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SAPULUT FOREST DEVELOPMENT SDN BHD

PUBLIC SUMMARY OF

FOREST MANAGEMENT PLAN

1st JANUARY 2016 - 31st DECEMBER 2025

Sapulut Forest Development Sdn Bhd (57757-K) Lot 2-2, 2nd Floor, Wisma Manikar, Lorong Manikar 1 Off Mile 2.5, Jalan Tuaran Likas 88400 Kota Kinabalu, Sabah, Malaysia Tel: +6088 – 276 828 - 33, Fax: +6088 – 276 668 Website: mysapulutfmu14.blogspot.com

Public Summary of Forest Management Plan Sapulut Forest Development Sdn Bhd

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Information of Licensed Area

Company : Sapulut Forest Development Sdn Bhd (SFDSB)

Forest Management Unit : 14

Size of Area : 76,613 ha

Location : Part of Sapulut Forest Reserve (Class II)

Jurisdiction : Tibow Forestry Department, Keningau

Co-ordinates : Latitudes : 4o 32.5’ and 4o 49 North

Longitudes : 116o 27’ and 116o 54’ East

Agreement : Sustainable Forest Management License Agreement No. 04/97

(SFMLA 04/97)

Contact Person : Mr. Norman Wong (Managing Director)

Email : [email protected]

General Locality Map of FMU 14


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Chapter 1 - Introduction

General Background

In the past, repeated and bad logging practice within the Sapulut Forest Reserve (FR) made the

forest poor in timber productivity, standing timber stock also regeneration. This was the condition

of the Licensed Area before it was handed over to SFDSB in 1997, to be managed based on

Sustainable Forest Management (SFM) principles. SFDSB signed the Sustainable Forest Management

Licensed Agreement 04/97 (SFMLA 04/97) in September, 1997 with the State Government of Sabah,

for a total area of 95,300 ha.

i. 1st FMP (1st January 2004 - 31st December 2013)

The SFMLA 04/97 or Licensed Area of 95,300 ha, was managed by SFDSB based on the 1st

FMP. It was first approved on 2nd December 2003. Later, it was revised and approved on 20th

December 2004.

ii. 2nd FMP (1st January 2014 - 31st December 2023) - approved on 16th December 2016

Based on the First Supplemental of SFMLA which was signed on 21st February 2014,

approximately 7,644 ha of the Licensed Area were excised and converted into a Class 1

Protection Forest Reserve which is now known as Maliau Buffer Zone Forest Reserve. The

excised area has been placed under the Maliau Basin Management Committee (MBMC) which

includes SFDSB as a new member of the Committee. The 2nd FMP was prepared to replace the

1st FMP with the total remaining Licensed Area of 87,656 ha.

iii. 3rd FMP (1st January 2016 - 31st December 2025) - approved on 17th March 2017

Subsequently, a second supplementary agreement was signed on 3rd November 2015, when

approximately 11,043 ha of the Licensed Area was excised for the purpose of socio economic

development of the State. The new 3rd FMP is necessary to incorporate changes in land use of

the Licensed Area and update the prescribed activities for the management. It is prepared

under the guidance of the Sabah Forestry Department (SFD). The remaining Licensed Area in

the 3rd FMP is now 76,613 ha.

Summary of net Licensed Area before and after the excision

Forest

Management Plan

(FMP)

Total Excised

Area (ha)

Total Licensed

Area (ha)

Remarks

First - 95,300 Before Act of the State Legislative Assembly

on 29th March 2012.

Second 7,644 87,656 Turned the excised area into a Class 1

Protection Forest Reserve following the First

Supplement of SFMLA 04/97 on 21st February

2014.

Third 11,043 76,613 The excised area was made to pave the way

for socio economic development on 3rd

November 2015 based on the Second

Supplemental Agreement.


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The 3rd FMP has a number of significant changes, some of which include the following:

Excision of 11,043 ha from ITP compartments to pave the way for the socio economic

development of the State, in addition to 7,644 ha that was excised in the 2nd FMP for the

establishment of Maliau Buffer Zone Forest Reserve (Class 1).

Subscribe to Reduced Impact Logging (RIL), log-fisher and adoption of yarder system as our

harvesting technique in the Natural Forest Management (NFM) and Industrial Tree Plantation

(ITP) areas.

Implement pre and post-harvest forest inventory in NFM and ITP areas.

Adoption of Buffer Alternate Strip Line (BASIL) planting system in the entire ITP areas, gradually.

Adoption of area-specific flexible cutting regimes for harvesting and 25-year intervals bicyclic

felling after initial cut in NFM areas without jeopardizing sustainability of the forest in the long

term.

Update information on Social Impact Assessment.

Improvement of management practices and widening the scope towards acquiring forest

certification.

Activities that are not compatible with the objectives of SFM were discontinued and aborted.

Policy Statements and Management Objectives

As a licensee, SFDSB is committed to manage the Licensed Area in accordance with the terms and

conditions as stipulated in the SFMLA 04/97 and conform with the principles of sustainable forest

management as prescribed by the Forest Stewardship Council (FSC) and the Malaysian Criteria and

Indicators (MC&I) of the Malaysian Timber Certification Council (MTCC) and all existing State forest

policies, environmental policies, legislation and regulations, as follows:

Ensure sustainable management of the forest resources over the long-term in order to provide

optimal benefit and financial return for the Company, as well as, the Socio-economic benefits to

the state

Recognize that environmental protection is given due consideration in all the company’s

business operations so as to minimize any negative impact on the natural environment

Ensure the SFM commitment is integrated with other key business objectives of financial

performance, operating efficiency, customer satisfaction, health and safety and good corporate

citizenship

Ensure that our business partners, contractors and employees are committed to the Company’s

SFM Policy


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Work in partnership with other business organizations, the Government and interested groups

where opportunities exist to benefit both our business and the environment

Protecting the Licensed Area from illegal activities, such as encroachment, hunting, felling and

fires, to enhance the safe, sound and responsible management of the forest for future

generations

Overall objective - to ensure the perpetuity of the Licensed Area as a plantation and natural

resource, which is managed to balance a variety of uses and values in an ecologically sustainable

manner.


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Specific objectives -

For over 10-years planning:

a) Application of Environmentally-Friendly practice

b) Active intervention management of enrichment planting and silvicultural treatment,

monitoring, prevention and suppression of destructive forest agents

c) Establishment of Industrial Tree Plantation (ITP) in highly degraded area

d) Enhance and restore the ecological connectivity

e) Provide employment opportunities to the local communities

f) Support the State Government policy to manage the forest reserve based on SFM principles

as well as the Sabah Tourism Policy to enable tourism to be developed

g) It is envisaged that the Licensed Area will be certified by 31st December 2017

For NFM areas:

a) To manage the NFM area as “growing stock” and harvesting using RIL methods

b) To practice regulated harvesting as per SFD approved management regimes (see page 12) for

sustainability of the forest

c) Subject to statutory requirements and prescribed restrictions, to adopt a 25 years economic

cut (harvest cycle) for the entire NFM areas

d) To concurrently undertake pre-harvest activities, harvesting and post-harvest activities to

take advantage of existing roads and to maintain the operational flow of such activities for

greater efficiency

e) To undertake post-harvest inventory survey after RIL harvest to estimate the quantity of

growing stock available for the next harvest cycle and to determine whether there is sufficient

natural regeneration for future harvest cycles

f) To undertake one round of silvicultural treatment in the form of climber cutting after NFM

harvesting

This summary only covers the NFM area whereas the ITP area will be covered in a separated public

summary.

Chapter 2 - General Information

Meteorology

Rainfall - The Licensed Area is located in one of the wettest parts of Sabah with an average annual

rainfall of 3,000 mm and a very broad variation, from a minimum of 13.7 mm in January 2006 to a

maximum of 1959 mm in August 2010.

Temperature - The temperature at the Licensed Area is between 25oC and 30oC in day time and 18oC

and 20oC at night.


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Relative Humidity - The average annual relative humidity at the Licensed Area ranges from 66.3% to

72.0%.

Wind - The wind is predominantly southerly and the speed ranges from a low of 0.3 m/sec to a high

of 3.4 m/sec.

Sunshine and Solar Radiation - On the average, Sabah receives about 6 hours of sunshine per day.

Solar radiation is closely related to the sunshine duration. Its seasonal and spatial variations are thus

very much the same as in the case of sunshine.

Evaporation - The air temperature at the Licensed Area is lower with an evaporation rate of about

2.5 mm/day.

Geology and Soil

Geology - The Licensed Area is formed of mainly the Sapulut, Tanjong and Labang Formations. A

small area to the southeast corner of the Licensed Area is derived from Kapilit Formation.

Geology Formation

Formation Parent Material

Sapulut Sandstone, siltstone, mudstone, conglomerate and limestone.

Tanjong Sandstone, siltstone, mudstone, conglomerate, minor limestone and lignite.

Labang Sandstone, siltstone, mudstone and limestone.

Kapilit Sandstone and mudstone with rare beds of coal, conglomerate and limestone.

Soil - The main soil associations found in the Licensed Area are Lokan (43%), Crocker (35%) and

Maliau (16%). Pockets of Labau, Kalabakan, Serudong and Gomantong associations are also found.

These associations are generally associated with the geological land form of the area.

Topography

The topography of the Licensed Area is undulating with ground elevations between 200 to 1,200 m

above mean sea level (AMSL).

Hydrology

The FMU 14 natural landscape varies from low hills and undulating terrain in the lowland to steep

and dissected in upland and montane region. Tributaries that could be affected include Sansiang,


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Saburan, Siliawan, Tibow, Palagan, Sabunutan, Beliar, Lambunaan and Sablangan. All these

tributaries join Sapulut River and finally reach Kalimantan. A tributary of Pinangah River originating

from the northern part of the FMU flows to the Kinabatangan River. The largest minor catchment is

Sansiang River, followed by Saburan and Salung rivers.

Current Vegetation Cover

Generally it can be categorized into two classes, the old growth forest with various disturbance

stages and secondary growth vegetation. The vegetation are very much affected by previous

conventional logging activities before the introduction of sustainable forest management.


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Forest Ecosystems

The FMU area comprises mixed dipterocarp forest, mixed dipterocarp and kerangas forest, kerangas

forest, lower montane forest and secondary vegetation.

Flora and Fauna Diversity

Flora - Ten most speciose plant families within Sapulut FR are Dipterocarpaceae, Euphorbiaceae,

Lauraceae, Annonaceae, Fabaceae, Orchidaceae, Rubiaceae, Phyllanthaceae, Meliaceae and

Myrtaceae. During the recent High Conservation Value (HCV) survey, data retrieved from plant

database (BRAHMS) and other research plots, a total of 442 taxa (identified to specific and

infraspecific level) were recorded from Sapulut FR, where 112 plant species are endemic to Borneo,

including 23 to Sabah but none is endemic to Sapulut FR.

Fauna - Sapulut FR has a diverse and abundant wildlife population. However, logging activities in the

past may have affected and altered its natural habitat to a certain extent. The situation in the

Licensed Area is no exception. A wildlife survey was carried out by HUTAN-Kinabatangan Orang-utan

Conservation Programme (HUTAN-KOCP) in December 2011 and recorded 10 mammal and 57 bird

species. The data procured from the survey served as the baseline information for further wildlife

research and monitoring in the future. Several totally protected species are known to exist within

the Sapulut FR including the Borneon Pygmy Elephant, Borneon Orang-Utan, Tembadau, Malayan

Sun Bear and Sumatran Rhinoceros, in view of close proximity to Maliau Basin Conservation Area

and Kalabakan Forest Reserve. Based on the report from Sabah Wildlife Department, it is very likely

that many animal species move between these forest reserves and share similar wildlife species.

Current Infrastructure

Existing infrastructure within the FMU area includes roads, buildings (Base Camp and Forestry

Complex) and other facilities consisting of 8 detached Rubber Tapper quarters (Rubber Village) and

two fire towers. The base camp is where the administrative building and basic infrastructure

facilities are located. The Forestry Complex is a new infrastructure facility to provide a good working

environment in the Licensed Area, constructed in 2010 but not yet complete. As of 2013, facilities

available in the Forestry Complex are an office with conference room, 1 clubhouse equipped with

clinic, guest rooms, gymnasium and lounge, and living quarters.

Social Impact Assessment (SIA)

SIA is an important and the most commonly used social assessment tool to determine the presence,

status, influence and possible impact of SFDSB operations on the local community. Two SIA studies

were conducted by Kiwiheng Wood and Environmental Consultant Sdn Bhd in 2010 and SFDSB staff

in 2015.


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Sapulut FR area is located in the district of Nabawan/Pensiangan where the Murut Tagol ethnic

group represents the majority of the Bumiputera group and they focus on agro-based activity.


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There are no villages or human settlements within the FMU 14 area. Major human settlements are

located mainly east and southeast of FMU 14, within the state land along Sg Sapulut, Sg Pampangon

and Sg Logongon, namely Kg Bangau, Kg Salarom Taka, Kg Samuran, Kg Sinsingon, Kg Manduluh, Kg

Nalasaran, Kg Kaingalan, Kg Salangon, Kg Pulutan, Kg Saliku, Kg Sabulu, Kg Agis, Kg Tikandis, Kg Bulait,

Kg Balantos, Kg Sinikalaun, Kg Sosogoh, Kg Kuyoh, Kg Sikait, Kg Sabinait and Kg Sumolombom. In the

eastern area of FMU 14, human settlement is limited to Jabatan Perhutanan Tibow which is

provided with main office and staff quarters.

In the immediate surrounding of SFDSB licensed area, are Bornion Timber Sdn Bhd and Indah

Serimas Sdn Bhd to the north, Maliau Basin Conservation Area to the northeast, Expo Utama Sdn

Bhd to the southeast, Top Quantum Sdn Bhd and Zillion Fortune Sdn Bhd to the south; and Idris

Hydraulic Sdn Bhd and Jawala Plantation Industries Sdn Bhd to the southwest.

There are tourism attractions located within and in the vicinity of the FMU 14 area including Batu

Saap, Batu Punggul and Batu Tinahas. These are gazetted as archaeological sites except for Batu

Saap which is located within the FMU 14 area.

Population and Demographics

The majority of the population is Bumiputera of the Murut community. Their education level is

typical for a rural area where 49% of the population have attained secondary education and mainly

work in agriculture as farmers. The population economic level is considered low with the majority

having incomes of less than RM 500 per month.

The majority of the population relies on water pipe system for drinking purposes while others

collect rain water and rely on river water. However, during dry periods, they obtain water directly

from local rivers for daily water use.

Though electricity connection has improved in the last ten years, more than half of the respondents

(55%) have no proper electricity.

Telephone connections are getting better with 44% of the respondents receiving good service.

Main roads within the study area are the existing logging roads. The primary mode of transportation

is by private (illegal) van, 4WD vehicle and private taxis. Car ownership is very low. All roads within

the settlements are in need of maintenance.

Existing Socio-Economic Problems


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Problems reported are lack of employment opportunities, development, land allocation to them for

the whole communities and future generations, and infrastructure such as electricity and water

supply.


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Public Perception and Acceptance of the Proposed Project

The majority of the respondents agreed with the existing SFDSB’s operation. Those who agreed

stated that the project may (i) create more employment opportunities; (ii) improve social facilities

and economy of the surrounding areas and (iii) provide a good network of roads. Other positive

impacts were improve the infrastructure facilities, population health, image of the area and quality

of life environment.

Those who disagreed to the project are mainly concerned about the river water pollution. Some of

those who disagreed imposed reasonable conditions mainly related to the requirements of clean

water supply, either in the form of water storage facility or protection of water catchment areas.

Others highlighted an increase in road traffic, dust and safety among other road users and

immigration of foreign labour that might cause social problems.

Map of Adjacent Villages to Licensed Area


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Management Implication of the SFMLA

The aspect of the local population indeed provides several management implications for the SFMLA.

Issues that need to be dealt with are:

a) Encroached Area - Three areas have been identified and inspected as being encroached by the

local farming communities. SFDSB will resolve this case according to the present rules and

regulations with the guidance and assistance of the SFD.

b) Hunting and Other Illegal NTFP Extraction - Hunting and other illegal NTFP extraction (such as

medicinal plants, gaharu, rafflesia, orchid, jungle fruits, handicraft plants and other) are difficult

to control due to close proximity to Sapulut-Kalabakan main road that cuts across Sapulut FR

and an open area along the eastern bank of Sg Sapulut. SFDSB provides appropriate CSRs as

before to maintain a good relationship with the local communities and carries out activities

such as awareness education; conducts monitoring and enforcement; and has placed

appropriate and adequate permanent signboards on all strategic places along the Sapulut -

Kalabakan main road and Sg Sapulut.

c) Village Watershed Area - SFDSB will cooperate with and assist the local communities in

providing clean gravity water supply if requested and depending on the availability of funds.

The watershed area will be mapped within the SFDSB master map and excluded of any timber

harvesting activities including RIL technique.

d) Organic Hill Rice Farming - Introduction of a new system of organic hill rice farming, SRI system,

would provide the local communities with more fertile rice clumps and higher rice yield. The SRI

system is environmentally friendly, low cost, results in higher yields and allows for permanent

cultivation on one farm area. It is hoped that it will reduce the need to open up new lands for

shifting cultivation and will not encroach into Sapulut FR anymore in the future.

e) Establishment of Sapulut FR Social Forestry (SF) Committee - The purpose of the committee is

to provide a communication bridge between the SFDSB management and the local

communities. It was suggested that three groups of SF Committee be established namely Sg

Sansiang & Sg Sansiang Cluster, Sapulut Town Cluster and Sg Sapulut Cluster.

Chapter 3 - Past Management Reviews

Land Use

The purpose of a forest management plan is to prescribe measures to optimize production,

utilization, and regeneration of forest resources. The plan includes description of how the listed land

will be managed and treatment schedules such as timber harvesting and reforestation.


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The 1st FMP was formulated to rehabilitate the degraded forests within the NFM areas, establish ITP

in degraded areas, protect the Licensed Area from illegal logging, poaching, forest fires and further

encroachments by the local communities and to promote social development activities.

The 2nd FMP was formulated to ensure the perpetuity of the Licensed Area as forest plantation and

natural resources, introduction of BASIL (Buffer Alternate Strip Line) planting in the highly degraded

area within ITP area, restore ecological connectivity and enhance potential support (habitat) of

viable wildlife populations, biodiversity conservation and associated ecosystem services.

Comparison of the 1st FMP and 2nd FMP

1st FMP 2nd FMP

Land Use planning 3 main land uses:

i. Conservation

ii. Production (NFM)

iii. Production (ITP)

3 main land uses:

i. Conservation

ii. Production (NFM)

a. NFM Conventional

b. NFM Mosaic planting with RIL

iii. Production (ITP)

a. ITP conventional

b. ITP with RIL

c. BASIL

Silviculture Treatment

(Climber cutting)

Applied within NFM area only, in the

form of climber cutting, based on the

guidelines of Silvicultural Tending

procedures for Logged Over

Dipterocarps Forest by Sabah Forestry

Department.

Confined in the NFM Mosaic

Planting areas.

ITP with RIL and BASIL (in the form

of bamboo and climber cutting).

Infrastructures

Various physical infrastructures were built, maintained and repaired by SFDSB during the last 10

years including base camp, forestry complex, nursery, fire lookout tower, and road and parameter

boundary.

Forestry Complex Area


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Community Programme

SFDSB has actively engaged with the local community living adjacent to the Licensed Area by

providing direct employment and conducting various community programmes such as training, free

rubber seedlings, promoting local handicrafts, offering scholarships and conducting dialogues. The

programme has a direct impact on the economic well-being of the local communities.

Office with Conference Room Clubhouse

Albizia Cabin 1 Albizia Cabin 2

Carpenter Quarters Ranger Quarters


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Approximately, 40% of the SFDSB’s staff and workers are villagers living in the vicinity of the

Licensed Area.


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Logging in NFM Areas

In the early stage of operation, from 2005 to 2006, approximately 6,986.5 ha of the NFM areas were

logged and yielded about 66,611 m3 of timber. It was Non-RIL conventional logging in the NFM areas

which was not planned in the 1st FMP. For 2nd FMP, harvesting is scheduled to commence in 2016.

Non-RIL logging in NFM Compartments

Year Coupe Compartment Gross Area (ha) Volume (m3)

2005 TWU.18/03 NFM Coupe B 1,010.24 15,486.02

TWU. 06/04 NFM Coupe C 2,483.03 45,472.60

2006 TWU. 18/03 NFM Coupe B 1,010.24 5,276.36

TWU. 06/04 NFM Coupe C 2,483.03 375.99

Total 6,986.54 66,610.97

Chapter 4 - Timber Resources

The Licensed Area in the 3rd FMP has been zoned into 3 main land uses:

Forest Land use Gross Area (ha) No. of Compartments Percentage

Conservation 2,091 7 2.73

ITP 21,970 55 28.68

NFM 52,552 169 68.59

Grand Total 76,613 231 100.00

The last field inventory of timber resources within the Licensed Area was conducted during the

preparation of the 2nd FMP. Comprehensive Harvesting Plan (CHP) results will guide the actual forest

stocking for each compartment.

Two forest management practices, covering compartments designated for Mosaic Forest

Restoration and NFM with the minimum cutting limits at ≥ 40 cm and ≥ 60 cm DBH, respectively,

with the implementation of full RIL, are used for timber harvesting and yield estimations for forest

cover within the management area.

Regenerative Stocks - Stand Density and Basal Area

The overall regenerative stocks from seedlings to pole sized trees according to species groupings

and forest strata summarized that the stocks under forest stratum 3 (Poor Forest) and 4 (Very Poor

Forest) were poorer than forested areas classified under stratum 2 forest cover (Moderate Forest),

with the residual stand densities representing about 40% to 25% of the potential stem density


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compared to Class 1 forest cover. However, it does not reflect the patchy development of trees

between 05 - 20 cm dbh class within the management area.

Yield Regulation and Long Term Sustainability

Management has set a higher standard of minimum cutting limit for harvesting in NFM area at 48

cm DBH, to allow the residual trees grow to ≥ 60 cm DBH in a shorter period for the next harvest

cycle.

For the purpose of yield regulation, a 25 year cutting cycle is adopted for this 3rd FMP, based on

area control of 2,102 ha year-1 with the Annual Allowable Cut (AAC) of 95,644 m3 year-1. Due to

operational limitation of harvesting, a forest stand is considered stocked when at least 15

commercial trees per hectare of between ≥ 60 to < 120 cm DBH are available for harvesting. The

Mean Annual Increment (MAI) of volume at 1.82 m³ ha-1 year-1 which is derived based on data from

years 2012, 2013 and 2015 measurement of ten (10) PSPs.

Chapter 5 - Management Prescriptions

Forest Function Zoning

The Licensed Area will be managed for timber production from NFM and forest plantation of ITP.

There are 231 compartments ranging in size from 67 to 662 ha for the purpose of the management

planning while the main management zone is divided into conservation and production zones, as

shown below:

FOREST LAND USE Total Compartments Gross Area (Ha)

Conservation 7 2,091

Production

NFM 169 52,552

NFM West 25 7,957

NFM East 25 9,905

NFM Central 119 34,690

ITP 55 21,970

Total 231 76,613

There are areas that have been set aside for various uses such as Base Camp and Housing, Rubber

Village and staff quarters, fire towers, nurseries, roads etc. Rubber Village was established to create

a village environment where the main activities are concentrated for rubber plantation related

activities.


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Forest Function Map

Conservation Areas

The conservation areas of 2,091 ha are generally at high altitudes with slope gradients above 25o,

watershed areas and some HCV forests. These areas are off-limits to harvest for ecological purposes.

Other conservation areas, such as the riparian reserves and slope >25o which are scattered all over

the Licensed Area will be mapped out at the operational planning level in the Annual Work Plan

(AWP).

Production Areas

About 97% of the Licensed Area is designated for production zone with the principal objective being

sustainable timber yield. The production zone is divided into two main land uses: NFM and ITP.

NFM Area

The NFM area comprising 169 compartments is approximately 52,552 ha or 60% of the total

Licensed Area. The NFM area is further divided into 3 management regimes as shown below:


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Zone Management Regime Cutting Limit

NFM West NFM-RIL ≥ 48 cm DBH

NFM East NFM Mosaic Planting under RIL ≥ 48 cm DBH

NFM Central NFM-RIL ≥ 60 cm DBH

Timber Harvesting

Timber harvesting will be based on an area control yield regulation and the AAC of 95,644 m3 for the

next cutting cycle. Harvesting in all NFM areas will strictly follow the allowable minimum DBH

cutting limit with full RIL, including the application of log-fisher and tractor techniques, and subject

to the prior approval of CHP.

Timber Stand Improvement (TSI)

The objective of TSI is to improve quality and stimulate the growth of the remaining tree stands.

Treatments may include mainly vine-climber cutting, liberation thinning and enrichment planting.

Approximately 13,914 ha of forest in NFM areas had been silviculturally treated from 2005 up to

2015. For this 3rd FMP, vine and climber cutting will continue to be carried out only in NFM East,

while for NFM West and Central, the cutting will be carried out if and when necessary, subject to

post harvest Silvicultural & Management Inventory Procedures (SMI) findings and availability of

funding. For accessibility, the treatments will be carried out after the restoration plantings are

completed. Guidelines and field procedures for Silvicultural Diagnostic Survey developed by SFD will

be used for the assessment of TSI. The location and size of area to be treated will only be identified

after the diagnostic survey.

Establishment of Permanent Sample Plots (PSP)

The establishment of PSP commenced in 2014 and 10 PSPs have been established in the NFM area.

The measurement is carried out every 2 years. More PSP will be established if and when necessary.

It is envisaged that “BOLEH Monitoring System” may be adopted.


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Chapter 6 - High Conservation Value Forests

The assessment of High Conservation Value (HCV) in FMU 14 follows the national standards as

prescribed in the High Conservation Value Forest Toolkit for Malaysia in 2009. The findings are

based on full HCVF assessment (HCVs in FMU 14 of Sapulut Forest Development Sdn Bhd) which was

carried out by an expert from University Malaysia Sabah.

The HCVs assessment findings that all HCVs are present in FMU 14. These include, HCV 1.1 – 1.3

(Species Diversity), HCV 2 (Large landscape-level Ecosystems and Mosaics), HCV 3(Ecosystem and

Habitats), HCV 4.1 and 4.2 (Ecosystem Services), HCV 5 (Community Needs), and HCV 6 (Cultural

Values). The impacts of forestry activities and surrounding land-use changes are critically evaluated

and form the basis for development of management prescriptions. For retaining the functionality of

these HCVs, the recommended prescriptions, amongst other, are establishment for buffer zones and

demarcation of the area surrounding the HCV, protection from the potential threats, monitoring,

patrolling, etc., and underline the crucial needs for managing the whole FMU at the landscape level.

Figure E.1 Map showing the localities of all HCVs


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HCV in FMU 14 area: Management and Monitoring for the HCVs

HCV Element Threats Management Recommendation

Monitoring Recommendations

1 Species Diversity

Protected area

Encroachment Fire

Forestry activities

Demarcate a 50-m wide buffer adjacent to all protected areas within the NFM zone.

Demarcate a 100-m wide buffer adjacent to all protected areas within the ITP zone

Regular ground monitoring of the buffer zones

Spatial and temporal concentration of species

RTE Flora

RTE Fauna

Encroachment Fire

Forestry activities

Encroachment Fire Illegal harvesting Forestry activities Invasive plant species

Encroachment Fire Hunting Road kills

Forestry activities

Demarcate a 100-m buffer zone around each of these area

Identified and retain Hornbill nest trees and areas with high densities of strangler figs and ensure an appropriate buffer is delineated

Demarcate a 100-m wide buffer around areas with high concentrations of RTE flora - Batu Tantaliwau (Compartment 229), Batu Saap (Compartment 197B), Kerangas 1 (Compartment 189), Sungai Tibow (Compartment 140), Salt lick (Compartment 218) & Kerangas 2 (Compartment 146) Demarcate a 100-m wide buffer around Rafflesia populations (e.g. ITP compartment 192 & 218A) Clearly marked on the ground and excluded from harvesting all prohibited tree species in NFM areas Conduct pre-harvesting assessment on RTE species and adaptive management to ensure a viable population of RTEs is retained after harvesting (i.e. lowering of the maximum cutting diameter to ensure at least 2 seed trees/ha are retained) Conduct further surveys within the Lower Montane areas of FMU 14 to identify area with high concentrations of RTE flora.

Regular ground monitoring of the buffer zones Ground monitor the boundary of these areas to ensure no encroachment Record presence of invasive plant species within these HCVAs Monitor population of Rafflesia within these designated HCV areas Monitor compliance with RIL guidelines Monitoring of populations of RTE timber species via CHP inventories, PSP and post harvesting inventories Establish and monitor seedling plots to assess regeneration of RTE timber species


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Install signage at the major entry points to FMU 14 that indicates the applicable punishments and fines for illegal hunting Develop a SMART-based enforcement plan; patrolling carried out frequently as specified in the plan; Remove all dogs from within the FMU Conduct community outreach programs to increase awareness on conservation and the need to conserve RTE species Retention of nest trees utilized by hornbills; Enrichment plant of figs in the riparian buffer and steep areas within the ITP area Retain woody climbers within riparian buffers and steep areas

Patrolling carried out frequently and as specified in the SMART plan Monitoring of RTE species sensitive to forestry activities using distance sampling and potentially camera traps. Initiate a road kill monitoring program

HCV Element Threats Management Recommendation

Monitoring Recommendations

2 Level Ecosystems and Mosaics

Encroachment Fire Infrastructure development Forestry activities

Retention of riparian buffers as HCVAs and adoption of low impact forestry practices i.e. RIL and BASIL to maintain connectivity

Consult with relevant stakeholders and experts about mitigating the impacts of proposed infrastructure development

Drone-based monitoring to assess changes in forest condition/health.

Ground monitoring of the buffer zones

3 Ecosystems and Habitats

Encroachment Fire Forestry activities

Demarcate the extent of the lowland MDF on Labau soils and rehabilitate areas which are degraded

Demarcate the areas with lowland Kerangas forest and Limestone vegetation

Ground monitoring of these HCVAs Drone-based monitoring to assess changes in forest condition/health.

Monitor stand dynamics in restored areas.


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4.1 Ecosystem Services

Watershed protection

Encroachment Fire

Forestry activities

Demarcate the entire catchment.

Rehabilitate areas which are degraded in conjunction with the relevant local communities

Ground monitoring of these HCVAs

Drone-based monitoring to assess changes in forest condition/health Monitor stand dynamics in restored areas.

4.2 Erosion control Encroachment Fire Forestry activities

Demarcate all areas greater than >25° and cover an area of more than 2 ha Demarcate all riparian buffers.

Rehabilitate areas which are heavily degraded

Monitor the boundary of these areas to ensure no encroachment Monitoring of riparian forest quality using the QBR Sabah rapid assessment protocol.


5 Basic needs of local communities

Encroachment Fire Forestry activities

Demarcate the entire catchment.

Rehabilitate areas which are degraded

Ground monitoring of these HCVAs Drone-based monitoring to assess changes in forest condition / health.


6 Cultural identities of local communities

Encroachment Forestry activities

Demarcate the burial ground and a 50-m buffer

Ground monitoring to ensure no encroachment of this HCV


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Chapter 7 - Environmental Impact Assessment and Management Standard

Environmental Impact Assessment (EIA)

EIA is required under the Environmental Protection (Prescribed Activities) (Amendment) Order 2013

for any forest management activities, especially logging and plantation activities within an area in

excess of 500 ha.

A Special EIA was undertaken for this SFMLA FMU titled “Forest Logging and Plantation of 95,300

Hectares within Forest Management Unit (FMU 14), Sapulut, Sabah” by Sinoh Environmental Sdn

Bhd and approved by Environmental Protection Department (EPD) on 16 June 2005.

All assessment on environmental issues, the impacts and appropriate mitigation measures to

minimize environmental damage are discussed in the report.

Mitigation Measures

Key and commonly applied mitigating measures identified from the assessment are as follows:

No Main Topic Mitigation Measures

1. Soil Erosion Protection of Steep Areas

Reducing land area disturbance

Minimize cutting and filling in all types of road construction

Proper bridges and culverts for stream crossings

2. Water Quality Preservation of Riparian Reserves

Protection of sensitive areas e.g. watersheds

3. Flora and Fauna Ecology Reducing damage to residual trees and other vegetation

Protection of significant forest formation and landscape

Wildlife management

4. Socio Economic Considerations Provision of employment opportunities

Protection of water sources and supply

Workers’ safety and health

5. Biomass and Waste Pollution Proper disposal of all types of waste

6. Remedial Operation Rehabilitation of degraded areas

Reducing surface flow current

Removing structures affecting streams and rivers flow

7. Forest Fire Risk Forest Fire Management Plan


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Comprehensive mitigation framework to manage the impact of the forestry activities in the Licensed Area are shown below:

Forest Function Activity Objective of Mitigation Mitigation of Impact

Protection Watershed management

Reduction of accelerated run off and sedimentation

Forest zoning by forest function

Delineation of protection compartments according to management restrictions

Natural forest management: no clear felling, long harvesting cycles, natural regeneration.

RIL

No ground skidding across streams

Alignment of roads away from key habitats

Road constructions during dry season only

Stabilization of road banks

Wildlife protection

Minimum disturbance of habitats of endangered mammals

Forest zoning

NFM

Road construction and harvesting according to standards given above

Fire Control Reduction of fire hazard Fire management plan for the forests based on prevention, detection and suppression

Pest & disease control

Prevention of contamination of soils and vertebrate fauna with pesticides

Application of bio-degradable pesticides.

Restriction of use only during non-breeding season of insectivorous animals.

Restriction of use to production compartments only.

Safe disposal of waste.

Timber Production

Forest tending (Silvicultural operation)

Minimum disturbance of natural succession and bio-diversity

Elimination of immediate competitors of commercial trees only.

No eradication of weeds: only liberation of commercial regeneration.

Use of bio-degradable chemicals.

Rehabilitation (Enrichment planting)


Removal of vegetation only along planting lines.

Planting of indigenous timber & high value exotics.

Conversion to ITP

Reduction of accelerated soil erosion and safeguarding minimum water quality

Forest zoning according to site suitability (slope, depth, nutrients)

No blading of top soil

No burning

No terracing

Apply slow-release fertilizer.


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Forest Function Activity Objective of Mitigation Mitigation of Impact

Timber Production

Harvesting Safeguarding of future forest stands at compartment level

Felling of trees based on silvicultural tree marking.

Directional felling

Employment of low impact yarding systems

Road construction

Reduction of accelerated soil erosion

Minimizing road density by employment of LDCCS.

Road gradient, width, drainage system and stabilization of banks according to minimum standards

Community Needs

Community forestry

Prevent encroachment Awareness campaigns

Provision of employment through long-term forest operations

Issuing of licenses for timber felling and hunting according to management plan

Recreation / Ecotourism

Conversion of forest for recreation


Conserving the forest and forest resources for recreational purposes with minimum disturbances to the natural habitat

Forest Management Standards

Forest Management Standards promote sustainable forestry practices developed by the Forestry

Department, to ensure the management is compatible with ecological processes and safeguards all

relevant forest functions for society. These are environmental protection, customary land rights,

production and recreation.

Forest Management Certification

SFDSB initiated the certification process in 2014 and it is envisaged that it will be fully certified by 31.12.2017 by any accredited forest credible certification body such as FSC and MTCC. Besides complying with social and environmental standards of Principle and Criteria for certification, SFDSB will carry out its forest management in accordance with the following guidelines:

i. To have strong forest and environmental protections standards, which require protection of HCVFs and good forestry practices that reduce toxic chemical use

ii. To ensure strong community protection standards by protecting native people’s rights, require workers to be paid competitive wages and require compliance verification with social and international policies and laws

iii. To be transparent in that the forest management system is governed by an equal balance of economic, social and environmental considerations

iv. To ensure good governance in every aspect and to be legally verified in its timber production


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Chapter 8 - Monitoring, Internal Auditing and Reporting

Monitoring

SFDSB monitoring will include all aspects of forest management such as boundary maintenance,

timber harvesting operations (pre and post harvest), silviculture operation, road construction, forest

security and protection, soil protection, environmental impacts, wildlife, community forestry

development and continuous forest inventory.

Regular monitoring is to ensure compliance and early recognition of problems; and to take

corrective actions immediately.

Key Section Monitored Frequency

Boundary maintenance Annually

Pre-Harvest Inventory (CHP) Each CHP

CHP (Post-Harvest) Monthly, weekly or daily

Silvicultural Tending Monthly

Road Construction Monthly

Forest Security & Protection including Wildlife Monthly

Environmental Management Annually

CF Project Bi-annually

CFI Every 2 years

Resource Monitoring

Ecosystem Management (BOLEH) Strategies

The objective is to develop a conservation programme with a provision of monitoring of forest

growth and dynamics for a review 10 years after implementation. Monitoring the forest ecosystem

using the application of remote sensing and GIS as a management tool and establishment of

permanent sample plots (PSPs) for documenting detail changes in forest structure and composition.

At present, 50 permanent sample plots are actively being monitored by Kitayama et al from Kyoto

University and Sabah Forestry Department’s Research and Development Team.

Wildlife Monitoring

All wildlife that are found in Sapulut FR should be identified and monitored. However, time and

monetary resources are not available. In the past, the sample-based approach has been used for

conducting studies in the Sapulut FR. Wildlife monitoring using survey techniques including

transects, will be implemented accordingly and for effective monitoring, staff assigned will have to

be trained by wildlife experts.


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Internal Auditing

SFD and other third party auditors will carry out their periodic and continuous surveillance and

systematic auditing in SFDSB forest operations. SFDSB has also established its own internal auditing

that is responsible for carrying out regular internal monitoring and auditing of all forestry activities

in the Licensed Area to ensure SFDSB and the contractors are in compliance with the legal

requirements.

Reporting

The reporting type and frequency are as follows:

Type Submission to Frequency

Internal Use General Manager Monthly

Quarterly

Annually

*Depends on the sensitivity of the topic

Environmental Compliance

Report (ECR)

Environmental Protection

Department

Once every four months

SFMLA Compliance Report Sabah Forestry Department Once a year

Plan Review

The 3rd FMP is subject to a review by the year 2020/21 which provides an opportunity to update the

resource situation, to refine the forest zoning scheme and management prescriptions, and to

respond to new information or changes in the SFD and/or government policies, management

approach, as well as changes in technology and market conditions. The following aspects will be

considered during the mid-term review:

Comparison between the targets and actual achievements of all management activities

carried out

Assessment of the forest resources (especially yield) through the evaluation of growth data

from the CFI or BOLEH System plots

Evaluation of the development in terms of species diversity, soil, water and wildlife

protection, and community forestry development

Assessment of any major changes in the environmental and socio-economic conditions and

other requirements should the Licensed Area be certified in 2015


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Chapter 9 - Manpower and Budget Requirement

Manpower

Overall Manpower Summary as of December 2016:

Location Total

Kota Kinabalu Office 12

Base Camp, Sapulut 338

Tawau Office 15

Sandakan Office 2

Grand Total 367

For some forestry related activities in the Licensed Area, work will be carried out by qualified private

contractors who are required to source labour from local communities living within and adjacent to

the Licensed Area.

Budget and Cost Distribution

Profits generated from logging in the ITP compartments (internal sources) and loan from the Federal

Government agency will finance the forest operations / activities as prescribed in the 3rd FMP for the

next 10 years. The cost centers are confined to forest restoration, silviculture, roads, general

expenses and administrative cost.

Chapter 10 - Financial Analysis

A total of RM683.3 million is estimated to be required to run the operations and activities in the

FMP over the planning period. The generated gross revenue is projected to be at RM563 million and

net profit (surplus) at RM6.8 million at current prices while the amount of royalties to be paid to the

government is estimated at RM112 million. Based on the sensitivity analysis, the projects remains

viable (positive net profit) if revenue declines by 5% and cost by 10%.

CONCLUSION

The 3rd FMP will be a framework to manage the Licensed Area with clear objectives and a set of

activities that set the direction towards responsible forestry management. The strategies and


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objectives are developed to be consistent with the resources available, management constraints and

also meeting the stakeholders’ concerns and expectations based on the combined needs of the

sustainable usage of forest resources and sustainable viability of the company’s resources.

SFDSB vision for the NFM area is to bring back the natural forest and manage it sustainably to

ensure a supply of quality timber will always be available from the NFM areas.

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