KOTA KINABALU: The Sabah Forestry Department has been urged to identify more potential economic activities from the industry that can generate higher income for the state.

Sabah Chief Minister Datuk Seri Hajiji Noor said this is to achieve a RM165mil revenue target from forestry activities including from forest reserves, government lands and those with grant titles, by year end.

“So far, we have achieved RM39.7mil, which is about 24% of the target amount and if we are able to keep this momentum, we would not only achieve but even exceed our target,” he said.

He said this at his welcoming speech at the Forestry Appreciation event at the Sabah International Convention Centre (SICC) here on Friday (May 3) night.

Hajiji’s speech was read by Finance Minister Datuk Seri Masidi Manjun.

He said forest-based recreational activities, payment for forest ecosystem services, carbon trade via Reducing Emissions from Deforestation and Forest Degradation Plus (REDD+), green energy supply and commercialisation of research findings can be explored for this purpose.

“Although the state Forestry Department only collected RM1.647mil from forest recreational activities, which is less than 2% the overall revenue collected from this sector, its impact is huge especially for conservation efforts in Sabah,” he said.

He said other than conservation purposes, this could provide more recreational options for locals in the state, Hajiji said.

In line with the commitment to enhance sustainable forest management governance, the department aims to certify or obtain international certification for all forests managed under them by 2025, he said.

So far, over 280,616 ha of forests management areas have been certified, he said, adding that the department would also restructure and review the Sabah Timber Legality Assurance System (Sabah TLAS) as a due diligence system to fit the requirements of a commodity trade regulation set by the European Union in 2022.

Hajiji said forestry certification and the Sabah TLAS implementation could counter attacks from some parties who question the sincerity and accountability of Sabah’s forest resources governance.

On other developments, the Forestry Department had in 2023 developed its digital database which among others, supports forest resource management more efficiently, allows timber royalty payment application online via an app, and set up a timber royalty assessment system for the convenience of revenue collection to the state, he said.

Sabah, he said, aims to also develop a total of 18,000ha of forest farms every year, and achieve 400,000 ha of forest farm development by 2036.

“Therefore, I call upon all forest management operators and licence holders of the Sustainable Forest Management Licence Agreement (SFMLA) to boost economic activities in this field so that we can achieve our targets,” added Hajiji.

To further develop timber trade in the state, an economic value chain study is being conducted, he said.

Some of the trees and plants which are available which have been identified as able to add value to this cause and should be developed further are the Acacia, Eucalyptus, Batai, Laran and rubber, he said.

“This is to ensure that the processing cost including transportation can be reduced while allowing for better returns in the industry,” Hajiji said.

https://www.thestar.com.my/news/nation/2024/05/04/identify-more-potential-economic-activities-from-forestry-activities-says-sabah-cm