Logo Rationale

Three Sabah maps: Represent the forests as a natural heritage and the backbone of Sabah’s economy, for the past, present and future generations.

Roof and fence structure: Symbolises the total commitment of the Forestry Department as the custodian of the forests, which subscribes fully to the principles of sustainable forest management.

Circle and golden line: Symbolises the importance of the forest ecosystem integrity for the protection of the environment and biodiversity

Opposite page: Sg. Danum in the early misty morning. (Photo by Dr. Arthur Y.C. Chung)

Sabah Forestry Department

ANNUAL REPORT 2016

Published by

Sabah Forestry DepartmentLocked Bag 6890009 SandakanSabah, MalaysiaTel No.: 6089-660811/242500Fax No.: 6089-671303/672579Website : www.forest.sabah.gov.my

Copyright © 2016 Sabah Forestry Department, Sandakan

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photo-copying, recording, or otherwise, without prior permission of the copyright owners.

Sabah Forestry Department Annual Report 2016

ISSN 1823-0954

Printed in Malaysia

Sabah Forestry Department Headquarters, Sandakan

Vision & Mission ........................................................................................................................................ viObjectives .................................................................................................................................................viiDirector’s Message 2016 .......................................................................................................................... ix1. Strategies ........................................................................................................................................... 12. News in Pictures .................................................................................................................................. 53. Sustainable Forest Management (SFM) & The Preservation of Equatorial Rainforests ................... 114. Personnel ........................................................................................................................................... 175. Establishment Profile ........................................................................................................................ 316. Human Resource Development ........................................................................................................ 437. Forestry Training Institute ................................................................................................................. 518. Publicity & Awareness ....................................................................................................................... 579. Quality Management ........................................................................................................................ 6510. ICT Studies & Services ...................................................................................................................... 7111. Enforcement, Investigation & Prosecution ........................................................................................ 7712. Project Management & General Services ......................................................................................... 8313. Forest Revenue & Expenditure ......................................................................................................... 9514. Forest Industries & Statistics ........................................................................................................... 10115. Forest Sector Planning ..................................................................................................................... 117 • Policy and Legislation .................................................................................................................... 117 • International Forestry & Corporate Affairs ................................................................................... 122 • Project Collaboration .................................................................................................................... 139 • Sectoral Development ................................................................................................................... 148 • Special Features on Projects ......................................................................................................... 157 • Special Features on Events i. Launching of the Heart of Borneo @ The Atrium ................................................................... 168 ii. 2nd Sabah’s Ramsar Conference, 10th November 2016 ............................................................ 169 iii. International Conference on Heart of Borneo (HoB) “Enabling and Empowering Conservation through Science-Policy Interface, Conservation Finance and Community Engagement” .......................................................................................................................... 17116. Forest Restoration Projects Under The Community Forestry and Forest Rehabilitation Funds ...................................................................................................... 18117. Forest Resource Management ........................................................................................................ 19318. Forest Protection ............................................................................................................................. 21919. Sustainable Forest Management ...................................................................................................... 22920. Social Forestry ................................................................................................................................. 24921. Deramakot Forest Operations .......................................................................................................... 25922. Mangrove Forest Management & Restoration ................................................................................ 27723. Ulu Segama-Malua Sustainable Forest Management Project ......................................................... 28524. Ulu Kalumpang-Wullersdorf Sustainable Forest Management Project ........................................... 30525. Timimbang-Botitian Sustainable Forest Management Project ......................................................... 31126. Tangkulap-Pinangah Forest Development Project .......................................................................... 31527. Conservation Area Management Plan (CAMP) for FMU 10 ............................................................ 32328. Northern Gunung Rara Sustainable Forest Management Project .................................................. 33129. Sugut Sustainable Forest Management Project .............................................................................. 33930. Special Features

• The lesser-known Terap Togop tree, Artocarpus elasticus Rienw. ex Blume (Moraceae) ............... 344• Communicating the Message of Forest Conservation Through a Series of Video Documentary Productions ............................................................................................................... 349• Bornean Sun Bear Conservation Centre – 2016 Report ................................................................... 353 • Borneo Rhino Sanctuary (BRS) Programme – 2016 Report .............................................................. 359• HUTAN – Kinabatangan Orang-Utan Conservation – Progress in 2016........................................... 362• The Bornean Banteng Programme .................................................................................................. 371

30. Research & Development• Natural Forest Ecology & Management Programme ...................................................................... 375• Plant Diversity Programme .............................................................................................................. 390 • Insect Diversity Programme ............................................................................................................. 403• Plantation Silviculture Programme ................................................................................................... 406• Tree Breeding and Seed Establishment Programme ....................................................................... 412• Insect Pest and Disease Programme ............................................................................................... 417• Utilisation of Forest Products Programme ...................................................................................... 422• Biotechnology Programme .............................................................................................................. 425• Phytochemistry Programme ............................................................................................................. 427• Soil and Watershed Programme ...................................................................................................... 432• Ecotourism Programme ................................................................................................................... 434• Consultancy Unit ............................................................................................................................... 439• Participation in Conference/Seminar/Training/Courses and Visits .................................................. 441

31. Reports, Presentations and Publications .......................................................................................... 443

CONTENTS

Abbreviations Used

AAC Annual Allowable CutADP Agro-forestry Development PlanARSM Remote Sensing Agency MalaysiaASFN ASEAN Social Forestry NetworkASOF Asean Senior Officials on ForestryAWP Annual Work PlanBBEC Borneon Biodiversity and Ecosystems Conservation ProgrammeBBP Bornean Banteng ProgrammeBCT Borneo Conservation TrustBRS Borneo Rhino SanctuaryBSBCC Bornean Sun Bear Conservation CentreCAMP Conservation Area Management PlanCAO Carnegie Airborne ObservatoryCC Compliance CertificateCEPA Communication, Education, Participation & AwarenessCF Community ForestryCGPA Cumulative Grade Point AverageCHP Comprehensive Harvesting PlansCMP Conservation Management PlanCoC Chain of CustodyCPP Core Processes ProcedureCPT CompartmentGPP General Processes ProcedureCR Compliance ReportCSPO Certified Sustainable Palm OilCSS Customer Satisfaction SurveyDFO District Forestry OfficerDFR Deramakot Forest ReserveDGFC Danau Girang Field CentreDOA Department of AgricultureDOSH Department of Occupational Safety and HealthEE Environmental EducationEFI European Forestry InstituteEIA Environmental Impact AssessmentEIP Enforcement, Investigation & Prosecution DivisionEMP Environmental Monitoring ProgrammeEMS Environmental Management SystemEPD Environment Protection DepartmentEPU Ekonomi Perancang Unit (Economic Planning Unit) EU EuropeanEU-FLEGT

European Union-Forest Law Enforcement, Governance and Trade

FCS Forest Checking StationFDRS Fire Danger Rating SystemFFB Fresh Fruit BunchesFMA Forest Management AreaFMP Forest Management PlanFMU Forest Management UnitFR Forest ReserveFRA Forest Resource AccountingFRC Forest Research CentreFRM Forest Resource Management DivisionFSC Forest Stewardship CouncilFORESS The Sport, Recreation & Welfare Club of Sabah Forestry

DepartmentFSP Forest Sector Planning FWI Fire Weather IndexGEF Global Environment FrameworkGFTN The Global Forest & Trade NetworkGIS Geographical Information SystemsGPS Global Positioning System

GTZ German Organisation for Technical CooperationHEAP Hutan Environmental and Awareness ProgramHCV High Conservation ValueHCVF High Conservation Value ForestHCS High Carbon StockHoB Heart of BorneoHRD Human Resource DevelopmentHFR Honorary Forest RangerHWW Honorary Wildlife WardenIAA International Award AchievementIACC Implementing Agency Coordination CommitteeICT Information & Communication TechnologyINSAN Training Institute for State Public ServiceINTAN National Institute of Public Administration, Malaysia IP Investigation PaperIPS Institut Perhutanan Sabah (Sabah Forestry Institute)ITP Industrial Tree PlantationsITTO International Tropical Timber OrganizationIUCN International Union for Conservation of NatureJCSC Jurisdictional Certification Steering CommitteeJFM Joint Forest ManagementJICA Japanese International Cooperation AgencyJKKK Village Security and Development CommitteeJKM Jabatan Ketua Menteri (Chief Minister’s Department)JPANS Jabatan Perkhidmatan Awam Negeri Sabah (Sabah Public

Services Department)JPKN Jabatan Perkhidmatan Komputer Negeri (State Computer Services

Department)JPPP Ministerial Level Development CommitteesJPPS Jabatan Pembangunan Persekutuan Sabah (Federal Development

Department Sabah)JPSM Jabatan Perhutanan Semenanjung Malaysia (Peninsular Malaysia

Forestry Department)JTPK Jabatan Tindakan Pembangunan Kementerian (Ministers

Development Action Committee)KEW Finance and Expenditure Division (SFD HQ)KG. Kampong (Village)KKI Corporate Communication & Innovation Division (SFD HQ)KOCP Kinabatangan Orang-Utan Conservation ProgrammeKPI Key Performance IndicatorsKFRCP Klias Peat Swamp Conservation PlanKMC Kinabatangan Management CommitteeKPFC Klias Peat Swamp Field CentreKRA Key Result AreasKRSI Kinabatangan River Spirit InitiativeKSPRH Kursus Sijil Perhutanan Renjer HutanKSPPH Kursus Sijil Perhutanan Pengawas HutanLAN Local Area NetworkLFR Lingkabau Forest ReserveLKSW Lower Kinabatangan-Segama WetlandsLKWS Lower Kinabatangan Wildlife SanctuaryLTL Long-term LicenseLTLA Long-term License AgreementMCEE Monitoring, Control, Evaluation, EnforcementMFR Mangkuwagu Forest ReserveMFTN Malaysia Forest Trade NetworkMoF Ministry of FinanceMoT Ministry of TourismMoU Memorandum of UnderstandingMPC Malaysian Productivity CorporationMPCT Management Planning Core Team

Abbreviations Used

MRV Monitoring, Reporting and VerificationMT Metric TonnesMTC Malaysian Timber CouncilMTCC Malaysian Timber Certification CouncilMTCS Malaysian Timber Certification SchemeMTIB Malaysian Timber Industry BoardMWHCB Malua Wildlife Habitat Conservation BankNCR Non-Compliance ReportNFM Natural Forest ManagementNGO Non Governmental OrganisationNHC Nature Heritage ConservancyNUS Northern Ulu SegamaNRE Ministry of Natural Resources and EnvironmentNRO Natural Resource OfficeOSH Occupational Safety & HealthPCT Potential Crop TreesPD Project DocumentPDP Plantation Development PlansPEFC Program for the Endorsement of Forest Certification SchemePES Payment on EcosystemPFE Permanent Forest EstatePFR Permanent Forest ReservesPIF Project Implementation FrameworkPMGS Project Management & General ServicesPPA General Services and Projects DivisionPSP Permanent Sample PlotPTK Penilaian Tahap Kecekapan (Evaluation Competency Level)QMS Quality Management SystemQOAP Quality Objective Achievement PerformanceQO Quality ObjectiveQS Quality SystemOFI Opportunity for improvementOP Occupation PermitsOSH Occupational Safety and HealthRBJ Rakyat Berjaya Jelata SabahRDC Rainforest Discovery CentreREDD Reducing Emissions from Deforestation and Forest DegradationRIL Reduced Impact LoggingRM Ringgit MalaysiaRMK Rancangan Malaysia Ke (Malaysian Plan)RSPO Roundtable for Sustainable Palm OilSAR Search and RescueSBS Social Baseline SurveySCS Scientific Certification SystemsSDBEC Sustainable Development of Borneon Ecosystem ConservationSDC Sabah Development CorridorSESB Sabah Electricity Sdn. Bhd.SF Sabah FoundationSFC Sarawak Forestry CorporationSFD Sabah Forestry DepartmentSFD-SFPs

Sabah Forestry Department – Social Forestry Projects

SFD-YS Sabah Forestry Department-Yayasan SabahSFI Sabah Forest IndustriesSFM Sustainable Forest ManagementSFMLA Sustainable Forest Management Licensee AgreementSFMP Sustainable Forest Management ProjectSPINS State Project Information Network SystemsSPP Project Monitoring SystemSRFP Sandakan Rainforest Park

SPRM Suruhanjaya Pencegahan Rasuah Malaysia (Malaysian Anti-Corruption Commission)

SUHB Setiausaha Hasil BumiSWD Sabah Wildlife DepartmentTBSFM Timimbang-Botitian Sustainable Forest ManagementTCTP Third Country Training ProgrammeTDP Timber Disposal PermitTFRC Telupid Forest Reserves ComplexTLAS Timber Legality Assurance System TPA Totally Protected AreaTRCRC Tropical Rainforest Conservation and Research CentreTWG Technical Working GroupUM University of MalayaUMS University Malaysia SabahUNDP United Nations Development ProgrammeUNCED United Nations Conference on Environment and DevelopmentUPEN Unit Perancang Ekonomi Negeri (State Economic Planning Unit)UPS Uninterruptible Power SupplyUPM Universiti Putra MalaysiaUPPH-JKM

Anti Illegal Logging Unit, Chief Minister’s Department

USM Ulu Segama-MaluaUSGS United States Geological Survey VLC Verification of Legal ComplianceVLO Verification Legal OriginVJR Virgin Jungle ReserveVPA Voluntary Partnership AgreementWWF World Wild Fund (Formerly World Wildlife Fund)Y.A.B. Yang Amat Berbahagia (The Most Honourable)Y.Bhg/Y.B.

Yang Berbahagia (The Honourable)

Our VisionTowards the realization of sustainable forest management

Our MissionTo effectively and efficiently plan and implement the management of the State’s forest resources in accordance with the principles of sustainable forest management

Our Objectives1. To ensure that the management and development of Sabah’s forest

reserves are in accordance with the principles of Sustainable Forest Management;

2. To optimize the utilization of forest resources in order to sustain socio-economic benefits to the State;

3. To ensure that the development of the forest industry corresponds with the

long term productive capacity of the state’s forest resources;

4. To ensure sufficient trained manpower and expertise to implement Sustainable Forest Management efficiently and professionally;

5. To intensify the R & D program and efforts toward the development and implementation of Sustainable Forest Management;

6. To conserve sufficient natural forest areas for the protection and maintenance of the environment, water resources, soils, and biodiversity;

7. To promote the rehabilitation of natural forests and the establishment of forest plantations;

8. To enhance enforcement strategies to safeguard the forest resources;

9. To increase public awareness on the importance of forests and Sustainable Forest Management; and

10. To ensure that sufficient financial resources, technology, and logistical supports are available for the implementation of Sustainable Forest Management.

Tawai Forest ReservePhoto by Nigel Edward Dato BalanjiuCanopy of the majestic Koompassia excelsa.

(Photo by Dr. Arthur Y.C. Chung)

A beautiful small and fragrant epiphytic orchid, Schoenorchis secundiflora, found in Mt Silam which can also be encountered in the lowland forests of Peninsular Thailand to West Malesia.(Photo by Nigel Balanjiu)

Director’s Message 2016

Ladies & Gentlemen, I present to you the 2016 Annual Report, as the Director of Forestry, for the last time. Come 1st January 2017, we revert back to where we

started in 1914, emphasising the core mandate, as Chief Conservator of Forests, to focus on conservation - i.e. wise use of our forests and for the greatest good of the greatest number in the long run. Let that inspirational change in name, be reflected in earnest, on the ground. 2016 was a hectic year with innovative actions that will hold us in good stead as time passes. The start and completion of the Sabah Carbon Forest Mapping, in collaboration with the Carnegie Airborne Observatory, a highlight, has provided us with a wealth of information, on the state of our forests. Areas with high carbon obviously reflect heavy forests that are in healthy condition. It is a pleasant surprise to know that there are still good stands outside the TPAs (Totally Protected Areas) network, even on non-gazetted lands. Actions can then be taken later on, to include such areas under TPAs. Compromises can also be made to swap good forests outside TPAs with degraded forests in the TPAs. This will be implemented on a step by step approach. Nevertheless, the road to good forest governance and worldwide recognition of its credibility, is still hampered by the inflexibility of prominent international timber certification bodies, on the issue of “conversion” - that sometimes, it is inevitable and unavoidable, to convert some indigenous forests to tree plantations for economic viability and the sustainance of an enterprise. The arbitrary restrictions imposed (eg. 5% or less conversion, cut off dates on conversion etc.) and changing goal posts on standards, have hampered progress considerably. The purported proposed new guidelines to allow some flexibility, are an arduous task, that has focused so much on conversations, but little on substance. This can cause frustration to build up to the extent that the proponents of certification will just give up - a dangerous outcome in the long run. We therefore appeal to those who can make a difference, to look at cases on their own merits and not on blind blanket guidelines and appearing exclusive. If even indigenous tree plantations of at least (10) species, are rejected on the grounds of them being conversions, then tropical forests that are already degraded or treeless/shrubs, will eventually be used for something else. Amazingly, temperate forests of 2–3 species, of low diversity, replanted from the original

... continued on next page

devastated virgin forests, do qualify easily for certification. Why is this so? We also continued working on our CSPO (Certified Sustainable Palm Oil), jurisdictional initiative, launched by the State Government of Sabah, in November 2015, through the working group established. Progress is encouraging given the challenges faced in dealing with so many issues, players and stakeholders. We expect the momentum to pick up in the next year now that climate change is becoming a central issue evident through so many climate events around the world - droughts, typhoons, floods, landslides, massive forest fires, etc. Another idea we are toying around with, is a jurisdictional approach for forest management in Sabah - that in fact, may be easier to address. Given the sheer size of the oil palm industry in Sabah (biggest source of State revenue, at least 1.5 million hectares and growing), it must be brought to sustainability as a matter of priority. And finally, on the concept of sustainability of timber production. In Forestry Schools around the world, the Annual Allowable Cut (AAC), is taught as the Gospel Truth. True, in the beginning of development in any civilisation, timber is vital for building materials, weapons, a trade item, industrial products etc. However, today, with industrialisation, timber is no longer vital to sustain human needs, because of substitution and changing life styles. On the contrary, it is the forests with their biodiversity that need attention. In other words, AAC is not the priority goal. You do not need super big trees, you do not need super quality that can only come from old growth forests etc. What instead you should focus on, is BIO-DIVERSITY: the life support systems, the wildlife that live there needed for forest regeneration, the variety of beneficial plants for life support and regeneration, a repository of possible medicines, carbon bank etc. This brings me to the point that: a logged-over forest with mostly, non-commercial timber, but still retaining its bio-diversity, is just as important as a highly commercial forest of monster trees. The yard stick for success should be whether, we have managed to retain biodiversity or otherwise. The logged-over and secondary forests of Sabah, serve these purposes. Do not go to war because of AAC. The planted forests will take care of our industrial needs - necessitating some degree of concern and urgency. Ladies and gentlemen, thank you for your attention. I hope the articles, herein, reflect our quest for Bio-Diversity sustainability and our achievements.

Thank you.

Datuk Sam MannanDirector of Forestry

... continued from previous page