Terengganu	9	4
JUMLAH		43	22

FOREST DEVELOPMENT PROGRAM

• Forest development projects

 - 7 projects / RM10.86 mil. (2011)

• Campaign 26 million trees

 - Period 2010 to 2014 ( as of 2011 – 10.46 mil.trees / 9,298 ha)

• Mangroves planting

 - In 2011, 298,611 trees / 87.25 ha coastline

• CFS, CDM, CBD, TLC
• Watershed management  -   89% of 841,608 ha gazzetted

FOREST GOVERNANCE & LIBERLISATION

Three broad categories:

Locations

Relating to locations typically include the harvesting

of timber in locations where logging is prohibited or in locations without a valid permit, whether on private lands, community-owned forests, or state-controlled forests. It also includes felling trees from prohibited sites within concessions  areas, such as areas with steep slopes or those located close to rivers or streambeds.

 

Practices

Relating to practices associated with commercial

timber harvesting typically involve a failure to comply with a jurisdiction’s laws and regulations governing the behavior of forestry concession-holders. Examples include failing to meet affirmative obligations to file forest management plans, failing to conduct social and environmental impact assessments, and failing to perform post-harvest reforestation activities. They may also include practices like operating or transporting logs without legal permits.

Products

Relating to products include the harvesting

of protected tree species, such as ‘Tualang’, mother trees,32 residual stand as well as the felling of trees below allowable size classes. Product restrictions on the basis of value added (logs, sawn wood, etc).

FDPM CLIENT’S CHARTER

-All requests for information available by FDPM were entertained within 1 week.

-Technical advices forwarded within 2 weeks.

-Unrestricted publications distribution within 2 weeks.

-In-service training notified within 2 weeks.

-Result on forestry course application by 1 month after interviewed.

-Forest development project reported soonest.

-Tendered results before 4^th month & payment in 1 month.

-Complaints acted within 3, 7, 14 days.

GOOD FOREST GOVERNANCE

• Political commitment and supportive policies for SFM.
• Coherent and coordinated policy and laws.
• Forest law compliance and enforcement.
• Effective regulations and administrative procedures.
• Appropriate and capable institutions.
• Monitoring of SFM and the cross sectoral forces that influence SFM.
• Decentralized forest management.

FOREST GOVERNANCE AND ENFORCEMENT

•  Forest enforcement are carried out to compliment the National Forestry Act on the ground.

•  Enforcement unit at the Forestry Headquarters in
Kuala Lumpur and Enforcement Unit in various state has being established to carry out enforcement works.

•  Cooperation with other enforcement agencies are carried out regularly to maximize man-power, equipment and efficiency in carry enforcement work

•  The establishment of 1NRE Enforcement team by the Ministry of Natural Resource and Environment shows the commitment to combat illegal logging and various forest offences

Statistics of Illegal Logging in Peninsular Malaysia

PENINSULAR MALAYSIA COMMITMENT

•      COMMITMENT TO SFM GOVERNANCE

- SFM is a serious commitment as evident in Malaysia’s century-old track record in respect to forestry policy and regulation, systems of

licensing, harvesting and forest management , enforcement, monitoring and inspection as well as continuous improvement. FDPM has a RM90 million development allocation. Forest management  towards a ‘true’ ecosystem approach

•      BENCHMARKING

- Participate in UNFF, FAO, ITTO, CITES, ASEAN Experts’ Groups and other international agencies. Peninsular Malaysia’s forest industry operates to ISO and other technical standards.

•      REGIONAL & BILATERAL COOPERATION

- Malaysia has shown considerable commitment to combating illegal logging both domestically and regionally. The level of illegal logging in Sabah and Sarawak to be small, in the order of one percent or less, as compared to the legal wood products trade (Blakeney, 2001), while illegal logging in Peninsular Malaysia is well under controlled. 

•      R&D

- Effective procedures for assessing changes in forest bio-diversity and water quality, appropriate mechanisms to resolve disputes, conflicts and grievances over tenure claims and use rights (“orang asli”), evaluate social impact of forest operations, document traditional forest-related knowledge and practices, species management and the equitable sharing of benefits.

•      CAPACITY BUILDING

- Develop and strengthen the institutional capacity, expertise and make available equipment for measuring, monitoring and reporting  (FRA & MAR).

•      LEADERSHIP

- Inter-agency coordination at both the Federal, States and forest management unit levels to ensure sustainable forest management, conservation and development of the forest resources.

•      OPENNESS &TRANSPARENCY

- Updating the National Forestry Policy 1978 that form the framework for the National Forestry Act 1984 revision via “stakeholder consultation”.

FORESTRY SERVICE CHALLENGES

Our Forests are more than just about trees - “Looking Beyond Trees”

Forest  is very crucial and critical for community livelihoods

• Source of  Foods, Shelter and Income for Local Community

•    Coastal Protection

•    Source of  Quality Water

•    Source of Fuel and Energy

•    Forest-Based and Eco-Tourism

•    Climate Change Adaptation and Mitigation

•    Conservation of Genetic Resources

•    Habitat for Forest Biodiversity (Flora and Fauna)

•    Wood and Other Non-Wood  Products

PUBLIC PARTICIPATIONS

*  The National Forestry Act (NFA), 1984 (Amended 1993) to incorporate new provision to deter the occurrence of forest offences

-Identifying hotspot areas with potential incidence of illegal logging activities throughout Peninsular Malaysia 

*  Formulated and implemented ‘National Action Plan for Combating Illegal Logging 2011-2015’

-Using remote sensing technology and geographic information systems (GIS) to track and monitor the activities of forest encroachment

-Promoting a Timber Licensing Assurance System (TLAS) under the Malaysian-European Commission Forest Law Enforcement, Governance and Trade (FLEGT) Voluntary Partnership Agreement (VPA)

 

* Enforcement Division and 1NRE in the Forestry Department Peninsular Malaysia and Ministry of NRE

•  Regular monitoring and reporting activities are also undertaken through frequent patrolling

FUTURE FORESTRY SCENARIO

• TO MAINTAIN 50% PRF. 
• TO  ESTABLISH 375,000 Ha UNDER FOREST PLANTATION.
• TO FULLY APPLY RIL IN FOREST HARVESTING.
• TO COMPLY WITH SFM BASED ON MC&I (2002), FLEGT-VPA, AILPB, LA, CBD, NAP etc.
• TO PROMOTE ECO-PARK AND STATE PARKS UNDER NATIONAL  ECOTOURISM PLAN.
• TO  INTEGRATE MULTIPLE-USE IN FORESTED WATERSHED.
• TO PRACTISE GREEN COURT.

• MORE FOREST /FORESTRY RELATED  R&D  WORK  AND INNOVATIONS.
• TO PRODUCE AND SUPPLY 60% LOGS FROM PLANTATION WOOD .
• TO TOTALLY BAN LOG EXPORT AND IMPLEMENTATION OF NATIP (IMP3) FOR DOWNSTREAM/VALUE  ADDED  WOOD-BASED INDUSTRIES.
• TO ENCOURAGE ALTERNATIVE  USE AND SOURCED NATURAL FIBERS FROM OIL PALM AND COCONUT BIOMASS TO ACHIEVE RM 53 B  EXPORT EARNINGS.
• TO DEVELOP RICH BIO-D, INCREASE USE OF MINOR FP (BAMBOO & RATTAN) FOR NICHE MARKETS.
• TO PARTICIPATE IN CDM PROJECTS (post-KYOTO), CARBON TRADING AND REDD++.
• TO INTRODUCE FOREST GREEN TECHNOLOGY.
• TO EXERCISE DIGITAL FORESTRY.

CONCLUSIONS

• FORESTRY DEPARTMENT OF PENINSULAR MALAYSIA   WILL CONTINUE TO FULLY  COMMITTED  IN  SUSTAINABLE FOREST MANAGEMENT (SFM) BY STRENGTHENING FOREST GOVERNANCE THROUGH IMPROVED TRANSPARENCY AND ACCOUNTABILITY.
• GOOD FOREST GOVERNANCE IS RELEVANT FOR ITS IMAGE IN LIBERALIZATION OF PRACTICES AND SUSTAINING THE RESOURCES TO ENABLE MULTIPLE CONTRIBUTIONS TO SOCIETY NEEDS, ECONOMIC DEVELOPMENT AS WELL AS ENVIRONMENTAL PROTECTION.

FORESTRY EXPERTS IN VARIOUS FIELD TO BE TRAINED  WITH COLLABORATION FROM OTHER GOs AND NGOs TO MAXIMISE THE BENEFITS FROM FOREST SERVICES.

Forestry and Environmental Perspectives in Light of Liberalization of Services Industry

The paper was presented by Datuk Dr Abdul Rahim Nik, Deputy Secretary General (Environmental Management), Forestry Development Division, Ministry of Natural Resources & Environment Malaysia, at the seminar On Liberalization of Forestry and Environmental Services in Malaysia, organized by the Institute of Foresters Malaysia (IRIM) and MSPC at the Forestry headquarters in Kuala Lumpur on 12 March 2013.

  

Introduction 

YAB Prime Minister at the Second Stimulus Package presentation (2009) 

• announced that Government will take steps to liberalize the services sector.
• to enhance the level of competitiveness of the services sector in the country.

Liberalization of the services sector: 

-open to the foreign companies to offer their service with less restriction imposed by the government 
-the business is allowed to have 100% of foreign equity

Four modes of supply: 
        (i)    Cross-border trade

  (ii)   Consumption abroad

  (iii)  Commercial presence

  (iv)  Movement of natural persons

Rational for Liberalization

• Attract foreign direct investments (FDI)
• Enhancing the competitiveness of services industry
• Creating a conducive business environment
• Create higher income employment opportunities
• Enhance cooperation esp in terms of capacity building and transfer of knowledge/ technology/ expertise into the services sector.

Current Policies Governing Forestry and Environment in Malaysia

National Forestry Policy 1978:- 
Objectives:

• to conserve and manage the nation’s forest based on the principles of sustainable management.
• To protect the environment as well as to conserve biological diversity, genetic resources, and to enhance research and education.

-Was revised in 1992.

Current initiative - in the process of amending, taking into consideration current concerns such as climate change, forest plantation, enforcement etc.

National Policy on the Environment:- 
Objectives :

•    A clean, safe, healthy and productive environment for present and future generations

•    Conservation of the country’s unique and diverse cultural and natural heritage with effective participation by all sectors of society 

•    Sustainable lifestyles and patterns of consumption and production

National Policy on Climate Change:

Policy Statement:

• Ensure climate-resilient development to fulfill national aspirations for sustainability.

Objectives:

• Mainstreaming climate change through wise management of resources and enhanced environmental conservation resulting in strengthened economic competitiveness and improved quality of life;

FORESTRY & ENVIRONMENTAL PERSPECTIVES IN LIBERALIZATION

Service Sectors Liberalized:

15 broad sectors and over 40 sub sectors have been liberalized. 15 broad sectors include:

•      Computer and related services

•      Health and social services

•      Business services

•      Sporting and other recreational services

•      Supporting and auxiliary transport services

•      Rental/leasing services

•      Transport

•      Tourism

•      Telecommunication services

•      Healthcare

•      Professional services

•      Environmental services

•      Distributive trade

•      Education

•      Courier services

Promoted Activities

Environmental Management:

• Energy conservation/efficiency
• Energy generation, using renewable energy sources
• Storage, treatment and disposal of hazardous waste
• Recycling of agricultural waste and agricultural by-products

Environmental Services Sector:

• 4 sub sectors:

Sub-sector

i.   Waste Water Management

ii.   Cleaning Services of Exhaust Gases

iii.  Noise Abatement Services

iv.  Nature and Landscape Protection Services

Matter

i.    Covering removal and treatment of industrial effluents

ii.   Covering services provided at industrial premises to remove air pollutants including monitoring of mobile emissions and implementation of control systems or reduction programmes

iii.   Covering only monitoring programmes, and installation of noise reduction and screens in residential, commercial and industrial premises

iv.  Covering contaminated soil clean-up and remediation

Services related to forestry have not been liberalized by Malaysia for the following reasons:

• natural resources are a sovereign right that must be safeguarded
• national security and ILCs issues
• natural resources and forest products should be used wisely for domestic benefit
• harvesting operations are under the jurisdiction of the state.
• liberalization has implications for SFM and conservation efforts
• forest rehabilitation activities are carried out solely by the government

Possible Linkages to Forestry Sector:

Services related to the forestry sector:

• Harvesting operations
• Forest certification
• Forest monitoring and surveillance
• Forest products development

Key Principles in Negotiating on Environment Related Provisions:

Malaysia will follow the below principles which will drive negotiation on environment provisions:

• Trade should not be linked or in any way conditional on environmental performance.
• Ensure the sovereign right of the nation is protected in which the Government (Federal and State level) are able to regulate our own laws, rules, regulations and policies.

• Ensure the objective of Sustainable Development is reflected in all the international trade agreements in line with our commitments in all International Treaties.
• Careful in ensuring trade agreements won’t supersede any International Treaties that we are party to.
• Committed to ensuring that the environment standards should not be used for trade protectionist purposes.

ISSUES REGARDING ENVIRONMENTAL GOODS AND SERVICES (EGS)

•    No agreed definition or classification for EGS.

•    Varied definitions of EG - range from goods used for managing waste and pollution to innovations for large-scale production of renewable energy. Some prefers “environmentally preferable products” i.e products that cause significantly less environmental harm than alternative products used for the same purpose.

WTO Negotiations:

Pursuant to paragraph 31(iii) of the WTO’s 2001 Doha Ministerial Declaration, negotiations on the liberalization of environmental goods & services continues to be essentially at a standstill.

• Developed countries: prefer to see a much more liberalized regime for environmental services.
• Developing countries: prefer to be more cautious due to concerns about being able to retain regulatory policy space with respect to environmental services.

Developing countries concerns:

• List-based approach preferred by developed countries –

*Export benefits from tariff liberalization in the listed goods accrue mainly to developed countries

• Product characteristics – developing countries opposed to the use of production or process methods (PPMs)

CONCLUDING REMARKS

• Liberalization of services can be done by a country on its own volition, where it can control the type, the limit and the pace of liberalization.

* forestry – status quo, has policies in placed

* environmental services - done through case by case basis

• Interaction between economic activity and environment are increasingly recognised locally and internationally. A balance based on national priority and circumstances is crucial while acting responsibly on environment matters.  
•  
• “Malaysia must be a nation that is fully developed along all the dimensions: economically, politically, socially, spiritually, psychologically and culturally. We must be fully developed in terms of national unity and social cohesion, in terms of our economy, in terms of social justice, political stability, system of government, quality of life, social and spiritual values, national pride and confidence.” - Tun Dr Mahathir Mohamad

MCMC to monitor, control use of social media in GE13 to prevent abuse

The Malaysian Communications and Multimedia Commission (MCMC) is looking into suitable methods to monitor and control the use of social media in the 13th general election.

Deputy Information Communications and Culture Minister Datuk Maglin Dennis D’Cruz said this was to ensure that the social media would not be abused by irresponsible quarters to achieve their own political agenda.

Prime Minister Datuk Seri Najib Tun Razak said the GE13 would be the first ‘social media election’ in the country where internet would be widely used as a campaign tool.

The MCMC will monitor all users of social media, regardless of their political beliefs, to ensure peace and smooth running of the GE13, Maglin said after opening the ‘Know Your Neighbours’ programme organised by Penang Information Department at Taman Bagan flats today.

The deputy minister said the monitoring of the social media was vital as certain quarters were only good at making baseless allegations and spreading lies to gain political mileage, adding that he himself had once fallen victim to such lies and accusations.

Maglin said the culture of making baseless allegations and distorting facts among politicians was indeed unhealthy and would only confuse the public, especially the young generation.

“They should not be so selfish and lie just for the sake of gaining political mileage because what matters most in politics was to ensure that the people will live in peace and harmony.

“Therefore, the public, especially the young voters should be wise enough to do their parts in selecting the right government with vast experience in managing the country, so that their future will be secured.

“Don’t believe the lies and accusations made by those whose aim is only to create disharmony among the people,” he added.