19 SFM - Sabah Forestry Department

Sustainable Forest Management
19
Sustainable Forest Management
T
he management of Sabah’s forests has evolved over the
past decades from managing for timber to managing for all
the values of forests through sustainable forest management
(SFM). Consequently, SFM is the cornerstone of our policy and
the key driver for our business and for our SFM partners - the
Sustainable Forest Management License Agreement and Long
Term License (SFMLA/LTL) holders.
The highlight of this year’s report is an analysis of our
performance based on the following six thematic elements/
areas of SFM:
• Forest Management Planning;
• Forest production;
• Forest Renewal and Maintenance;
• Forest Disturbances and Environment;
• Social Forestry; and
• Monitoring and Compliance
There had been a significant improvement on SFM planning
since 1997 with good participation and coordination from all
relevant stakeholders for the purpose of achieving SFM. There
was also a good level of understanding and acceptance by
those who are involved in the implementation task especially
from our SFM partners.
This year, one new SFMLA holder – Lebihasil Sdn. Bhd.
has signed a Licence Agreement (valid for 50 years) with the
State Government to manage 1,000 ha in FMU 17A based
on the SFM principles. The signing ceremony between the
government, represented by the Setiausaha Hasil Bumi and
Lebihasil Sdn Bhd, as the Licensee, was held on 3rd March
2006 in the SFD Headquarters.
There has been an appreciable degree of progress towards
SFM in 2006. However, the full implementation of SFM
remains far from satisfactory. While some of our partners show
a considerable performance level, there are others who still
have a long way to go in building the practice of SFM. For
example, we still have more work to do in areas such as forest
restoration, silvicultural treatments and further improving our
performance and compliance with various practice codes.
Lebihhasil Sdn. Bhd. managed to complete their FMP in 2006
and this was subsequently approved for field implementation.
The State Government recognizes the importance of bringing
Sabah’s forests under secure and effective conservation
and management. Moreover, Sabah is a vital element of the
broader Borneo ecosystem whose very high global biological
significance is well established. Consequently, the State
Government has allocated another 250,000 ha in Ulu SegamaMalua Forest Reserves (USM) and 51,118 ha in Ulu Kalumpang
Forest Reserve for SFM, in which, both forest reserves are
directly under our (SFD) management. This is highlighted
in Chapter 22, under Special Features. Taking cognizance
of these vitally important conservation areas especially in
USM, which arguably has the world’s largest concentration of
orang utans (Pongo pygmaeus morio), the State Government
placed them under SFM on the 15th March 2006. Following
this decision, we formed a planning team comprising, among
others, Yayasan Sabah as the Licensee, WWF, HUTAN (a
French NGO), community groups and the Sabah Society
to prepare a medium-term FMP for each area. This was
subsequently followed with integrated and coordinated series
of consultations, meetings and other collaborations through out
the year that directed towards the planning process of USM
and Ulu Kalumpang Forest Reserves respectively.
The forest management planning process involves the
input of a number of individuals and groups to describe the
current condition of the forests, the values and benefits to be
obtained from the forests, the desired condition of the forests in
the future, and the best methods to achieve that goal. Although
the FMP preparation is expected to be completed by the end
of 2007, various activities have already started in both forest
reserves in 2006. Meanwhile, the pre-assessment work for
USM FRs was initiated in August 2006 by WWF-Malaysia.
Global Forestry Services Malaysia Sdn Bhd took the lead role
in conducting the pre-assessment. The pre-assessment was
conducted based on the FSC and MC&I standards and the
“Modular Implementation and Verification” system.
Forest Management Planning
In 1997, the SFM policy came into effect. The policy mandates
that Sabah’s forests be managed based on the basic principles
of forest management to ensure they remain large, healthy,
diverse and productive. In order to translate the SFM policy
into a well-coordinated operational program for the forest
management units (FMU) and for regulating forestry activities,
a forest management plan (FMP) is to be prepared. An FMP
is required to provide continuity in managerial operations over
time, to formalize administrative arrangements and to provide a
basis for monitoring forestry activities. During the year, only one
new FMP was approved, that is, from K.M. Hybrid Plantation
Sdn. Bhd. - our new partner in SFM.
Although progress in the implementation of a plan is
regularly reviewed during the year as part of the process of
maintaining control over the management of an FMU, it is
also helpful for a more comprehensive review to be made
periodically during the term of a plan or to conduct a mid-term
review to evaluate the operation of a plan. In this regard, two of
our partners (SFMLA holders) have undertaken to review their
respective plans in 2006. Consequently, the revised plan from
TSH Resources Bhd was approved while The North Borneo
Timbers Corporation Sdn. Bhd. was expected to finalize their
revised plan in early 2007. Meanwhile, our new SFM partner –
Forest Production
Despite difficulties and some unstable deficiencies, there
has been some significant progress in 2006. The year 2006
saw 6 of our SFMLA and 2 LTL partners involved in forest
harvesting (within natural forest management and/or industrial
tree plantation areas/compartments). We (SFD), on the other
hand, continued our eco-friendly harvesting in DFR. The
total area harvested from natural forest management (NFM)
compartments in 2006 was approximately 60,153.23 ha and
the total volume of timber harvested was 1,008,688.32 m3 (see
Charts 19.1 and 19.2), while the total area harvested from
industrial tree plantation compartments was approximately
152,478 ha with a total production of approximately 2,453,884
m3 (Charts 19.1 and 19.2). Like in 2005, the majority of the
timber production from the NFM area still came from Yayasan
Sabah (737,619 m3), Benta Wawasan (192,882 m3), Timberwell
Berhad (37,316.42 m3) and Sabah Forest Industries Sdn Bhd
(SFI) - 24,741.9 m3.
Yayasan Sabah has the highest production from the ITP
area (1,040,754 m3), followed by Benta Wawasan (789,311
m3), SFI (449,213 m3) and Sapulut Forest Development Sdn
Bhd (55,992 m3). The lowest production (12,047 m3) is from
Lembaga Urusan Tabung Haji (LUTH). Meanwhile, Deramakot
Forest Reserve, which is an FSC certified forest, produced
16,129 m3 of certified timber from 620 ha.
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Annual Report 2006
Chart 19.1: Area harvested (NFM and ITP)
by SFMLA/LTL holders and the SFD in
2006
Chart 19.2: Log Production (NFM/ITP
areas) from SMFMLA/LTL areas and DFR
in 2006
Chart 19.3: Total area silviculturally treated
and enriched by SFMLA/LTL/SFD in 2006
Chart 19.4: ITP development by SFMLA/
LTL holders in 2006
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Sustainable Forest Management
Forest Renewal and Maintenance
The aim of silviculture is to enhance the survival, growth and
quality of potential crop trees. The systematic application of
an appropriate silvicultural system is a basic principle in SFM.
Reduced impact logging is considered not only as an ecofriendly harvesting system, but it also has a major thinning
effect whereby the pole-sized trees, saplings and seedlings are
provided with “growing-space” whilst minimal soil disturbance
creates conditions, which enables seeds of many species
to germinate and become established. In other words, good
harvesting practice is a part of silvicultural treatment.
The silvicultural treatment practiced in Sabah is in the
form of selective liberation of potential crop trees (PCT) thus,
avoiding the blanket elimination of secondary species and noncommercial trees. Treatments involve the selective liberation of
selected PCTs mainly by the removal of overhead shade and
the cutting of vines and climbing bamboos. This practice has
been aggressively pursued in 2006 where forests silviculturally
treated was approximately 11,689 ha, which was about 3,583
ha less compared to the previous year (Chart 19.3).
Amongst the SFMLA/LTL holders, Timberwell Berhad had
the most area silviculturally treated with a total area of 3,026
ha followed by Bornion Timber Sdn Bhd (2,148 ha). Yayasan
Sabah in collaboration with the SFD had silviculturally treated
400 ha in USM FRs. The SFD, on the other hand, had carried
out silvicultural treatment (1,000 ha) in Deramakot Forest
Reserve and 4,000 ha in Tangkulap/Pinangah Forest Reserves
(FMU 17A) during the year. Again, this is a major achievement
of the SFD in 2006.
Harvesting of Acacia mangium in SFI Plantations
Forest Disturbances and Environment
Forest protection is a fundamentally important principle of SFM
and therefore, it is our commitment to take appropriate action
to effectively protect our forests from any threats and activities
that might impair the achievement of SFM objectives.
Like in 2005, various measures have also been taken in
2006 to improve forest protection. Besides practicing RIL and
having better monitoring and control systems, we continued
to apply the forest management strategies, EIA mitigation
measures and guidelines that have been developed to mitigate
and to ensure long-term genetic, species and habitat diversity,
and to conserve critical eco-systems such as, high conservation
value forests. Measures have also been taken to follow closely
the fire management strategies and determining appropriate
levels of protection, based on increased understanding of fire,
ecology and on economics. More reports on forest protection
are highlighted in Chapter 18.
Industrial Tree Plantations (ITP)
The total area planted under the ITP program in 2006 by the
SFMLA/LTL holders was approximately 6,744.12 ha (see
Chart 19.4). SFI had the largest area planted (2,404 ha) and
followed by Sapulut Forest Development Berhad (1,552 ha).
The other SFMLA holders involved in ITP programs are TSH
Resources Berhad (927 ha) Bornion Timber Sdn Bhd (726
ha), Timberwell Berhad (350 ha), LUTH (350 ha) K.M. Hybrid
Plantation Sdn Bhd (327 ha), Total Degree Sdn Bhd (92 ha) and
KTS Plantation Sdn Bhd (16 ha; enrichment – 240 ha). The
major tree plantation species planted were Acacia mangium
and rubber, while Anthecephalus chinensis, Paraserianthes
falcataria, Eucalyptus grandis, and Eucalyptus deglupta were
also planted, but on a smaller scale.
As of 2006, the cumulated total area planted under the
ITP program in Sabah is approximately 145,117 ha (excluding
enrichment planting). This cumulated total area, however, may
be reduced after the area logged in the same year is known.
Acacia mangium plantation in SFI
The Well-Being of Local Communities
2006 saw our partners’ involvement with local communities,
with two common modes of engagement: jobs in commercial
forestry and jobs in plantation forestry. Each mode of
engagement brought opportunities for the local communities
although the latter’s weak bargaining power reduced the
level of benefits gained. While our partners have provided
jobs for some local communities and conducted several
Mixed dipterocarp forest in SFI Concession area
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Annual Report 2006
dialogue sessions for conflict resolution, they are yet to
actively implement community forestry programs, which are an
institutional arrangement and a requirement as per Clause 24
of the SFMLA in which, communities share in decision-making
and benefits, and contribute labor and knowledge to achieve
healthy forests and social well-being.
The common obstacles that have been identified
in preventing our partners to proceed in community
forestry programs is foremost, local communities cannot
gain recognition of community-based property rights or
governmental acquiescence that legalizes their occupation
and resource usage. The State more readily grants “property
rights” to communities only when they do not conflict with their
private commercial interests. In addition, the villagers’ land
“ownership” and “user rights” within the forest reserves often
“overlap” and are difficult to document legally. Unless these
shortcomings are solved, the participation of our partners (the
SFMLA/LTL holders) on community forestry would have a long
way to go. Nevertheless, the process of looking into solving
these problems has been initiated by us in Mangkawagu FR in
2006 under the SFD-UNDP project.
On our side (SFD), we continued to play our major role
in social forestry activities through out the year not only in
DFR but also in other parts of Sabah, particularly in the Gana
Resettlement Integrated Development Project and the SFDUNDP project in Mangkawagu Forest Reserve. The highlights
of our achievements in Social Forestry are presented in Chapter
20.
•
•
•
Review and examine the actual operations of SFM activities
carried out by our partners over the previous five years;
Examine the effectiveness in achieving the planned
objectives and provide an assessment of forest sustainability
for the FMU; and
Review license compliance with the obligations of the
specific clauses in the SFMLA.
In August 2006, we commissioned an audit in Ulu Tungud
FR (FMU No. 4), which is managed by TSH Resources Berhad.
This was the second audit carried out in the SFMLA area after
Timberwell Berhad, which was done in 2005. The SFM auditing
was carried out by our SFM Audit Team, which comprised of
six experienced professionals with their own relevant field of
expertise and the DFO of Beluran.
The auditing works were undertaken based on the eight
guiding principles as specified in the SFM Guidelines and
Tool Box Checklists, which have been designed for SFM
auditing purpose. The results of the audit, which was carried
out in FMU No. 4 had 5 major corrective action requests
(CAR), 3 minor CARs and 4 observations. There were several
recommendations and suggestions directed to TSH Resources
Berhad and the DFO. The results of the audit are summarized
below.
Commitment – The Audit Team worked closely with the senior
staff of TSH Resources Berhad through out the audit, which
provided the team with a good sense of their commitment to
SFM. The audit team observed that TSH Resources Berhad
had shown good physical and operational capabilities. They
suffered from high staff turnover but have good financial
resources and have the ability to manage and implement
SFM.
Forest Monitoring and Auditing
The implementation of SFM is monitored and audited to assess
compliance and to evaluate progress and results. We use a
combination of internal and third-party audits. The internal
audits are from the SFD SFM Auditing Team and the DFO. The
audits works are carried out at the operational level (district
Public Participation – TSH Resources Berhad was active
level) to ensure that our partners perform consistently according
in the forest management planning process especially during
to plans, regulations and required standards. The audit is done
the mid-term review of their plan. The Audit Team commended
them for their commitment to the forest management process.
based on a number of “key” operational topics which are used
as indicators for monitoring operational performance of our
partners. Scrutiny and reporting are done on a quarterly basis.
Forest Management Planning – Overall, the forest
At the end of the year, all our partners are assessed on their
management planning process was conducted according
performance.
to requirements. The forest management planning process
involved the input of a number of individuals and groups. Some
Our SFM implementation in DFR (FSC certified), on the
other hand, is closely monitored and assessed by an external
general suggestions for improvement were offered by the Audit
auditor (the SGS), while the logging operations in USM FRs,
Team to aid strategic planning for their revised plan.
which have been identified by the State Government to serve
Operational planning (Annual Work Plan) was observed to
as conservation reserves for orang utan, is closely monitored
be well done except on minor issues in the implementation,
by Global Forestry Sevices Inc. (GFS). The GFS scope of work
where they failed to meet some of the procedures/guidelines set
includes, periodic surveillance visits on logging operations
by the SFD. However, this has been addressed accordingly.
involving couped areas, providing technical input to our task
force on the approved CHPs, and on the measures to address
Plan Implementation – All areas of concern viewed by the
gaps arising from harvesting activities, and to certify that the
Audit Team were consistent with TSH Resources Berhad and
production of timbers is based on RIL systems.
the SFD’s directions. Field observations showed that plan
The year saw more of our partners performing well in
implementation of harvest operations met all requirements in
their SFM implementation as compared to last year. Our
assessment results and verification on the ground showed
that KTS Plantation Sdn Bhd, TSH Resources Berhad,
Bornion Timber Sdn Bhd, SFI, Sapulut Forest Development
Sdn Bhd and K.M. Hybrid Sdn Bhd had complied with
most of the clauses as specified in the SFM/LT License
Agreement, FMP and their respective AWP activities. As
recognition of their good performance and compliance, the
SFD awarded them a Compliance Certificate each.
Besides regular compliance monitoring, all SFM
activities are also to be audited at least once every five
years. SFM auditing is required to:
• Assess adherence to the FMP and the planning
process;
• Assess the interpretation and application of policies,
SFM Auditing Team
manuals, and guidelines at the FMU level;
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Sustainable Forest Management
Clockwise from left: Sowing rubber seeds; LTC rubber seedlings; and
rubber trees at 24 months old
procedures must be in place and operational. Planned actions
should occur at planned times, in planned places and in
accordance to the planned magnitude/target.
Monitoring – Monitoring of all forest operations was done but
this was less effective. A recommendation was given that TSH
Resources Berhad should extend its silvicultural effectiveness
and ITP development monitoring program to ensure all areas
are evaluated at least once a year. The effects of these
activities in achieving management objectives must also be
regularly measured and assessed.
the majority of instances and showed a pattern of continuos
improvement.
The Audit Team was favorably impressed with the quality of
the main roads, which were well maintained with proper slopes
and alignment and good engineering set-up. The Audit Team
was also encouraged by TSH Resources Berhad on their efforts
to build 3 bridges called “Irish bridges”. This was commendable
because they provide long-term use apart from contributing to
environmental protection. Nevertheless, the Audit Team gave
some recommendations directed to TSH Resources Berhad to
improve water crossing installations, buffer zones along rivers
and streams and on road construction and maintenance.
Achievement of the Management Objectives and Forest
Sustainability – Not all of the management objectives and
associated targets in their FMP especially on ITP development
were satisfactorily met during the first five years of their SFM
implementation. Consequently, they reviewed their plan in
2006.
In the Audit Team’s assessment of forest sustainability, it
was found that biodiversity, soil and water quality had been
maintained, while forest condition and ecological productivity
and multiple benefits to society had been partially maintained.
These partial scores do not reflect outright failure of TSH
Resources Berhad but are marked to emphasize where room
for improvement exists. The Audit Team believes that Ulu
Tungud FR (FMU No. 4) is being managed in a sustainable
manner.
System Support – Through out the audit process, the Audit
SFMLA Obligations – One recommendation was directed to
TSH Resources on the surveillance of the SFMLA boundary
issue. Another recommendation was directed to the DFO
on the demarcation of the SFMLA boundary to ensure that
demarcation of the boundary was properly done in accordance
with Clause 4 of the SFMLA.
The Auditing Team reported in its overall conclusion
that TSH Resources Berhad had shown good physical and
operational achievements. Further, the management of the
FMU has been in compliance with legislation, regulations,
EIA, and policies and they have abided by the terms of the
SFMLA.
Irish bridge
Conclusion
Notwithstanding that, the report adds considerably to our
understanding and knowledge of the status of management
of our forests. It provides a basis for how best to encourage
further progress and at the same time, it can be used to focus
our efforts as we continue to understand and enhance our
effectiveness and efficiency in the implementation of SFM at
the ground level.
Team observed that TSH Resources employees had a good
understanding of their respective duties and had adequate
education and access on training. On the other hand, the Audit
Team found that their contractors operating in the FMU have
inadequate training on forestry operations. The Audit Team
recommended that appropriate training should be provided to
their contractors while control, documentation and reporting
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LAYC Chung
Bracket fungi growing on the trunk of a dipterocarp.