Forestry
Following its establishment, the Group was allocated a concession area of about 1 million hectares to be managed over a 100-year period on a sustainable yield basis under a Sustainable Forest Management Licence Agreement (SFMLA) signed in 1997 between the State Government and Yayasan Sabah. In managing this area, the Group is aware of its obligations to carry out social programmes and environmental responsibilities for future generations.
Towards this effort, the Group strives to manage its forest lands in an integrated and sustainable manner for the long-term benefits of the people. Hence, it will continue to adopt sound forest management practices, that consistent with the state and national forestry development policies and legislation implemented over the years.
Its wholly-owned subsidiary, Rakyat Berjaya Sdn. Bhd. (RBJ) manages its forest concession area in accordance with the Sabah Forestry Department directives to ensure the economic, social and environmental obligations and values comply with applicable certification standards.
The forest area managed by RBJ has expanded significantly from its original concession area commencing as early as 2021 to include other forest reserves, state lands or titled lands throughout the State of Sabah. This includes new areas such as Kalabakan – Serudung (30,000 ha), Kalabakan - Sapulut (10,000 ha), Paitan (16,700 ha), Bonggaya (10,000 ha), Tomani (9,000 ha), Ex-Idris Hydraulic area (174,000 ha) and the Ex-SFI Sipitang area (15,000 ha).
Most of the production forest in the current concession areas are classified under Natural Forest Management (NFM) land-use planning. Within the NFM forests, RBJ contributes to Sabah’s timber supply by harvesting optimum numbers of trees using the Reduced Impact Logging (RIL) guidelines which significantly reduce damage to the residual tree stock, soil and water quality compared to conventional harvesting. This is because only several of specific diameters (DBH), heights and species are selected to be harvested using felling methods that cause less disturbance to the rest of forest stands. Meticulous planning is always executed before harvesting operations so that timber stocks are accurately estimated, monitored, and controlled to avoid unnecessary exploitation.
To reduce reliance on natural forests as the main source of timber, RBJ’s management has allocated sufficient area for forest plantation development as an important source for sustainable future timber supply to sustain the forest industries. This includes areas designated for Industrial Tree Plantation (ITP) and Integrated Mosaic Planting (IMP), approximately 23,000 hectares and 60,000 hectares respectively. Dissimilar to natural forest, plantation forest requires substantial amount of investment, a sound forest management policy and a very serious commitment in order to succeed and gain its long-term benefit. Since 2012, approximately 22,000 hectares or around 10 million of trees have been planted under co-partnership with well-recognised plantation companies namely, Gerak Saga Sdn. Bhd. (for more information please visit www.geraksaga.com), Usahawan Borneo Greenwood Sdn. Bhd. (for more information please visit
www.usahawanborneogreenwood.com), and way more.
The forest plantation area is expected to generate approximately 1.6 million cubic meters of timber by the year 2026. The implementation of forest plantation development by RBJ follows the sustainable forest management principles as outlined in the Sabah Maju Jaya Development Plan (2021-2025) and the Sabah Forest Policy 2018.
In addition, under a strategic partnership with reputable partners namely, Golden Borneo Palm Sdn. Bhd., RT Plantation Sdn. Bhd. and Silam Forest Products Sdn. Bhd., RBJ is now involved in the oil palm industry throughout Sabah. As such, RBJ is now the latest subsidiary company of Innoprise Corporation Sdn. Bhd. (ICSB) which is involved in Agro-Plantation activities aside from the two major companies namely, Sabah Softwoods Berhad and Benta Wawasan Sdn. Bhd.
RBJ believes that one of the best ways forward for the forestry sector in Sabah is through forest conservation. The Kuamut Rainforest Conservation Project (KRCP) is a comprehensive initiative undertaken by RBJ, Permian Malaysia Sdn. Bhd. (for more information please visit
permianglobal.com) and the State Government that aims at sustainable land use through forest conservation, promoting natural regeneration, and improving livelihood opportunities for local communities in the adjacent area. The KRCP has earned international recognition and is rated best in its class as one of the highest-rated Improved Forest Management (IFM) projects in the world by the carbon rating agency BeZero Carbon.
The project area of about 83,381 hectares was converted from Class 2 Production Forest into a Class 1 Forest Reserve, thereby designating it as a protected conservation area. The improved protection status of the project area has led to the evasion of timber harvesting activities, benefited both the existing biodiversity and the wildlife within and in surrounding the protected areas, facilitating species dispersal and genetic diversity. In terms of social services, the project has undertaken activities that improve health services, education, job creation, and entrepreneurship opportunities for local communities.
Through this conservation effort, a net estimated emission reduction of 20 million tCO2e is expected to be achieved over a 30-year period. This significant reduction contributes directly to global climate change mitigation efforts. It also been assessed against the science-based and globally recognised Verra Verified Carbon Standard and the Verra Climate, Community and Biodiversity Standards, under which it has achieved a gold-level certification for climate status in early 2024.
The timber industry in Sabah is relevant as it continues to be one of the major contributors to state revenue for socio-economic development. Consequently, RBJ is committed and strives to develop a sustainable forestry business with regards to economic, social and environmental obligations and values.