malaysia: sustainable forest...

MALAYSIA:SUSTAINABLEFOREST MANAGEMENT

MARCH 2007

1MALAYSIAN TIMBER COUNCIL

INTRODUCTION 3

BACKGROUND ON MALAYSIA AS A MAJOR TIMBER PRODUCER 5Land Area 5Main Products 6Main Markets 6Forest Management Policies 6Regulatory & Other Bodies 8

KEY FORESTRY AND FOREST INDUSTRY ISSUES 12

MALAYSIA’S STAND ON THE ENVIRONMENT 20

OUR COMMITMENT 22

ACKNOWLEDGEMENT 24

BIBLIOGRAPHY 24

GLOSSARY OF ACRONYMS 24

CONTENTS

2 MALAYSIAN TIMBER COUNCIL


INTRODUCTION

This paper summarises Malaysia’s practices in SustainableForest Management (SFM) and provides greater clarity of herpolicies and procedures with regard to utilisation of forestresources and timber production. As a leading exporter oftropical timber and timber products with a legacy of orderlygrowth based on a sound foundation of environmentalmanagement, Malaysia has always subscribed tointernational best practices that ensure protection andconservation of its environment.


BACKGROUND ON MALAYSIA ASA MAJOR TIMBER PRODUCER

FORESTED LANDWith a land area of more than 32.83 millionhectares, Malaysia is a federation of 13 statesand three Federal Territories; 11 of these statesand the Federal Territories of Kuala Lumpur andPutrajaya covering 13.16 million hectares arelocated in Peninsular Malaysia, while the statesof Sabah, together with the Federal Territory ofLabuan covering 7.37 million hectares andSarawak covering 12.30 million hectares, arelocated on the island of Borneo.

Malaysia enjoys one of the highest percentagesof forested land among developing countriessuch as Brazil, Indonesia, Philippines andThailand (FAO, 2005). A well-forested country,more than 59% (19.42 million hectares) of itsland area is under forest with 5.88 million ha inPeninsular Malaysia, 4.30 million ha in Sabahand 9.24 million ha in Sarawak. The tree coverincreases to more than 76% (25.90 millionhectares) if crops such as rubber, oil palm,cocoa and coconut are taken into consideration.Other land usage amounts to a mere 24%.

Of the total 19.42 million hectares of forestedland, 74% or 14.29 million hectares are gazettedas Permanent Reserved Forests (PRFs) underthe National Forestry Act 1984 and relevantstate enactments and ordinances. Another 1.83million hectares outside the PRFs are gazettedas National Parks and Wildlife Sanctuaries undervarious legislations. These 16.12 million hectaresare forests to be maintained in perpetuity by law.This is a fundamental pillar of Malaysia’scommitment to SFM.

Within the PRF, 3.11 million hectares (22%) are designated as protection forest while theremaining 11.18 million hectares (78%)constitute production forest, where commercialharvesting of timber on a predeterminedrotational cycle is permitted. Production forestrepresents only about 57% of the total forestedarea in Malaysia.

PENINSULARMALAYSIA

(45% forest cover)

SARAWAK(69% forest cover)

SABAH(59% forest cover)


Beyond this, forested areas that are not gazettedas PRF, ie stateland or alienated land, can beconverted to other uses in the context ofbalanced long-term development; however, this amounts to not more than 17% or 3.3 millionhectares (2005 figures) of the total forested area.

MAIN PRODUCTSMalaysia has been producing tropical hardwoodproducts for more than a century. Today, itremains one of the world’s leading exporters oftropical hardwood products (logs, sawntimber,plywood, medium density fibre board,chipboard, veneer and other panel products,mouldings, builders’ carpentry and joinery,wooden furniture as well as rattan products).

According to FAO statistics (2006), Malaysia’sexport value of timber and timber products in2004 was USD3.53 billion, compared toCanada (USD29.4 billion), Germany (USD15.91billion), the USA (USD15.69 billion), Finland(USD13.54 billion), Sweden (USD12.9 billion),Austria (USD6.21 billion) and China (USD5.2billion). The Malaysian timber industry in 2005contributed not more than 4% of Malaysia’sGross Domestic Product (GDP).

Over recent years, production of logs fromMalaysia’s natural forests has been decreasingsteadily. This is attributed mainly to effectiveimplementation of SFM practices, including theimposition of tighter laws, policies and regulationsgoverning forest harvesting. To promote value-added production and downstream processing,an export ban on logs originating from naturalforests in Peninsular Malaysia was implementedin 1987.

Correspondingly, log export quotas have beenimposed by Sabah and Sarawak.

MAIN MARKETSThe key importers of Malaysian timber productsinclude Belgium, China, Germany, Hong Kong,India, Italy, Japan, the Netherlands, Pakistan,Saudi Arabia, Singapore, South Korea, Taiwan,Thailand, United Kingdom, USA and Viet Nam.

FOREST MANAGEMENT POLICIESHistorically, land matters came under thejurisdiction of the respective state governmentswhich were therefore empowered to enact lawsand regulations for forest management.

The coordination of a common approach toforest management was facilitated through theNational Forestry Council (NFC) which wasestablished by the National Land Council (NLC)in 1972. Since then, the NFC has been at thehelm of harmonization of policies betweenFederal and State Governments in respect offorest management, particularly to ensurecontinuing SFM. The NFC is chaired by theDeputy Prime Minister and its membershipcomprises the Chief Ministers of the 13 states,along with representation by the heads of allforestry departments in Peninsular Malaysia,Sabah and Sarawak as well as relevant FederalMinisters responsible for Natural Resources andthe Environment, Finance, Trade, Agricultureand Agro-based Industries, Plantation industriesand Commodities, Science, Technology andInnovations.

The NLC is responsible for formulating forestsector policies along with the promotion andcontrol of utilisation of land for mining andagriculture. The NLC endorses all decisions ofthe NFC while the responsibility to implementthese decisions lies mainly with the respectivestate governments.

Various forest enactments and ordinances hadbeen formulated and enforced by the respectivestate authorities since the early 1900’s to ensureeffective forest management. In 1978, the NFCformulated the National Forestry Policy (NFP) byconsolidating existing forestry policies of thevarious states. The NFP, which contains asignificant number of salient provisions toensure SFM, was subsequently approved andadopted by the NLC. Since then, severalcommon policies and procedures have evolvedat federal and state levels to reflect SFMrequirements and international best practices.

The main objectives of the NFP are two-fold:a. Conserve and manage the nation’s forests

based on the principles of sustainablemanagement

b. Protect the environment, to conservebiological diversity, genetic resources and to enhance research and education

In 1992, the NFP was revised to address ingreater depth the requirements for SFM, andincluded references to conservation of biologicaldiversity, sustainability, and recognition of the roleof local communities in forest development. These provisions reflected the commitments ofthe United Nations Conference on Environmentand Development (UNCED) on SFM including:a. Conservation for biological diversity

b. International technical collaboration aimed atfostering closer international co-operation inthe quest to achieve SFM

c. The involvement of local communities,especially those living near forest fringes inagroforestry through the planting of forestfruit tress to conserve forest resources

d. The development of additional forestrecreation facilities for ecotourism

TOTAL FOREST AREA19.42

Permanent ReservedForests(74.0%)

14.29

National Parks/Wildlife& Bird Sanctuaries

(9.0%)

1.83

State Land/Alienated Land

(17.0%)

3.30

Production(SFM)

11.18

TotallyProtected

3.11

Totally Protected

1.83

Production(Conversion)

3.30

FOREST LAND USE IN MALAYSIA - 2005 (MILLION HA)

SOURCE: FORESTRY DEPARTMENTS OF PENINSULAR MALAYSIA, SABAH & SARAWAK.


e. The establishment of forest plantations,including high-quality timber plantations,with the active participation of the privatesector.

The NFP dedicates sufficient areas of PRFsstrategically located throughout the country inaccordance with the concept of rational landuse. The PRFs are managed and classifiedunder four major functions:

a. Protection Forestfor ensuring favourable climatic and physicalconditions of the country, for safeguarding of water resources, soil fertility andenvironmental quality, preservation ofbiological diversity and the minimisation ofdamage by floods and erosion to rivers andagricultural lands

b. Production Forestfor the supply in perpetuity, at reasonablerates, of all forms of forest produce whichcan be economically produced for domesticuse and export

c. Amenity Forestfor the conservation of adequate forestareas for recreation, ecotourism and publicawareness

d. Research & Education Forestfor the conduct of research, education andthe conservation of biological diversity

In 1984, a key milestone was reached when theMalaysian Parliament approved the NationalForestry Act and Wood-based Industries Act,replacing the Forest Enactment of 1934, for thepurpose of promoting uniformity of the laws ofthe States of Malaysia with respect to theadministration, management and conservation of forests and forestry development.

In tandem with the revised NFP, and to furthersafeguard forest resources from illegal loggingand timber theft, the National Forestry Act 1984was amended in 1993 to incorporate additionalprovisions for SFM, by way of including morestringent penalties for forest offences including,for example, the illegal felling of trees and toprovide for mandatory imprisonment forconvicted illegal loggers. The police and armed

forces were given new powers of surveillance inthe forestry sector, with the aim of curbing illegallogging, encroachment into forest areas andtimber theft.

Sarawak amended its Forests Ordinance 1954on several occasions. With the latest 2003amendment, provisions were made for plantedforests, to strengthen enforcement powers ofForest Officers and to introduce stiffer penaltiesfor infringement of the Ordinance. The SarawakForestry Corporation Ordinance was alsointroduced in 1995 to help strengthen themanagement of the state’s forest.

The Sabah Forest Enactment 1968 wasformulated to regulate and control activitiesrelated to removal of forest produce.Subsequently, Forest Rules 1969 were adoptedin Sabah to support the implementation of theEnactment. The Forest Rules govern theextraction, transportation, licensing and taxationof forest produce. Since then, furtheramendments were made in 1984, 1992 and1994 to strengthen the provisions related toenforcement activities.

Yet another milestone was reached in 1994,when Malaysia established a National Committeeon Sustainable Forest Management to coordinatethe implementation of all forestry activities, theobjective being to ensure that the forestresources in the country are managed tointernational best practices. This committeeformulated the Malaysian Criteria & Indicators forSustainable Forest Management (MC&I), basedon the Criteria & Indicators (C&I) of theInternational Tropical Timber Organisation (ITTO),first adopted in 1992. Malaysia’s standards alsoevolved from the work under the aegis ofMalaysia and The Netherlands Joint WorkingGroup which in 1996 undertook a pilot study on timber certification. The MC&I finally provideda basis for the first set of standards used by theMalaysian Timber Certification Council (MTCC)scheme. The creation of the MTCC in 1999 to develop and operate a voluntary andindependent national timber certification schemewas a significant achievement in the evolution ofgood forest management practices in Malaysia.

Indeed, over the years, a number of forestryprogrammes, projects and activities wereinstitutionalised in Malaysia to raise the bar onSFM. These include the National Forest Inventoryinstituted in the 1970’s, and carried out every 10 years on all forested lands to determine thestatus and composition of Peninsular Malaysia’sforest resources and to facilitate bettermanagement and planning. Forest mapping isalso undertaken using the GeographicInformation System (GIS) and remote sensingtechniques to monitor changes that occur withinthe forests. Malaysia’s research into forestmanagement includes growth, yield and mortalitystudies under the various cutting regimes.

The NFP and other administrative policies andinstitutions are revised from time to time to meetprevailing challenges and requirements and toimprove the management, conservation andsustainable development of Malaysia’s naturalforest resource. In addition to the NationalForestry Act 1984, Sabah Forest Enactment 1968and Sarawak’s Forests Ordinance 1954, relatedlaws which augment SFM include, among others:

• Water Act 1920 • Aboriginal Peoples Act 1954• Land Conservation Act 1960• Protection of Wildlife Act 1972• Environmental Quality Act 1974• National Parks Act 1980• Sarawak Rivers Ordinance 1993• Water Ordinance 1994 (Sarawak)• Water Resources Enactment 1998 (Sabah) • Biodiversity Enactment 2000 (Sabah).

Malaysia has also ratified several international and regional conventions and protocols. These include United Nations FrameworkConvention on Climate Change (UNFCCC),United Nations Convention on BiologicalDiversity (CBD), Convention on InternationalTrade in Endangered Species of Wild Fauna and Flora (CITES), Convention on Wetlands ofInternational Importance Especially as WaterfowlHabitat (RAMSAR), Cartagena Protocol onBiosafety, Convention Concerning theProtection of the World’s Cultural and NaturalHeritage (UNESCO) and International TropicalTimber Agreement (ITTA).


All these developments have reinforcedMalaysia’s position as a responsible producerand supplier of quality logs, sawn timber andwood products. Additionally, Malaysia is amember of the International Tropical TimberOrganization (ITTO), an intergovernmentalorganization promoting the conservation andsustainable management, use and trade oftropical forest resources. Malaysia is also activein various initiatives such as the Asia ForestPartnership which promotes sustainable forestmanagement in Asia through addressing suchissues as control of illegal logging, control offorest fires, rehabilitation and reforestation ofdegraded lands, good governance and forestlaw enforcement as well as developing capacityfor effective forest management.

Malaysia has also been active in the following:

• European Union Action Plan on Forest LawEnforcement, Governance and Trade (EUFLEGT) - which aims to combat illegal loggingand reduce trade in illegally harvested timberthrough a proposed voluntary partnershipagreement (VPA)

• EU FLEGT Timber Trade Action Plan (TTAP) -a private-sector initiative for sourcing of legaltimber which is undertaken on a voluntarybusiness to business basis; and

• The East Asian FLEG Process - Malaysiaparticipates in periodic meetings of the EastAsian FLEG Task Force which looks intonational and regional initiatives for forest lawenforcement and governance

• Bilateral meetings as well as regionalcooperation to foster legal and responsibletrade in timber products e.g. the ASEANWood-Based Industry Integration (ASEANRoadmap) Meetings, TREATI Workshop onTrade in Wood Products and Pan-ASEANTimber Certification Initiative.

As a responsible global player, Malaysia regularlyparticipates in key international forums, therebycontributing to stakeholder dialogue and debateon forestry issues while benchmarking herselfagainst best practices.

REGULATORY AND OTHER BODIES

FORESTRY DEPARTMENT PENINSULARMALAYSIA (FDPM)The FDPM is under the Ministry of NaturalResources and Environment. It has itsheadquarters in Kuala Lumpur with 10 StateForestry Departments and 33 District ForestOffices located throughout Peninsular Malaysia.The FDPM’s headquarters is responsible forformulating policies and providing advice andtechnical assistance to the State ForestryDepartments in forest management anddevelopment, forestry sector planning and relatedindustries, forest operational studies, training,human resource development, and maintenanceof experimental and demonstration stations.

Article 74 (2) of the Federal Constitutionprovides that land and natural resources arematters under the jurisdiction of the respectivestate governments. The states are empoweredto enact laws and policies on forestryindependently and a State Forestry Director is appointed to manage the administration and regulation of forest harvesting; revenuecollection which includes premiums, royalties,deposits, cess and other charges; themanagement and development of forestresources; as well as planning and coordinationof the development of forest-based industries.

States, through their respective ForestryDepartments, constitute PRFs and classify themfor timber production and protection purposessuch as water catchment areas, wildlife reservesand bird sanctuaries, virgin jungle reserves(VJRs), state parks and amenity forests. All forestproduce from PRFs or state land remain theproperty of the state and all exploitation of forestproduce must be licensed and administered bythe state. State Forestry Directors have thepower to arrest, search, seize and investigateforest-related offences, and impose fines andprosecute offenders.

PRFs are managed under 10-year state ForestManagement Plans (FMPs), while the respectiveDistrict Forest Office (DFO) prepares the five-year working plan. Harvesting plans for each

licensed area, prepared by the licence holderand approved by the DFO, is a pre-requisite forthe issuance of a harvesting licence.

In accordance with the requirement of theNational Forestry Act 1984, the State ForestryDepartments are expected to submit annualreports to both the State Authority as well as theFDPM. The Director General of Forestryexercises a degree of supervision with respect toforest sector planning and management over theState Forestry Departments, including annualmanagement audits for quality assurance.

SABAH FORESTRY DEPARTMENT (SABAH FD)The Sabah FD, with its headquarters located inSandakan, is tasked with the implementation oflaws relating to forest conservation, constitutionof forest reserves, management and regulationof forest harvesting, collection of revenue andissuance of long-term Sustainable ForestManagement License Agreements (SFMLAs).

These SFMLAs, with a tenure of 100 years, werefirst introduced in 1997 on the basis that long-term security of land tenure provides licenseeswith the incentive to build up forest resources overtime. Sabah uses the SFMLA to control themanagement of its PRFs. SFMLAs specifyobligations of the licence holders with regard tonative rights, local community development, forestdevelopment and conservation, monitoring andreporting, including preparation and submission ofannual workplans and quarterly progress reports.To date, some 18 SFMLAs have been issued;however, two have been withdrawn on thegrounds of non-compliance with the terms andconditions of the licence agreements.

FORESTRY DEPARTMENT WORKERS MEASURING LOGS FOR ROYALTYCALCULATION.


SARAWAK FOREST DEPARTMENT(SARAWAK FD) Since the establishment of the Sarawak ForestryCorporation (SFC) (see below), the Sarawak FDnow concentrates on statutory and regulatoryfunctions. The separation of powers provides anadditional level of supervision and control overforestry matters and is seen as a devolution inthe interest of greater efficiency in Sarawak.

SARAWAK FORESTRY CORPORATION (SFC)SFC is a statutory body incorporated under theSarawak Forestry Corporation Ordinance, 1995,passed by the State Legislative Assembly. Underthis Ordinance, the SFC is assigned and gazettedwith the functions, assets and legal authority toperform and enforce the Forests Ordinance, WildLife Protection Ordinance 1998, and NationalParks and Nature Reserve Ordinance, 1998.

THE MALAYSIAN TIMBER INDUSTRYBOARD (MTIB)The MTIB was established in 1973 as astatutory body under the Ministry of PlantationIndustries and Commodities (formerly known as the Ministry of Primary Industries) and itsjurisdiction covers Peninsular Malaysia andSabah. Taking its cue from the MTIB Act, theMTIB has for the past 30 years played animportant role as the authority to regulate anddevelop the timber industry. It has responsibilityfor the registration of timber exporters andimporters, suppliers, processors and graders,the issuance of timber export and importlicences, and the inspection of export/importprocedures and physical products.

The MTIB also acts as the CITES ManagementAuthority for timber and, together with certain

authorities such as the Royal Malaysian CustomsDepartment, the Marine Police, the MaritimeMalaysia Enforcement Agency and PortAuthorities, conducts enforcement activities at allexit and entry points along the Malaysian coastlineand elsewhere. It is important to note that theMTIB enforces regulations pertaining to theinternational Harmonised Standards (HS) codingsystem for a broad spectrum of timber productsto monitor and ensure legal trade, thereby playinga key role in the continuing sustainabledevelopment of Malaysia’s timber industry.

SARAWAK TIMBER INDUSTRYDEVELOPMENT CORPORATION (STIDC)The STIDC was established in June 1973 underthe Perbadanan Perusahaan Kemajuan KayuSarawak (PUSAKA/STIDC) Ordinance 1973,following the recommendation of the Food andAgriculture Organisation (FAO) of the UnitedNations, which conducted a comprehensiveforest inventory in the state from 1968 to 1972.STIDC’s duties, as governed by the STIDCOrdinance of 1973, which was amended in2006, are to regulate and control themanufacture of timber and timber products,their sale, distribution and marketing. STIDCplays a role in planning, co-ordinating anddeveloping timber industries in Sarawaktowards the optimum and efficient utilisation oftimber resources by encouraging downstreamprocessing and product diversification. Includedin its remit are the determination of standardsand quality through third-party verification, theregulation of export and import trade practicesthrough an export licensing scheme, registrationand grading, and the issuance of permits fortimber exports and imports under the CustomsAct 1967. As one of its assurances of SFM, theSTIDC issues a Sustainable Forest Managementand Legality Statement to exporters who havepassed its stringent requirements.

MALAYSIAN TIMBER COUNCIL (MTC)The Malaysian Timber Council (MTC) wasfounded in January 1992 to promote thedevelopment of the Malaysian timber-basedindustry and the marketing of associatedproducts worldwide. The MTC’s activities aremanaged through its headquarters in KualaLumpur and regional centres located in London,Dubai and Shanghai. Representing the interests

of the Malaysian timber industry, its mission is toensure the sustainability of the Malaysian timberindustry by improving its competitiveness,maintaining its continuing viability, enhancingmarket access and creating trade opportunities.

The Council’s main objectives are:

• expand market opportunities for timberproducts

• To nurture Malaysia’s timber industry byconducting industrial studies and supportingskills development

• To supplement and complement raw materialsupply to the local timber industry through off-shore sourcing

• To provide information services to the timbertrade and industry

The Chairman and Board of Trustees determinethe policy directions and oversee the managementof the MTC. There are 10 members consisting of arepresentative each from the following, along withan independent member from the timber industry:

• Malaysian Wood Industries Association• Timber Exporters’ Association of Malaysia• Malaysian Panel-Products Manufacturers’

Association• Malaysian Wood Moulding and Joinery

Council• Malaysian Furniture Industry Council• Ministry of Plantation Industries and

Commodities• Malaysian Timber Industry Board• Forestry Department Peninsular Malaysia• Association of Malaysian Bumiputera Timber

and Furniture Entrepreneurs

The MTC has played a significant role inmanaging perceptions of the Malaysian timberindustry internationally and in engaging withstakeholder communities in ongoing dialogue.

TIMBER CERTIFICATION AUDITORS CHECKING ON THE MARKING OF A SEED TREE.


MALAYSIAN TIMBER CERTIFICATIONCOUNCIL (MTCC)MTCC is an independent organisation whichbegan operations in January 1999 to develop andoperate a voluntary national timber certificationscheme in Malaysia to ensure continued viabilityand sustainability of Malaysia’s forest industry. It isgoverned by a Board of Trustees comprisingrepresentatives from the timber industry, academicand research institutions, non-governmentalorganisations and government agencies.

The MTCC Certification Scheme began in October2001 using a phased approach - necessarybecause of the challenges faced in managing andassessing the complex tropical forest. The currentstandard used is the Malaysian Criteria, Indicators,Activities and Standards of Performance for ForestManagement Certification, also known as MC&I(2001). From 2006, the MTCC has started to usea new standard [MC&I (2002)], which uses thePrinciples & Criteria of the Forest StewardshipCouncil (FSC) as its template.

The present institutional arrangement for theMTCC Scheme involves not only the issuance ofcertificates but also dealing with appeals, andworking with independent assessors and peerreviewers to ensure proper checks and balances.Meanwhile, the MTCC collaborates with theProgramme for the Endorsement of ForestCertification (PEFC) to gain its endorsement underthe PEFC mutual recognition framework.

In line with efforts to benchmark to internationalmarket expectations, in 2001, a multi-stakeholderNational Steering Committee (NSC) wasestablished which subsequently formulated theMC&I (2002) through a transparent and

participatory process involving regional andnational-level consultations amongst relevantstakeholders in Malaysia.

MTCC issues two types of certificates - aCertificate for Forest Management to ForestManagement Units (FMUs) and a Chain-of-Custody (COC) Certification to timber-productmanufacturers or exporters which providesassurance to buyers that MTCC-certified timberproducts supplied by these companies originatefrom certified FMUs. So far, 33% of the PRFs inMalaysia have been certified, providing assurancethat the permanent forests within the FMUs aresustainably managed to the requirements of thecertification standard.

The MTCC scheme has been accepted asproviding assurance of legal or sustainable timber in many countries. Wherever traceabilityand legality are in question, buying MTCC-certified timber is the solution. The authoritiesand organisations that have given recognition tothe MTCC scheme include the Danish Ministry ofthe Environment; the UK Department ofEnvironment, Food & Rural Affairs (DEFRA); theRoyal Horticultural Society of the UK; the NewZealand Ministry of Agriculture & Forestry; theFrench Ministry of Environment and SustainableDevelopment and the Ministry of Agriculture,Food & Rural Affairs; and the Forestry Agency,Ministry of Agriculture, Forestry & Fisheries ofJapan. Meanwhile, a conditional recognition was accorded by the Hamburg City Authority of Germany for a two-year period beginning June 2006.

TREE GIRTH MEASUREMENT AND INVENTORY WORK.


KEY FOREST INDUSTRY ISSUES

1ST MALAYSIA – EUROPEAN COMMISSION SENIOR OFFICIALS MEETING ONFOREST LAW ENFORCEMENT GOVERNANCE & TRADE (19 JANUARY 2007), MIRI.SUSTAINABLE FOREST

MANAGEMENT (SFM)Tropical rainforests help assure globalenvironmental balance along with temperateforests, oceans etc. According to the Food andAgriculture Organization (FAO), the world’sforests decrease annually by 12 millionhectares. The average annual forest loss inMalaysia during the 1990s was an estimated237,000 hectares or only 1.2% according to the FAO in a 2005 Report. This loss is largelyattributable to planned land-use changes in linewith national development policies.

The cornerstone of Malaysia’s forest managementis the setting aside of vast forested areas as PRF.The PRF is gazetted to ensure greater security forprotection and strong measures of surveillance,enforcement and deterrent punishment are inplace to ensure the integrity and security of thePRF area. It is universally accepted that landdesignated as PRF is considered land undersustainable management. This was a finding of anITTO report Status of Tropical ForestManagement, released in 2005. ITTO studieshave continually stressed the need for countries to establish PRF’s.

The ITTO is an intergovernmental organisationpromoting the conservation, sustainablemanagement and trade of tropical forestresources. The 2005 report affirms the fact thatMalaysia’s forests are well-managed in its reviewof the status of SFM in producer membercountries, as a follow-up to ITTO’s initial surveycarried out in 1998.

In 1989 a mission from the ITTO visited Malaysia to assess the sustainable utilisation and conservation on tropical forests. Another mission went to Sarawak in 1992 after whichrecommendations were provided by ITTO expertsto further enhance SFM including those pertainingto an annual production of 9.2 million m3 from thePermanent Forest Estates (PFE) of Sarawak. Thisrecommended production of 9.2 million m3 perannum, is not to be confused with the averagetotal figure of around 12 million m3, which includesharvests from stateland. Since the last 10 years,the annual production from Sarawak’s PFE hasdropped below 9 million m3.


International organisations have repeatedlystated the fact that Malaysia’s forests are well-managed, and the ITTO has recognisedMalaysia as foremost amongst the tropicaltimber-producing countries in achieving ITTOYear 2000 Objectives, whereby producercountries are expected to strive to install thenecessary processes to achieve SFM.

According to the ITTO, SFM is defined as:“The process of managing permanent forestland to achieve one or more clearly specifiedobjectives of management with regard to theproduction of a continuous flow of desired forestproducts and services without undue reductionin its inherent values and future productivity andwithout undue undesirable effects on thephysical and social environment”.

Malaysia also continues to be transparent in itsefforts to sustainably manage its forestresources by:1. Improving the investment climate for

plantations as a supplementary source ofwood supply

2. Diversifying wood products markets toreduce commercial risk to the industry

3. Increasing utilisation of lesser-known woodspecies and biomass from perennialagricultural cash crops such as rubber andoil palm.

Malaysia’s forest policies have always emphasizedthe balance between protection and production.Regulations are in place with regard to forestmanagement operations; these specify in detailharvesting guidelines, codes of best practices,forest inventory, silviculture and construction offorest roads. All harvesting and related operationsare carried out by contractors operating on thebasis of licenses and legally-binding agreements.These licences stipulate intensity of extraction,harvesting sequence, tree size limitations,transport routes, standards of road constructionand methods of treatment. In areas underselective logging, there are standards for theprotection of water courses, construction ofbridges and water crossings and theestablishment of stream buffers. Logging is notallowed in sensitive and water-catchment areas.The use of chemicals for the poison girdling oftrees has also long been discontinued. Malaysia’s forest policies have always emphasizedthe balance between protection and production.

Regulations are in place with regard to forestmanagement operations; these specify in detailharvesting guidelines, codes of best practices,forest inventory, silviculture and construction offorest roads. All harvesting and related operationsare carried out by contractors operating on thebasis of licenses and legally-binding agreements.These licences stipulate intensity of extraction,harvesting sequence, tree size limitations,transport routes, standards of road constructionand methods of treatment. In areas underselective logging, there are standards for theprotection of water courses, construction ofbridges and water crossings and theestablishment of stream buffers. Logging is notallowed in sensitive and water-catchment areas.The use of chemicals for the poison girdling oftrees has also long been discontinued.

In regard to post-harvest treatments, guidelinesspecify the need to assess the condition of thecrop after logging, and measures for rehabilitationand enhancement of the crop according to itscondition at the time. The ITTO reportsindependently that by the end of 2003, 2.1 millionhectares of logged-over forests had been treatedsilviculturally, and another 50,000 hectares hadbeen enriched with native species.

Outside the PRF, other protected areas that havebeen gazetted include national parks, wildlife andbird sanctuaries which amount to an estimated1.83 million hectares. In all, the totally protectedforest area of 4.94 million hectares constitutes15.0% of Malaysia’s total land area. Under theaegis of the ITTO, management of wildlifesanctuaries such as the Lanjak-Entimau WildlifeSanctuary and the Pulong Tau National Park in

Sarawak have been given a boost, with additionalco-operation by the management of adjacenttransboundary national parks on the Indonesian(Kalimantan) side. In terms of protected forestareas, over and above the 4.94 million hectaresalready set aside, some 115,000 hectares withinthe PRF have been set aside as Virgin JungleReserves (VJRs) to preserve samples of the fullrange of forest types found within the country.

Malaysia’s SFM practices extend to the protectionof the livelihoods of the indigenous communities.The rights of indigenous communities whodepend on the forest for their livelihood have beenofficially recognised, as have the rights of localpeople regarding the use of forest resources fortheir sustenance. These are recognised by theLand Ordinance 1930 (Sabah), Aboriginal PeoplesAct 1954, Land Code 1958 (Sarawak), NationalLand Code 1965, National Forestry Act 1984 andother related laws.

In a recent paper presented by Mr. MoctarToure, the Team Leader, Land and WaterResources, Global Environment Facility (GEF) of the World Bank, he said: “Malaysia offers a vivid example of a countrythat has developed an effective and soundpolicy and legal framework for themanagement of its tropical forest resources.Key to its success is the statement of a clearvision and political commitment to ensure thecontinuity of forest product flow, whileconserving complex ecosystems, rich andvaried in flora and fauna.”

MALAYSIAN DELEGATES AT MEETING ON ILLEGAL LOGGING IN YOKOHAMA,NOVEMBER 2006.


Malaysia continues to solicit and receivefeedback from global agencies with regard to itsSFM practices, which provides invaluable inputtowards enhancing its best practices. Malaysiaalso recognises the need for continuing dialoguewith the international community in order tofurther strengthen stewardship of its tropicalforest resources and help advance the cause ofSFM. Nevertheless, Malaysia recognises thatSFM is at different stages of development indifferent parts of the world, particularly indeveloping tropical countries, and that regulardialogue and exchange are necessary for betterunderstanding of, and response to, thechanging expectations of the internationalstakeholder community.

VERIFICATION AND CERTIFICATIONThe Malaysian timber industry is comparativelywell-developed and managed. There is a properdocumentation and identification system in placefor forest harvesting. A rigorous tree-taggingsystem is implemented where trees to be felledare systematically identified, measured, taggedand recorded. Under this system, each logproduced from the PRF can be traced to itsforest of origin. It can even be traced to theoriginal stump. Other measures to furtherenhance verifiability for legality of source includemaking the transition towards 100% tagging ofall trees to be felled and retained in harvestingconcessions. Use of Geographical InformationSystem (GIS) and other computer technologyincluding the use of barcode readers furtherimproves the legality of the verification processand allows for systematic tracking of timber fromthe forest under the chain-of-custody system.

These systems of checking and double checking,export licensing, monitoring and control are all inplace. In 1996, Malaysia and The Netherlandsunder a Joint Working Group (JWG) beganexperimental studies in timber certification. A set of criteria and indicators (C&Is) for forestmanagement certification was developed basedon the ITTO criteria and indicators for SFM.These C&Is were used in the pilot study that was implemented under the JWG.

To further enhance the implementation of SFMand to meet the market demand for certifiedtimber products, it was agreed that a nationaltimber certification body should be established.This led to the establishment of the NationalTimber Certification Council (NTCC) Malaysia in1998, which subsequently became the MTCC.Its mission was to develop and implement anational timber certification scheme in Malaysiato ensure SFM and to develop and implementthe standards related to timber certification.

By the end of 2006, eight forest managementunits (FMUs) in Peninsular Malaysia covering4.67 million hectares and one FMU in Sarawakcovering 55,949 hectares had been certifiedunder the MTCC timber certification scheme.Sabah began experimenting with forestmanagement certification in its model forest, the Deramakot Forest Reserve, which obtainedcertification in 1997 against the MalaysianCriteria and Indicators for Forest ManagementCertification (MC&I) and the FSC-accreditedSGS QUALIFOR Programme. The DeramakotForest Reserve was reassessed in 2002 andhad its certificate renewed for a second five-year term expiring in 2008.

OPENING CEREMONY OF THE FIRST MALAYSIAN FOREST DIALOGUE ORGANISED BY HSBC BANK, MTC, MTCC, WWF-MALAYSIA, BCSDM AND MNS,DECEMBER 2006.


With timber certification, there is legality andacceptability that the product comes from asustainably-managed forest. The Malaysiancertification standards are based oninternationally agreed criteria and indicators forSFM. In its effort to further enhance and seekrecognition of its scheme, MTCC continuouslyengages in consultations with other internationalcertification schemes and forestry related bodies.One of the measures being taken is thestreamlining and consolidation of the role andresponsibilities of the key players within theMTCC scheme. A new institutional arrangementis currently being implemented, where MTCC willcontinue to play the role of a National GoverningBody (NGB), while independent assessors willbecome the Certification Bodies (CBs) accreditedto the Department of Standards Malaysia(Standards Malaysia) which is the nationalAccreditation Body (AB) in Malaysia. Under thisarrangement, all certificates under the MTCCscheme will be issued by the accredited CBs.

Under a country case study undertaken byVERIFOR (a project under the UK OverseasDevelopment Institute’s Forest Policy &Environment Programme) published in 2006,Malaysia’s verification and certification processis summarised in these words:“Malaysia’s systems for legal verificationconstitute complex, multi-agency structuresproviding oversight of domestic production andtimber imports. Existing systems straddlemandatory public-sector audits as well asvoluntary third-party certification.”

Standards cannot be developed overnight noragreed overnight. There are many stakeholderswhose views have to be taken into considerationsuch as social and environmental NGOs,government agencies, academic/researchorganisations and timber industry playersworldwide. Sustainability is a journey. Along withits stakeholders, Malaysia as a leading tropicaltimber producing country continues to push theboundaries of international best practice. Malaysiarecognises the need to meet the demands of allstakeholder groups while balancing economicviability, environmental responsibility and socialconditions.

Malaysia is well ahead of other producingcountries in tropical forestry management. The timber industry is an important export earnerfor Malaysia, therefore Malaysia will notcompromise its efforts at tropical forestrymanagement because it would be detrimental to the industry if it did so. Besides certification,Quality Management System audits under theISO 9000 family of standards have also beenapplied to routine timber administration systems.The reality is if Malaysia cannot make certificationwork, it would be difficult for any other tropicaltimber producing country to do so.

ILLEGAL LOGGING IN THE SOUTH EASTASIAN REGIONIn a 2001 country report covering East Malaysiaas well as a companion report covering PenIn a 2001 country report covering East Malaysiaas well as a companion report coveringPeninsular Malaysia by the World Bank andWWF, it is stated that the level of illegal loggingin Malaysia is small (in the order of 1% or less)compared to the legal wood products trade.The study also reported that the averagenumber of forest crimes in Peninsular Malaysiadropped from 223 for the period 1987 - 1993 to about 28 for the period 1994 - 1999.

In Malaysia as elsewhere, it is true that assupplies of domestic timber decline in responseto demand, a growing proportion of exportsconsist of timber originally sourced from a varietyof neighbouring countries including Thailand,Indonesia, Papua New Guinea and Myanmar as well as South Africa, Solomon Islands, USA,New Zealand, Australia and Canada.

The Malaysian government is concerned thattrafficking in timber of doubtful originsendangers her own efforts to eradicate illegallogging within her territories and at the sametime damages the reputation of her timber andtimber products.

Responding to Indonesia’s export ban on roundlogs in October 2001 in order to combat theproblem of illegal logging in that country,Malaysia reciprocated by banning imports ofIndonesia logs on June 25th, 2002. Todemonstrate seriousness in totally curbing

NEWSPAPER CUTTINGS ON MALAYSIA’S BAN ON IMPORTS OF INDONESIA LOGS.


Historically, Malaysia and Indonesia have hadclose trading relations. Barter trade particularly inrice, sugar and other agricultural produce existedfor centuries. Some quantities of low qualitytimber may have been similarly traded although,given the present situation, traders of timberbanned by Malaysia are turned back and refusedpermission to land. Cross-border trade isregulated through two bilateral agreements - theBorder Crossing Agreement and the Border TradeAgreement, 1967. According to these agreementsthe Malaysian government will designate an areaclose to Indonesia for barter trade activities whereall products traded are subject to customs andimport-export procedures. Under the CustomsAct, the site is also specified as a legal landingplace. There are two types of jetties serving aslegal landing places - one approved by theMinistry of Finance, known as a Barter TradeCentre (BTC) and the other approved by the StateGovernment. The BTC is allowed to handle alltypes of goods for import and export whilst theState-approved private jetty is allowed to handleselected products approved by the committeeunder the State Government. From this, it will benoted that border trade between Malaysia andIndonesia is well-regulated. Products brought intothe country must be accompanied by ‘goodmanifest’ from the country of origin. The ‘manifest’is a document that is used by the forwardingagent in Malaysia to prepare the Custom ImportDeclaration form (CD No. 1). All importers arerequired to use the services forwarding agentsregistered with the Customs.

The control of trade in Ramin has been a subjectof interest to environmental NGOs. In 2001,following these concerns, Ramin was placed onCITES Appendix III to ensure protection of the

species as well as instituted an export ban on thetimber. The CITES listing helped to increasetransparency in Ramin trade.

In efforts to enhance transparency with all itsstakeholders, Malaysia initiated in April 2004, a Tri-National Task Force on Trade in Raminbetween Malaysia, Indonesia and Singaporewhich has met twice and has drawn up a draftAction Plan. The Terms of Reference for the TaskForce includes enhancing information, datasharing and monitoring of CITES implementationto help manage illegal trade and to frame long-term cooperative actions. They have also beendesigned to improve the existing mechanisms forrapid exchange of information on interdiction ofinfractions and to encourage law enforcementregarding trade in Ramin. Malaysia has conductedcourses on Ramin identification for the customsofficers of a neighbouring country in an effort tobuild enforcement capacity in line with the TaskForce’s proposed Action Plan.

Further, in October 2004 when Ramin was listedon Appendix II of CITES, Malaysia put in placeand implemented the procedures in January 2005to correspond with the tighter trade control.Additionally, Malaysia under the auspices of theTri-National Task Force on Trade in Ramin, hostedan ITTO experts meeting in May 2006 on theeffective implementation of the CITES decision tolist Ramin on Appendix II.

Malaysia participates in regular symposia tostrengthen bilateral and regional co-operationfor forestry law enforcement. For example:

JUNE 1999Regional Symposium on Forestry Law

Enforcement in Phnom Penh, Cambodia

AUGUST 2000Conference on Illegal Logging in East Asia,Indonesia

NOVEMBER 2003Forest Partnership Meeting in Tokyo, Japan

JANUARY 2004First Informal Meeting of the Malaysia-IndonesiaJoint Committee on Forestry in Jakarta,Indonesia

MARCH 2004Second Informal Meeting of the Malaysia-Indonesia Joint Committee on Forestry in KualaLumpur, Malaysia

NOVEMBER 2005Customs and Forestry Enforcement Workshopin Cebu, the Philippines

NOVEMBER 2005Second Discussion on Indonesia-Malaysia MoU(Cooperation in Combating Illegal Logging andTrade in Timber and Timber Products), inSarawak, Malaysia

MARCH 2006Second Working Meeting of the Asia FLEG TaskForce & Advisory Group in Manila, the Philippines

These efforts notwithstanding, the challengeremains to be transparent, to exchangeinformation to enhance customs policing anddata capture systems, to harmonise customscodes and to strengthen bilateral cooperationbetween Malaysia and Indonesia.

Free Trade Zones (FTZ’s) or Free CommercialZones of Free Zones are areas designated bythe government under the Free Zones Act for

RAMIN SAWNTIMBER SEIZED BY SFC IN LUBOK ANTU, SARAWAK NOVEMBER 2003.


purpose of entrepot trade and manufacturing

industries producing goods essentially forexport. These zones are under special controlby Customs, where activities such as cargotrans-shipment, consolidation, packing, sorting,grading, trading and resale take placeunimpeded. Goods and such services may bebrought into or provided in a free zone withoutpayment of any customs duty, excise duty, salesor service tax. To strengthen enforcement in thefree zones, statutory amendments were madeto the Import Prohibition Order 1998 (CustomsAct 1967) in June 2006. With this amendment,logs and large scantlings and squares (LSS)from Indonesia were emplaced on the FirstSchedule, meaning they are absolutely bannedfrom entry, even into the FTZ’s (although FTZ’sare considered places outside Malaysia). Theamendment also required that logs and LSShaving a cross section exceeding 60 squareinches (from countries other than Indonesia) beaccompanied by import permits issued by boththe Director General of MTIB and a personauthorized by him. This amendment also appliesto the import of Ramin parts and derivatives,which also requires the CITES Import Permit as well as an Import Declaration .

The following tables are indicative of the enforcement activities that are being carried out:

CONFISCATION OF INDONESIAN TIMBER IMPORTS 2004-2006

REGION NO. OF CASES2004 2005 2006

Peninsular Malaysia 49 40 98Sabah 71 42 159Sarawak 12 6 6Total 132 88 265

BREAKDOWN OF CONFISCATION CASES OF INDONESIAN TIMBER IMPORTS IN PENINSULARMALAYSIA IN 2006

PENINSULAR SABAH SARAWAK TOTALRAMIN OTHER RAMIN OTHER RAMIN OTHER

SPECIES SPECIES SPECIES

Total cases 1 97 0 159 0 6 263Compound (RM) 1,500 133,810 0 173,594 0 3,000 311,904Logs (m3) 0 1,358 0 0 0 0 1,358LSS (m3) 9 644 0 994 0 549* 2,196Total volume (m3) 9 2002 0 994 0 549 3,554

* A volume of 193 m3 are LSS sizes, while the rest are baulks


One of the major steps taken by Malaysia toaddress genuine problems of illegal logging isthrough its active involvement in the EuropeanUnion’s Forest Law Enforcement, Governanceand Trade (FLEGT) Action Plan which aims totackle the problem of illegal logging andassociated trade. The Action Plan sets out aprocess and a series of measures throughwhich the EU proposes to address theseproblems. A key component of the FLEGTAction Plan is the conclusion of VoluntaryPartnership Agreements (VPAs) with timberproducing countries.

The proposal for a VPA was first discussedbetween the EU and the Government of Malaysiaat a meeting on 12 May 2004 in Kuala Lumpur.During subsequent meetings, Malaysia hasreiterated its interest in the possibility of a VPAwith the EU. On 25 September 2006, DatukPeter Chin, the Minister of Plantation Industries &Commodities met with the EC Commissioner ofDevelopment, Mr. Louis Michel and Mr. StavrosDimas, the Commissioner of Environment inBrussels. As a result of this high-level meeting, a “Joint Statement on a Voluntary PartnershipAgreement (VPA) on Forest Law Enforcement,Governance and Trade (FLEGT) betweenMalaysia and the European Community (EC)”was issued, in which both sides agreed to startformal negotiations on the FLEGT VoluntaryPartnership Agreement (VPA).

Malaysia was the first country to officially enterinto formal negotiations with the EuropeanCommission. Subsequently, the first formalnegotiations began in January 2007, withdiscussions focussing on a mechanism toindependently verify legal timber under alicensing scheme.

OPENING CEREMONY OF 1ST MALAYSIA-EUROPEAN COMMISSION SENIORSOFFICIALS MEETING FLEGT, 19 JANUARY 2007, MIRI.


MALAYSIA’S STAND ON THE ENVIRONMENT

Malaysia’s efforts to promote sustainabledevelopment has resulted in her being rankednumber 38 among 146 countries worldwide bythe Environmental Sustainability Index Study2005, Yale University. In addition, a follow-up2006 study ranked Malaysia ninth among 133countries in terms of efforts taken to reduceenvironmental stress on human health andprotecting ecosystem vitality.

Malaysia’s environmental stewardship has beenembraced by its government in line with thedeclared principles of Islam Hadhari whichstress continuing balance between developmentneeds and environmental management.

The Malaysian Government in its 9th MalaysiaPlan has allocated a sum of US$0.54 billion ofthe National Budget for the implementation ofenvironmental preservation projects. Malaysiapromotes environmental stewardship tomaintain the balance between developmentneeds and the environment, emphasizing on theplacement of preventive measures to mitigatenegative environmental effects at source,

intensifying conservation efforts and sustainablymanaging natural resources. In addition, thegovernment aims to boost closer cooperationbetween stakeholders in addressingenvironmental concerns.

Malaysia is an active proponent of SFM andplaces great weight on the conservation andsustainable use of forest products, watershedsand water catchments with strong regard for thepromotion of sustainable forest products such asherbal and medicinal products, eco-tourism andbioprospecting activities. A National PhysicalPlanning Council was established in 2003 and aNational Physical Plan (NPP) 2005 - 2010 wasadopted to further enhance integrated land useplanning. The NPP envisages furtherdevelopment of capacity in environmental andnatural resources management, methodology toimprove land use planning and the use ofhyperspectral remote sensing technology. Otherstrategies include monitoring, management andprotection of Environmentally Sensitive Areas(ESA’s) and the use of Strategic EnvironmentAssessment (SEA).


OUR COMMITMENT

COMMITMENT TO SFMGOVERNANCESFM is a serious commitment as evident inMalaysia’s century-old track record in respect to forestry policy and regulation, systems oflicensing, harvesting and forest management,enforcement, monitoring and inspection as wellas continuous improvement. These systemshave been institutionalised and entrenched andlend credibility to Malaysia’s governance over itslegacy of tropical forests. To facilitatecontinuous improvement, developmentallocations under the 9th Malaysia Plan (2006-2010) to forestry departments in the threeregions have been increased. For example, the FDPM has a RM90 million developmentallocation, up from RM44 million under the 8th Plan.

BENCHMARKINGMalaysia continues to benchmark its positionagainst international best practices byparticipating actively and openly in various foraand dialogues eg those spearheaded by UNFF,

FAO, ITTO, CITES, ASEAN Experts’ Groups and other international agencies. Additionally,Malaysia’s forest industry operates to ISO andother technical standards.

REGIONAL & BILATERALCOOPERATION/THOUGHT-LEADERSHIPMalaysia cooperates closely with other tropical-timber producers and trading countries egSingapore and Indonesia as well as withinASEAN. Platforms such as the ASEAN SeniorOfficials on Forestry (ASOF) ensures thatinformation is exchanged and issues raised for discussion and action. Its forestrydepartment and agencies such as the MTC and MTCC have frequent dealings with theircounterparts in the region. In this way, Malaysiachampions SFM practices and demonstrates its thought-leadership initiatives.

PRIME MINISTER DATUK SERI ABDULLAH AHMAD BADAWI AT THEINTERNATIONAL CONFERENCE ON BIODIVERSITY, IN PARIS, 24 JANUARY 2005.SEEN WITH HIM IS MR. JACQUE CHIRAC, THE FRENCH PRESIDENT.


R&DResearch and development continues with astrong commitment from the Ministry of NaturalResources and Environment, under whosepurview lies FRIM. Under the 9th Malaysia Plan(2006-2010), FRIM’s development allocationsalmost doubled to RM70 million, from RM42under the previous Plan. The level ofdevelopment expenditure allocated to FRIM hasbeen growing steadily, from about RM37 millionunder the 7th Plan (1996-2000). Through thiscommitment, Malaysia keeps abreast of SFMchallenges and identifies ways and means tooptimise its forest resources for wealth creation.

CAPACITY BUILDINGMalaysia regularly raises the bar on quality of itsstaff. It also recognises that forestry staff and allindustry personnel need continuing training toupgrade their skills and keep them in touch withglobal developments and stakeholderexpectations. Year upon year, training budgetallocations grow and more quality staff are alsotrained through technical assistance receivedthrough bilateral assistance, as well asmultilateral sources, to deliver better results.

LEADERSHIPMalaysia’s forest management is governed bythe National Forestry Council which is a high-level forum chaired by the Deputy Prime Ministerhimself. It is important to recognize that agoverning body such as this exists to whoseattention current issues and SFM dilemmas canbe raised and presented. Prominent leaders andindustry leaders also participate in various otherMalaysian fora, under the framework of

multilateral groupings, trading blocs and

organisations from time to time to discussissues and to take note of changingrequirements of the marketplace.

OPENNESS &TRANSPARENCYIn line with the national agenda which prizesgood governance, Malaysia upholds a policy ofopenness and transparency and is ever willingto dialogue with stakeholders who wish toascertain the extent of its SFM practices, tomake presentations to stakeholders around theworld as well as to open up its industry tovisitors. From time to time, Malaysia publishesinformation on forest industry developments onits various websites.

BILATERAL MEETING BETWEEN MALAYSIA, THE EC AND THE NETHERLANDS ON EU-MALAYSIA FLEGT VPA, 16 JUNE 2005, KUALA LUMPUR.

MALAYSIA HAS ALWAYS BELIEVED IN COOPERATING WITH HER NEIGHBOURS ONENVIRONMENTAL ISSUES. PRIME MINISTER DATUK SERI ABDULLAH AHMADBADAWI AND INDONESIAN PRESIDENT SUSILO BAMBANG YUDHOYONOCONTINUE TO FORGE CLOSE TIES THROUGH OPEN DISCUSSIONS ON ISSUESOF MUTUAL INTEREST, PARTICULARLY ON FORESTRY AND THE ENVIRONMENT.


ACKNOWLEDGEMENTThis paper represents the collective inputs fromthe following agencies:

• Forestry Department Peninsular Malaysia(FDPM)

• Sabah Forestry Department (Sabah FD)• Sarawak Forest Department (Sarawak FD)• Sarawak Forestry Corporation (SFC)• Malaysian Timber Industry Board (MTIB)• Sarawak Timber Industry Development

Corporation (STIDC)• Malaysian Timber Council (MTC)• Malaysian Timber Certification Council (MTCC)

BIBLIOGRAPHY• Wells, A. (2006). Country Case Study 8

Systems for Verification of Legality in theForest Sector, Malaysia: Domestic TimberProduction and Timber Imports

• Toure, M. Is Forest Management Improving inthe Tropics?

• Balanakura, N. Malaysian Raw Wood ExportBan

• Abdullah, A. L. “The Green Horizon”eBridgeHome.com

• Kunbek. “Standing Tall” eBridgeHome.com,2003

• Kunbek. “A Life in Timber”eBridgeHome.com, 2003

• Prussner, S. “Sound Green Policies BuildSolid Relations” eBridgeHome.com, 2004

• ITTO (2005) Status of Tropical ForestManagement 2005

• Tan, Alan K.J., Preliminary Assessment ofMalaysia’s Environmental Law. Online. 15September 1998.<http://sunsite.nus.edu.sg/apcel/dbase/malaysia/reportma/html>

• America’s Free Trade Pacts Driving IllegalTimber Trade, Destruction of Asian and LatinAmerican Forests. Online. 15 June 2006.<http://www.eisinternational.org/cgi/news/news.cgi?ttemplate&a=312>

• Toure, M. Is Forest Management Improving inthe Tropics?

LIST OF ABBREVIATIONS AND ACRONYMSAB Accreditation BodyBCSDM Business Council for Sustainable

Development MalaysiaBTC Barter Trade CentreC&I Criteria & IndicatorsCB Certification BodyCBD United Nations Convention on

Biological DiversityCD No.1 Customs Import Declaration FormCITES Convention on International Trade in

Endangered Species of Wild Fauna and Flora

CPET Central Point of Expertise on Timber,UK

COC Chain of CustodyDEFRA Department of Environment, Food &

Rural Affairs, UKDFO District Forest Office ESA Environmentally Sensitive AreaEU FLEGT European Union Action Plan on

Forest Law Enforcement,Governance and Trade

FAO Food and Agriculture Organizationof the United Nations

FDPM Forestry Department PeninsularMalaysia

FMP Forest Management PlanFMU Forest Management UnitFSC Forest Stewardship CouncilFTZ Free Trade ZoneGDP Gross Domestic ProductGIS Geographic Information SystemGTZ German Agency for Technical

CooperationHCVF High Conservation Value ForestHS Harmonised Standards ITTA International Tropical Timber

AgreementITTO International Tropical Timber

Organisation JWG Joint Working GroupLSS Large Scantlings and SquaresMC&I Malaysian Criteria & Indicators for

Sustainable Forest ManagementMNS Malaysian Nature SocietyMTC Malaysian Timber Council

MTCC Malaysian Timber CertificationCouncil

MTIB Malaysian Timber Industry BoardNFC National Forestry CouncilNFP National Forestry PolicyNGB National Governing BodyNLC National Land CouncilNPP National Physical PlanNSC National Steering CommitteeNTCC National Timber Certification CouncilPEFC Programme for the Endorsement of

Forest Certification Schemes(formerly Pan-European ForestCertification)

PFE Permanent Forest EstatesPRF Permanent Reserved ForestPUSAKA Perbadanan Perusahaaan Kemajuan

Kayu Sarawak (the STIDC)Sabah FD Sabah Forestry DepartmentSarawak FC Sarawak Forestry Corporation Sarawak FD Sarawak Forest Department SEA Strategic Environment AssessmentSFM Sustainable Forest ManagementSFMLA Sustainable Forest Management

License Agreement StandardsMalaysia Department of StandardsMalaysia

STIDC Sarawak Timber IndustryDevelopment Corporation

TREATI Trans-Regional EU-ASEAN TradeInitiative

TTAP EU Timber Trade Action PlanUNCED United Nat Conference on

Environment and Development UNFCCC United Nations Framework

Convention on Climate Change VJR Virgin Jungle Reserve VPA Voluntary Partnership AgreementWWF-M World Wide Fund for Nature,

Malaysia

HHEEAADD OOFFFFIICCEE18TH FLOOR, MENARA PGRM NO.8, JALAN PUDU ULU, CHERAS 56100 KUALA LUMPUR MALAYSIAEMAIL [email protected] +60 3 9281 1999FAX +60 3 9282 8999

LLOONNDDOONN24, OLD QUEEN STREET LONDON, SW1H9HP UNITED KINGDOMEMAIL [email protected] +44 207 222 8188 FAX +44 207 222 8884

SSHHAANNGGHHAAII8C, JINMING BUILDING NO.8, SOUTH ZUNYI ROAD CHANGNING DISTRICT 200336 SHANGHAIP.R.CHINAEMAIL [email protected] +86 21 6219 7208FAX +86 21 6275 4060

DDUUBBAAIISUITE 104, 1ST FLOOR AL MOOSA TOWER II P.O.BOX 62476, DUBAI UNITED ARAB EMIRATESEMAIL [email protected] +971 4 3326 998FAX +971 4 3326 889

WEBSITE www.mtc.com.my

malaysia: sustainable forest...

Documents