Global Environment Centre&Forest Research Centre(Nov 2004) of Biodiversity on Conservation Workshop Proceedings , Ulu Tungud Forest Reserve, Jointly OrganisedBy: With From: Support Prepared byPrepared TSH Resources Berhad Sabah Forestry Department

cover design by: Hooi Youli Proceedings of Workshop on Conservation of Biodiversity

Ulu Tungud Forest Reserve, Sabah

Forestry HQ Auditorium, Mile 6, Sandakan, Sabah

27 April, 2004 Table of Contents

Page No. Background 3

The Workshop 3

Participants of the Workshop 4

Workshop Programme 5

Appendices

Appendix 1: Opening ceremony speeches

Appendix 1a: Science & Technology Advisor’s speech 7

Appendix 1b: Sabah Forestry Department Director’s speech 9

Appendix 1c: TSH Forestry Chairman’s speech 11

Appendix 1d: Global Environment Centre Director’s speech ** 13

Appendix 2: Overview papers

Appendix 2a: Sabah Forestry Department paper 15

Appendix 2b: Presentation by TSH Resources Bhd 23

Appendix 2c: Presentation by Global Environment Centre 29

Appendix 3: Q & A from Session II (presentation of research findings) 36

Appendix 4: Discussion Summary for Session III 38

Appendix 5: Participant list 40

Appendix 6: Newspaper clippings of the Workshop 42

2 Background

The Ulu Tungud Forest Reserve, also known as FMU No. 4, covers about 123,000 hectares of largely logged- over forests just north to Telupid. In 1997, the Sabah Government signed an agreement with TSH Resources Bhd., giving the company a tenure of 100 years to manage the Ulu Tungud F.R. The forest is to be managed according to internationally accepted standards such as the ITTO guidelines for sustainable forest management.

In the Ulu Tungud Forest Management Plan, 30,197 hectares have been designated for conservation purposes. This area is located within the Meliau Range (predominantly ultramafic forests) at the eastern part of the Reserve. A biodiversity and ecotourism survey was carried out within the Meliau Range. The survey was undertaken mainly by the Forest Research Centre (FRC) of the Sabah Forestry Department (SFD) with cooperation from Global Environment Centre (GEC) and TSH. It was kindly funded by the Keindaren Nature Conservation Fund (KNCF), Japan through GEC.

The Workshop

This workshop was jointly organized by SFD, GEC and TSH with funding from KNCF. The objectives were as follows: 1. To make public the findings from a biodiversity and ecotourism survey conducted at the unique heath forests of the Meliau Range in Ulu Tungud Forest Reserve from Phase 1 (2003-2004) of a collaborative project between SFD, TSH and GEC. 2. To exchange views and opinions, and to suggest recommendations for future plans for conservation of the study area. 3. To launch the 2nd Phase 2004-2005 of the project.

3 Participants of the Workshop

The Opening Ceremony was officiated by the Science & Technology Advisor to the Sabah Chief Minister, Y.Bhg. Datuk Tham Nyip Shen. It was also witnessed by YB En. Au Kam Wah, ADUN Elopura. Other distinguished guests were Datuk Jaswant Singh Kler (Chairman, TSH Forestry), Datuk Kelvin Tan (Managing Director, TSH), En. Faizal Parish (Director, GEC) and En. Sam Mannan (Director, SFD).

A total of 105 participants registered at the workshop from 21 agencies:

1. Sabah Forestry Department 2. TSH 3. Global Environment Centre (GEC) 4. Jabatan Perhutanan Semenanjung Malaysia 5. Forest Research Institute Malaysia (FRIM) 6. Environment Protection Department 7. Sabah Wildlife Department 8. Sabah Fisheries Department 9. Yayasan Sabah 10. Universiti Malaysia Sabah (International Forestry Faculty & Institute for Tropical Biology & Conservation) 11. Universiti Malaysia Sarawak 12. JICA/BBEC 13. PACOS 14. International Plant Genetic Resources Institute (IPGRI) 15. Sabah Timber Industry Association (STIA) 16. Sabah Forestry Industries (SFI) 17. Sapulut Forest 18. KTS 19. Bornion Timber 20. Whitenest 21. Prospect One

Representatives from the press:

1. Berita Harian 2. Post 3. Sabah Times 4. Merdeka Daily News (Chinese)

4 Workshop Programme

27 April, 2004 Opening Ceremony

8.00 am - Arrival of guests 8.30 am - Arrival of the Science & Technology Advisor to the Chief Minister, Y.Bhg. Datuk Tham Nyip Shen 8.35 am - Welcome Address by En. Sam Mannan, Director, Sabah Forestry Department 8.45 am - Speech by Y.Bhg. Datuk Jaswant Singh Kler, Chairman TSH Forestry Sdn. Bhd. 8.55 am - Speech by En. Faizal Parish, Director, Global Environment Centre 9.05 am - Officiating & Launching Speech by Y.Bhg. Datuk Tham Nyip Shen 9.20 am - Presentation of souvenirs 9.25 am - Tea reception

Session I (Overview papers) Chairperson: Deputy Director (Research & Development), Sabah Forestry Department

9.45 a.m. Current status of forest biodiversity in Sabah and the role of the Forestry Department, by Anuar Muhammad (SFD)

10.10 am Overview of Ulu Tungud Forest Reserve and its management, by Tay Soon Poh (TSH)

10.35 am Significance of biodiversity conservation in Ulu Tungud, by Faizal Parish (GEC)

Session II (Presentation of research findings from the survey) Chairperson: Chairman, TSH

11.00 am Forest description of the Meliau Range, Ulu Tungud, Sabah, by Reuben Nilus & Robert Ong (SFD)

11.20 am Plant diversity of the Meliau Range, Ulu Tungud, Sabah, by John Sugau (SFD)

Assessment of biodiversity at Ulu Tungud by using insects as indicators, by Dr 11.40 am Chey Vun Khen (SFD)

Diversity of beetles (Coleoptera) at the Sg. Meliau area, Ulu Tungud, Sabah, by 12.00 noon Dr Arthur Y. C. Chung (SFD

12.20 pm Aquatic diversity of Sg. Meliau, Ulu Tungud, Sabah, by David Lee & Azli Abu Bakar (GEC)

12.40 pm Evaluation for ecotourism development in support of biodiversity conservation of Meliau Range, Ulu Tungud, Sabah, by Martin Paul Vogel (SFD)

Lunch 1.00 pm Side event

2.00 pm The role of Institut Rimbawan Malaysia (IRIM) in biodiversity management, by Azmi Nordin (Forestry Dept. Peninsular Malaysia)

Session III (Discussion & recommendations) 5 Moderator: Director, GEC

2.20 pm Overall discussion on the conservation in Ulu Tungud Forest Reserve and recommendations for the future plans of the area

3.50 pm Concluding remarks

4.00 pm Tea reception

Dinner at the Sabah Hotel 7.30 pm Dinner for invited guests (SFD, TSH & GEC) and presenters ______28 April, 2004

7.00 am Field excursion (day trip) to the surveyed site in Ulu Tungud – TSH & SFD (some 30 people participated in this trip).

6 Appendix 1a Science & Technology Advisor’s Speech

Y.Bhg. Datuk Tham Nyip Shen

To officiate the Workshop on Conservation of Biodiversity in Ulu Tungud Forest Reserve, Sabah & Launching of the 2nd Phase at Forestry HQ, Sandakan on 27th April, 2004

Y.Bhg. Datuk Jaswant Singh Kler, Chairman, TSH Forestry Sdn. Bhd., Y.Bhg. Datuk Kelvin Tan, Group Managing Director, TSH Forestry Sdn. Bhd., Yang Dihormati En. Faisal Parish, Director, Global Environment Centre, Yang Dihormati En. Sam Mannan, Director, Sabah Forestry Department, Distinguished guests from various government, non-government agencies and the private sector, And all the participants of the workshop.

Good morning ladies & gentlemen.

It is indeed a great pleasure for me to be here this morning to officiate this workshop on Conservation of Biodiversity in Ulu Tungud Forest Reserve, Sabah. The importance of biodiversity and the effort in conserving biodiversity are not new in Sabah. This state is known for its rich natural resources and it is located within one of the twelve mega-biodiversity countries in the world. Thus, the high biodiversity in Sabah is among our greatest assets and heritage that we should continue to protect, conserve and manage in a sustainable manner. Such rich biodiversity in the tropical rainforests can be sustainably utilized to generate income for the State. Biotechnology, for example, is given much emphasis now and it is very much related to biodiversity. In the broad definition, biotechnology is using living organisms or their products for commercial purposes. Thus, there are a lot of potentials in Sabah for biotechnology given our rich biodiversity. However, we have to work hard in order to fully understand the biodiversity and its utilization for biotechnology. It could be in the field of herbal industries, pharmaceuticals, cosmetics and transgenic trees, just to name a few. Besides biotechnology, nature tourism is another field that can generate much economic benefit to the State. We are blessed with many fascinating flora and fauna, and spectacular places of interest which many other countries envy. Tourists from all over the world come to Sabah to see the natural beauty of Mt. Kinabalu, Danum rainforest and Sipadan Island. That is why Sabah is known for biologically rich from mountain top to ocean deep. Many of the flora and fauna such as some pitcher plants, orchids, rafflesias, orang utans, proboscis monkeys and tembadaus are endemic to this region. So, much can be obtained from the forest and its rich biodiversity, provided that it is used in a sustainable way.

Ladies and gentlemen,

The examples that I have highlighted, are from the economic or commercial point of view. In the broader perspective, biodiversity in the forests is important in the ecological functions of the ecosystem, including the maintenance and protection of watersheds and soil, the regulation of climate and habitat for wild plant and animal species. It is also essential in subsistence values, including the provision of foods, fibres, medicines and other products that are consumed outside of a market economy. Thus, the contribution of biodiversity towards mankind is enormous.

Ladies and gentlemen,

Realizing the significance of biodiversity in Sabah, various efforts have been initiated by the government, non-government and private agencies to conserve the environment and also to create an awareness among the public. I am glad that the Forestry Department together with TSH Sdn. Bhd. and the Global Environment Centre have taken effort to explore and document the biodiversity in the ultramafic forests of the Ulu Tungud Forest Reserve. As the Forest Management Unit (FMU) holder for Ulu Tungud Forest Reserve, TSH has taken the lead in heeding the government’s advice on conservation of biodiversity. I have been informed that not much has been documented previously from this area. Thus, the research findings to be presented in this workshop will serve as important basic information for further research and biodiversity potentials in this area. I also thank the Keindaren Nature Conservation Fund, Japan, who has generously contributed the bulk

7 of the fund for the biodiversity survey reported in this workshop through the Global Environment Centre. This is a good example of a smart partnership among various agencies within Malaysia and with international assistance in the joint effort of biodiversity conservation.

At this juncture, I wish to reiterate the commitment of the State Government in the sustainable utilization and conservation of Sabah’s rich biological resources. The Sabah Biodiversity Centre, established under the Sabah Biodiversity Enactment 2000, which has been partially operational during the last two years is expected to be fully functional in the near future. When the Sabah Biodiversity Enactment is fully enforced, the management of the State’s biodiversity is expected to be optimized.

Lastly, I would like to congratulate all those who are involved in this biodiversity programme and I am sure that in the second phase, more interesting findings will be unveiled. I do hope that such effort will continue to strengthen the work on biodiversity conservation in Sabah. I wish you all a pleasant and productive workshop ahead, and also all the best in the implementation of the second phase.

Thank you very much.

8 Appendix 1b Sabah Forestry Department Director’s Speech

Workshop on Conservation of Biodiversity in Ulu Tungud Forest Reserve, Sabah & Launching of the 2nd Phase at Forestry HQ, Sandakan on 27th April, 2004

Good morning ladies & gentleman, especially to Y.Bhg. Datuk Tham Nyip Shen, Science & Technology Advisor to the Chief Minister, Y.Bhg. Datuk Jaswant Singh Kler, Chairman, TSH Forestry Sdn. Bhd., Y.Bhg. Datuk Kelvin Tan, Group Managing Director, TSH Forestry Sdn. Bhd., Yang Dihormati En. Faisal Parish, Director, Global Environment Centre, Distinguished guests from various government & non-government agencies, And all the participants of the workshop.

First of all, I would like to extend a very warm welcome to all of you, especially our guests from various agencies outside Sandakan to the Sabah Forestry Department Headquarters.

We are here this morning on the occasion of the Workshop on the Conservation of Biodiversity in Ulu Tungud Forest Reserve, Sabah. I thank you all for your presence and time to participate in this event.

Ladies and gentlemen,

About 9 months ago, on the 29th of July, 2003, we had the Signing Ceremony between TSH Resources Bhd., the Global Environment Centre and the Sabah Forestry Department to conduct studies on biodiversity in Ulu Tungud Forest Reserve, Sabah. This was witnessed by YB Datuk Maximus Ongkili himself. Today, we would be able to see and hear the research findings from the studies which were conducted mainly by the Forest Research Centre of the Sabah Forestry Department. The dissemination of such information is important in creating an awareness on conservation efforts in the rich tropical rainforests of Sabah. This workshop is also meant to provide a platform to exchange views and opinion, and to suggest recommendations for future plans in the effort for conservation of the study area.

Ladies and gentlemen,

Biodiversity has been much talked-about lately. Just last month, Malaysia hosted the seventh meeting of the Conference of Parties (COP-7) of the Convention on Biological Diversity (CBD) in Kuala Lumpur. It was attended by thousands of participants from various countries throughout the world in an effort to discuss issues and implement policies on conservation of biodiversity. In Sabah, the Forestry Department is working hard towards the realization of sustainable forest resource management under the ITTO guidelines, and conservation of biodiversity is one of the criteria. All of us are working towards a sustainable and healthy environment, not only for ourselves but also for the future generations. Conservation of biodiversity is the way forward towards this achievement.

However, biodiversity conservation and management interacts with overall environmental management, so many issues are involved. One agency must take stock of overall developments, but different menus are needed. Conservation needs to be better understood. Many do not understand the fascinating biological richness and natural history that we have although we are one of the 12 megadiversity nations in the world. There are very few opportunities for environmental sciences and basic biological studies. Many agencies, be they government or private do not put much emphasis on biodiversity, understandably, as they cater to fields of demand. When the government and companies take the environment seriously, for example in this smart partnership between TSH, GEC and the Sabah Forestry Dept., there is gradually greater demand for information and programmes. For example, the rich and interesting biodiversity in the Sabah’s forests can be used to promote ecotourism, which would generate revenue for the State.

Engaging the private sector to work hand-in-hand with the government and other stakeholders in conducting biodiversity studies would be a crucial step in further understanding the rich biodiversity of various habitat types in the rainforests. I understand that the study area in the Ulu Tungud Forest Reserve focused on the conservation area within the Meliau Range. It comprises mainly ultramafic forests which are unique and

9 interesting. So far, not much has been documented for this kind of forests. Thus, the presentation of results from the survey would provide some invaluable information on the flora and fauna of the heath forests.

At this juncture, I congratulate TSH Resources Bhd., the Global Environment Centre (GEC) and the Forest Research Centre, Sabah Forestry Department in this collaborative project. I also thank the Keindaren Nature Conservation Fund (KNCF) of Japan who has kindly funded this biodiversity survey through GEC. I also wish all the participants a very fruitful workshop and I believe that your participation would contribute in one way or another towards a better, healthier and sustainable environment. May I also wish you success in the second phase of the project.

On that note, ladies and gentlemen, I thank you very much.

10 Appendix 1c TSH Resources Bhd Forestry Chairman’s Speech

Workshop on Conservation of Biodiversity in Ulu Tungud Forest Reserve, Sabah & Launching of the 2nd Phase at Forestry HQ, Sandakan on 27th April, 2004

Yg. Berusaha Pengerusi Majlis Yg. Berbahagia Datuk Tham Nyip Shen, Science Advisor to the Chief Minister, Sabah Yg. Berbahagia Pengarah Perhutanan Negeri Sabah Yg. Berbahagia Director of Global Environment Centre

1. Today’s workshop on Biodiversity is an important milestone for the Ulu Tungud Forest Reserve, as it marks the results of the joint-efforts and collaboration of Forest Department, GEC and TSH Resources Bhd. This tripartite effort of a Government Department, Environmental NGO and Public Corporation, to conduct basic research so as to provide better information for Forest Management, is in itself unique and a reflection of the approach that need to be taken where other stakeholders are included. The study also is a very important step towards the sustainable management of the natural resources and its rehabilitation and restoration.

2. TSH Resources Bhd is committed to making the Sustainaible Forest Management of Ulu Tungud a SUCCESS! We have worked very hard to ensure that all the three aspects of Sustainability are covered. Towards this end we had implemented various projects covering the three areas of economics, community and environment.

3. In the economic area we are currently undertaking reforestation and reafforestation activities by establishing 11,000 ha of Industrial Tree Plantations (ITP) in the logged-over and degraded forests with both fast growing and high value species. It is a RM48.5 million project for which funding had been SECURED in Year 2002 … this was 2 years ago!!!

4. We were “Gung Ho” and ready to go but our excitement in launching the Industrial Tree Plantations (ITP) soon petered out when we discovered that we had to comply with new environmental regulations. The EIA process took us 15 months!!!

5. After securing our EIA approval, the friendly skies of Sabah turned ugly and rain felled continuously with a record of 900 mm per month!

6. We are now 24 months behind time ---- we need to plant 5 million trees in the next 24 months. It’s a do or die effort… but with the support of the new Director of Forestry and the staff of Forestry Department we believed the Industrial Tree Plantations will not “DIE” but will completed by its target date!!!

7. At the same time, we are carrying out silvicultural treatment for the forests managed under the Natural Forest Management regime. Our aim is to ensure that the FMU will continue to be a sustainable source of timber for the State. We have also in the process of establishing downstream activities in the FMU to add value, reduce wastage and maximize the utilization of the wood resources. 8. For the local community, they are given priority for employment. We currently have over 100 youths employed directly under our checkroll. These youths are not only from Ansuan but also from other interior parts of Sabah like Entelibon, Tongod and Pinangah.

9. Besides employment, we had set aside petty contracts for members of the local community. They are involved in silviculture treatment, procurement of seeds and planting material, supply of bamboo stakes for lining, maintenance of plantations and planting.

10. We had also rebuilt a bridge across the Ansuan (to access Kg. Baba) and upgraded the open quadrangle in front of the Balai Raya in Kampong Baba.

11 11. For the environment, we had approached all our development work in a judicious manner emphasizing the care of the environment as a matter of top priority. To effect this approach, we found that it was necessary to sacrifice the areas earmarked for Industrial Tree Plantations in order to safeguard the environment by leaving more natural forests intact than what was originally planned for. This is done in order not to put to risk the steeper areas which block our access into the less steep areas which are suitable for Industrial Tree Plantations. As such we have effectively left many ITP compartments with huge chunks of the natural forests broken up only by patches of ITP.

12. We at TSH take cognizance of the fact that we are custodian of a treasure trove of Biodiversity in Ulu Tungud. Therefore we had always sought ways to conserve them for posterity. It is with this aim that these Biodiversity studies was initiated and today marks the end of the first phase of the project. We acknowledged that these studies represent only a small step in the greater scheme of things but we trust that these studies will be the catalyst for more and better things to come. With the GEC assistance, we will endeavour to scout for more funds to enable a more comprehensive and indepth research to be undertaken in this particular area.

13. We like to congratulate and extend our gratitude to our scientists at the FRCS who were able to come up with interesting findings and deepened our understanding of this unique ecosystem working under so many constraints. Therefore we at TSH would like to record our appreciation to them for a job well done.

14. We also like to thank GEC for their assistance in securing the funding for the work. We are happy to note that the work will be extended and this 2nd Phase is to be launched today by Yg. Berbahagia Datuk Tham Nyit Shen.

15. On behalf of TSH Resources Bhd. we would like to record our heartfelt appreciation to Yg. Berbahagia Datuk Tham for spending time with us and opening this workshop and launching the Second Phase of the Biodiversity Studies at the Meliau Range.

Thank you.

12 Appendix 1d Global Environment Centre Director’s Speech Speech for workshop on Biodiversity of Ulu Tungud, Sabah

Faizal Parish Director, Global Environment Centre

Y.Bhg. Datuk Tham Nyip Shen, Science & Technology Advisor to the Chief Minister, Y.Bhg. Au Kam Wah, Ahli Dewan Undangan Negeri, Elopura, Y.Bhg. Datuk Jaswant Singh Kler, Chairman, TSH Forestry Sabah Sdn. Bhd., Y.Bhg. Datuk Kelvin Tan, Group Managing Director, TSH Resources. Bhd., Yang Dihormati En. Sam Mannan, Director, Sabah Forestry Department,

Distinguished Guests, Participants to the workshop from various government, non-government agencies and the private sector,

Ladies and Gentlemen,

On behalf of the Global Environment Centre, I am very happy to make these remarks at the opening of the Workshop on the Conservation of Biodiversity of Ulu Tungud Forest Reserve, Sabah.

The Global Environment Centre is an international non-profit organisation based in Malaysia but operating at local, regional and global scales. We have three main programmes: x Wetland and Forest Conservation Including assessment of biodiversity at Ulu Tungud and the ASEAN Peatland Management Initiaitive x Integrated river basin management Including a national programme on Community Participation in River Management and the global River Basin Initiaitive x Awareness and capacity building Including training on forest fire prevention and various awareness programmes.

We have a particular focus on biodiversity, climate change and water resources.

Our activities incorporate a number of key approaches: x Multi-stakeholder partnerships x Integrated planning and implementation x Involvement of local communities x Generates local as well as global environmental benefits

The collaborative work at Ulu Tungud meets all of these criteria – x we are working in partnership with the private sector, state government, research institutions and NGOs. x We are endeavouring to facilitate integrated planning and implementation for conservation of biodiversity and sustainable forest management. x We are assessing options to involve local communities in protection and sustainable use of resources particularly non-timber forest products and aquatic resources as well as ecotourism, particularly in the next phase of the work x We believe that the project will generate local ( such as safeguarding the watersheds of key rivers, improving availability of aquatic resources, developing options for ecotourism and NTFPs) as well as global environment benefits – such as biodiversity conservation and reduction of GHG emissions.

We are very happy to note the progress which has been made since 29th July 2003 when the project was launched. Today we will have a chance to assess the results and suggest the priorities for future action.

We are all facing a challenge to ensure the conservation of our unique biodiversity, while facilitating sustainable development for local partners. With the collaborative work at Ulu Tungud we have the potential to create a model of global significance for a “Smart Partnership” between the government, non-government and private sector.

13 I am happy to note that Dato Jaswant Singh in his statement this morning indicated that TSH has three main objectives for its work in Ulu Tungud: economic development, community partnership and environmental protection. This is a good example for other private sector groups.

I hope that during the course of the day we all get a better understanding of the outputs from the first year’s activities as well as an understanding of issues related to these three areas. Based on this we hope that you can all contribute to the development of a common vision for future action in Ulu Tungud Forest Reserve related to biodiversity conservation..

Finally I would like to thank all those involved in the project and in the arrangements for today’s workshop – namely the Sabah State Government, The Sabah Forest Department, The Forest Research Centre, TSH Resources Berhad and the Keidanren Nature Conservation Fund (KNCF).

Thank You

14 Appendix 2a Overview paper (Sabah Forestry Department)

CURRENT STATUS OF FOREST BIODIVERSITY IN SABAH AND THE ROLE OF THE FORESTRY DEPARTMENT

Compiled by Anuar Mohammad, Lee Ying Fah & Arthur Y. C. Chung Forest Research Centre, Forestry Department, P. O. Box 1407, 90715 Sandakan, Sabah

1. BIODIVERSITY: PRESENT SCENARIO

Biodiversity is an abbreviation of biological diversity, referring to the variety and complexity of life in this planet. To date, scientists have identified some 1.75 million species. Estimates for the total number of species on earth range from three to 100 million (Anon. 2004). In combining life forms and their interactions with the environment making the earth habitable, biodiversity provides a wide range of goods and services that sustain human life. Biodiversity is extremely rich in tropical rainforests. Forest biodiversity is not about timber alone but it is far more than that. Alston (1972) summarized the goods and services provided by forests as follows:

Fish & wildlife Outdoor recreation Range (forage) Environmental amenities Soil & watershed Timber

The conservation and utilization of biological diversity is a major global political, social and scientific concern that has attracted almost unparalleled public interest worldwide. Biodiversity studies have proliferated in recent years, focusing on the importance of forests for the conservation of biodiversity and more broadly for human welfare and for the maintenance of complex processes affecting climate change. Deforestation and forest fragmentation cause prime concerns in conservation and biological communities. To a very large extent, it is tropical forests that are the most species-rich habitat on earth and that is why the loss of tropical rainforests has attracted the greatest attention. Rising human aspirations, expanding populations and socio-economic development, are the factors in the continuation of tropical deforestation. Thus, the conservation of biodiversity would increasingly need greater attention and action. Successful management will depend on many factors, but an important one has to be biological knowledge of an ecosystem and its component species, and how these organisms respond to intervention practices and other forms of disturbances.

Biodiversity and conservation have been much talked-about lately. In early 2004, Malaysia hosted the seventh meeting of the Conference of Parties (COP-7) of the Convention on Biological Diversity (CBD) in Kuala Lumpur. It was attended by thousands of participants from more than 120 countries throughout the world in an effort to discuss issues and implement policies on the conservation of biodiversity. The Kuala Lumpur Declaration was adopted, which commits to a rapid and effective implementation of measures aimed at reducing biodiversity loss. The delegates unanimously agreed on the declaration, with emphasis on setting up a network of protected areas, both marine and terrestrial. The declaration also called for:

COMMITMENT to develop an effective international regime on access and benefit sharing and to support relevant capacity building;

REVIEWING the Millennium Ecosystem Assessment this year and setting-up a mechanism for a continuing scientific assessment of the convention;

STRENGTHENING of the partnership between the public and private sectors to promote benefit sharing, transfer of environmentally sound technology and provide adequate financial resources;

REMOVAL of barriers in the exchange of key technologies for the implementation of the convention;

15 COMMITMENT to develop a regional centre of excellence to assist developing countries in exchanging experiences; and

RE-AFFIRMATION of the significance of the role of indigenous and local communities in the conservation and sustainable use of biological resources.

2. BORNEAN SABAH AND ITS RICH BIODIVERSITY

Borneo, the third largest island in the world, is situated within the Malaysia-Indonesia archipelago. This region contains one of the richest tropical rainforest habitats (Whitmore 1990). The flora in this region is exceedingly rich and is conservatively estimated to comprise 25,000 species of flowering plants (van Steenis 1971) which is about 10% of the world’s flora. The conducive paleoclimates during the Tertiary (2-65 million years ago) and Quaternary (up to 2 million years ago) periods might have contributed to the high diversity of plants and animals (Morley & Flenley 1987). The variety of habitat types today such as dipterocarp forests, freshwater swamp forests, mangroves, etc. increases this biodiversity (Andau 1998). Borneo covers less than 0.2% of the earth’s land surface and yet one in twenty-five of all known plants are found here as well as one- twentieth of all known birds and mammals (MacKinnon et al. 1996). The island is important both for species richness and endemism.

Sabah, the second largest Malaysian state in northern Borneo, is recognized as one of the 12 mega biodiversity hot spots in the world and a fifth of the Bornean biodiversity is located here, which is considered the highest in terms of species diversity, richness and distribution. Such high diversity is due to the vast stratification and diverse climatic factors as a result of the varied elevation and edaphic factors of Sabah. The pristine tropical rainforests in Sabah are biologically rich with some 10,000 species of flowering plants, 449 species of birds, 189 species of mammals, 89 species of amphibians and a multitude of other plant and animal species (Rajaratnam 1997; Andau 1998). It has 174 (65%) of 267 species of dipterocarps found in Borneo, more than half of all Bornean rhododendrons and pitcher plant species, and perhaps as many as 1,500 of some 2,000 Bornean orchids (Wong 1992). Sabah’s forests are home to many protected rare mammals such as the orang-utan, proboscis monkey and the Sumatran rhinoceros. There are still surprises even among large and well-known wild mammals of Sabah. The second barking deer species was not reported until ten years ago and recently, a new genus of rodent was recorded (Stuebing 1992).

3. PRESENT TREND IN SABAH THAT AFFECTS ITS BIODIVERSITY

Sabah has a land area of 7.3 million ha and a population of 2.86 million (DSMS 2004). It has been estimated that the population growth rate in Sabah from 1991 to 2006 is 185% and it is the highest compared to 144% on average for the whole of Malaysia (Mustafa & Kusano 2003). The increasing pressure exerted by the human population may result in an accelerating decline in the State’s biodiversity. Land use pattern comprising the primary industry sector has changed significantly in Sabah. Percentage of forested areas in Sabah has decreased from 82.4% in 1972 to 60.2% in 1999, whereas oil palm plantations increased 13 times in the last 22 years. The areas planted with oil palm occupied 12.8% of the State in 1999 (Mustafa & Kusano 2003). The oil palm industry supports the top share of the primary industry sector in the GDP of Sabah, while contribution from the timber industry to the State revenue decreased from 52% in 1984 to 18% in 2002 (SFD 2002). Tourism industry, on the other hand, is one of the fastest growing sectors in Malaysia, especially in Sabah. These conditions demand wise use of natural resources and for sustainable development, taking into consideration the need for biodiversity and ecosystem conservation.

4. POLICIES AND LEGISLATION RELATED TO BIODIVERSITY CONSERVATION IN SABAH

To safeguard the biodiversity in Sabah, the Sabah Biodiversity Enactment 2000 was enacted. The Sabah Biodiversity Centre was established, presently placed under the Sabah Forestry Department with its functions to provide the Government with accurate information on biodiversity matters, determining policies and guidelines for scientific research related to access and use of biological resources, establishing access and benefit-sharing mechanisms to safeguard the intellectual property rights of the indigenous and local communities, establishing linkages among the relevant institutions within or outside the Sate for the enhancement of conservation and management of the biological resources of the State (SKN 2002).

16 Apart from the Sabah Biodiversity Enactment, there are various other enactments related to biodiversity in Sabah as listed below (SKN 2002). The aim is also indirectly in line with safeguarding the biodiversity and its benefits in the State.

1. Forest Enactment 1968, amendments and other Forest Rules 2. Parks Enactments 1984 and amendments 3. Conservation of Environment Enactment 1996, amendments and related rules 4. Wildlife Conservation Enactment 1997, Wildlife Regulations 1998 5. Cultural Heritage (Conservation) Enactment 1997 6. Sabah Water Resources Enactment 1998

5. AGENCIES INVOLVED IN BIODIVERSITY CONSERVATION IN SABAH

The richness of Sabah’s biodiversity is the State’s invaluable commodity and asset. Consequently, Sabah has a long tradition of practising sound conservation science and practical skills for tropical forest management, and continues to play a leading role in this field. Various governmental and non-governmental organizations and the private sector in Sabah are actively involved in biodiversity conservation. Biodiversity is a global issue, thus it attracts international collaboration and cooperation on this matter. Among the prominent efforts in Sabah is the Bornean Biodiversity and Ecosystems Conservation (BBEC) programme, headed by the State Secretary of Sabah. The programme is a collaboration of 10 State agencies and the Institute of Tropical Biology and Conservation (ITBC) of Universiti Malaysia Sabah (UMS) with Japan International Cooperation Agency (JICA). Forestry Department is a participating agency in all the four components of the BBEC programme, namely: research and education, parks management, habitat management and public awareness. Among other State government agencies which are also involved in biodiversity activities are: Sabah Parks, Wildlife Department, Environmental Protection Department, Sabah Foundation, Sabah Museum, Agriculture Department, Fisheries Department, Science & Technology Unit in the Chief Minister’s Department and the Education Department. The non-governmental agencies include WWF Malaysia, Sabah Society, Malaysian Nature Society and the Sabah Environmental Protection Agency (SEPA), just to name a few.

6. ROLE OF FORESTRY DEPARTMENT IN BIODIVERSITY CONSERVATION

6.1. Vision and strategic thrusts

Approximately 60% of the land area in Sabah is forested (including parks, forest plantations and others), thus the role of the Sabah Forestry Department as the custodian of Sabah’s forest resources is indeed challenging. The classification of forested areas is shown in Table 1. The Department strives to excel in forest management with its vision towards the realization of sustainable forest resource management. Biodiversity conservation is in line with sustainable forest management, in which the Department places its emphasis on the following strategic thrusts:

To ensure that the management and development of Sabah’s forest reserves are in accordance with sustainable forestry principles;

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

To enhance the efficiency of the forestry industry in forest resource utilization, while ensuring that the processing capacity of the industry corresponds to the long term productive capacity of the forest resource;

To intensify efforts in research and education towards sustainable forest management; and

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

Table 1: Classification of forested areas in Sabah, Malaysia (Sabah Forestry Department 2003)

No. Forest types Class Area (ha) 1. Forest Reserve - Protection I 342,150 - Commercial II 2,683,480 - Domestic III 7,355

17 - Amenity IV 20,940 - Mangrove V 316,024 - Virgin Jungle VI 91,914 - Wildlife VII 132,653 Total 3,594,516

2. Plantation forests 150,492 3. Parks (under Sabah Parks) 245,172 4. Other forested areas (State land, forests allocated for 429,820 plantation forests, rehabilitated forests) Grand total 4,420,000

6.2. Strategies of the Forestry Department on biodiversity conservation in sustainable forest management

Numerous strategies have been identified to address current forestry issues based on the ITTO Year 2000 objective on sustainable forest management (SFD 2002). Many of these strategies directly or indirectly contribute towards biodiversity conservation. Some of these strategies are as follows:

1. The Permanent Forest Estate (PFE) x Declare sufficient areas to be included in the PFE. x Ensure that no part of the PFE is degazetted except under extreme circumstances, in which case the excised area should be replaced. x Identify State land areas which are suitable for inclusion into the PFE.

2. Sustainable Forest Management (SFM) x Ensure that forestry planning follows the 3-tiered approach as show in Table 2:

Table 2: Forestry planning under SFM.

Management Level Planning Period Main Components Forestry Sector 10 – 20 years 1. Forestry sector plan 2. Forest Policy 3. Legislation Forest Management Unit 5 – 10 years 4. Forest Zoning 5. Resource inventory 6. Output Control Compartment Annual 7.Harvesting and Silviculture 8. Non-timber forest products 9. Resource Accounting

x Place the PFE under SFM in line with ITTO’s Year 2000 Objective, so that the socioeconomic and environmental benefits from the forests are maintained in perpetuity. x Extend the Deramakot forest management planning model to all the other Commercial Forest Reserves in Sabah. x Implement SFM in all forest management units, each of which should comprise at least 100,000 ha of commercial forest. x Ensure that the management plans for all FMUs are completed with the appropriate prescriptions for field implementation.

3. Licensing Permanent Forest Estate x In implementing SFM, the Government issues long-term license agreements in accordance with Section 15(1) of the Forest Enactment 1968. This agreement will require the licensee to manage the FMU for a period of 100 years according to the stipulated conditions, some of which are related to biodiversity conservation: x Employ environmentally friendly harvesting methods such as reduced-impact-logging (RIL) and skyline yarding. x Carry out silviculture and enrichment planting as required. x Employ professional foresters with experience.

18 4. Forest production and revenue x Promote efficient production through systematic management planning, and resource development so as to reduce damage to the forest environment. x Ensure the optimal use of forest resources by encouraging proper and systematic harvesting and log production. x Ensure that forest revenue corresponds to the production capacity of the forest resources so as to contribute towards sustainable socio-economic development.

5. Enforcement and legislation x Ensure that the Forest Enactment 1968 and the Forest Rules 1969 are constantly updated and fully enforced to support the successful implementation of sustainable forest management.

6. Protection Take a proactive approach in the protection of the State’s Permanent Forest Estate, such as to:- x Demarcate forest reserve boundaries on the ground. x Take urgent steps to upgrade the capability of the Department in forest fire prevention and control, with emphasis on preventive measures. x Curb illegal shifting cultivation activities in forest reserves and relocate those involved parties to areas designated for community forestry programmes. x Promote the voluntary practice of forest protection and conservation by private land owners. x Take punitive actions against illegal loggers.

7. Forest resource development x Encourage licensees to conduct forest rehabilitation in logged areas as required under the SFM license agreement. x Intensify rehabilitation measures in forest reserve of low productivity through enrichment planting and appropriate silvicultural treatment. On poor and degraded forest areas, plantation forestry should be introduced.

8. The role of relevant government agencies The Forestry Department has to foster close cooperation with relevant local and national government agencies in order that all the State’s forest development plans can be carried out effectively, most importantly in the following aspects: x Environmental conservation. x Integrated land development. x Forest rehabilitation programme. x Wildlife management and conservation. x Research and conservation of biodiversity. x Law enforcement.

9. Private sector participation x Promote the participation of the private sector in the implementation of sustainable forest management by providing appropriate incentives. x Assist and guide the private sector, especially the Sustainable Forest Management License Agreement holders so that they may play a more important role in the development of the forestry sector. x Assist the private sector in preparing themselves for the implementation of sustainable forest management.

10. Non-government organization (NGOs) x Enhance the credibility of the Department’s programmes and activities through the participation of NGOs. x Encourage the participation of NGOs in the implementation of sustainable forest management through consultancies and committees. x Organize forums to discuss and resolve current issues.

11. International forestry cooperation x Continue efforts towards sustainable forest management by seeking technical advice and guidance from the relevant international agencies. x Identify future cooperation, in line with the Department’s goals and objectives.

19 x Seek financial assistance from foreign sources for forestry research and development.

12. Community forestry x Review programmes of community forestry projects to ensure that they are in line with traditional community forestry concepts. x Identify village communities living within the forest reserves, through socio-economic studies, to ensure that local community needs are addressed in the preparation of forest management plans. x Ensure that allocations from the Community Forestry Development Fund are used for the implementation of activities recommended in forest management plans. x Foster close cooperation with other government agencies in relation to providing basic amenities for village communities.

13. Forestry research and development x Review existing research programmes so as to ensure that they contribute towards the implementation of sustainable forest management. x Enhance research related activities to the conservation of the environment, biodiversity and non- wood forest resources; and x Encourage the participation of the private sector in forestry research.

14. Ecotourism x Identify potential areas for outdoor recreation and nature tourism. x Provide recreational amenities and eco-tourism facilities throughout the state. x Formulate appropriate policies to support eco-tourism development in forest reserves. x Ensure that eco-tourism development in forest reserves is in line with the principles of sustainable forest use.

6.3. Forestry research in biodiversity conservation

Research and development is an important component in supporting the implementation of biodiversity conservation in sustainable forest management. The Forest Research Centre (FRC), under the State Forestry Department, endeavours to be a centre of excellence in tropical forestry research, with its mission, to further develop and apply knowledge and technology to support conservation, management, development and sustainable utilization of the forest resources of Sabah through scientific research.

The Deputy Director (Research) of Sabah Forestry Department heads the Centre, managing research programmes and activities conducted by more than 30 researchers. The programmes that have been identified to be priority research areas to be undertaken within the five-year period (2001-2005) are:

1. Natural forest management 2. Plantation silviculture 3. Utilisation of forest products 4. Tree breeding & seed source establishment 5. Soil & watershed 6. Pests & diseases 7. Plant diversity 8. Insect diversity 9. Tourism 10. Biotechnology 11. Phytochemistry

The programmes in bold are very much related to biodiversity conservation and its utilization. Various projects are undertaken in each programme and many involve cooperation with both local (e.g. UPM, UMS & FRIM) and foreign agencies (e.g. Kyoto University, Leiden’s Herbarium & Natural History Museum, London)

The Sabah Biodiversity Centre which is based at the Forest Research Centre oversees the biodiversity activities and research in Sabah. The current activities of the Sabah Biodiversity Centre are: x Development of a holistic and prudent biodiversity management strategy and its sustainable and optimum utilization in Sabah.

20 x Development of a database and information system of all exhibits, published and written records regarding the use, cultivation and management of biological resources of the State. x Promoting education and knowledge of biodiversity in Sabah. x Promoting the identification of new natural and biotechnological products derived from the biodiversity and biological resources of the State.

Other activities at the Forest Research Centre which contribute towards biodiversity conservation are:

(i). Development and management of scientific reference collection facilities

Herbarium The herbarium is the centre of botanical reference for various researchers and students. Presently, the herbarium houses about 10,000 plant species from more than 240,000 specimens. A database known as Botanical Research and Herbarium Management System (BRAHMS) is used to store and organize the collection systematically.

Entomological museum collection The museum is the centre of reference for various entomologists and students, either from local or foreign institutions. The insect museum currently houses more than 110,000 mounted specimens with more than 10,000 identified species.

Wood library (xylarium) A reference collection of wood samples. At this stage, the collection houses more than 1,074 species from 5,451 samples. It is maintained in a database known as the Wood Collection Management System (WOCOM)

Arboretum Established in 1971, it has a living collection of indigenous trees, promoting ex situ conservation of plant diversity in Sabah.

Ethnobotanical garden Newly established in 1999, various species of medicinal plants have been planted for research and conservation purposes.

(ii). Environmental education

Environmental education is a vital tool to bring about positive changes in the attitude and behaviour of the public towards the forests and biodiversity conservation. This is in line with the concept of sustainable forest management that includes the change of attitude concerning the ecological and social functions of forests. Thus, an environmental education programme was developed in 1996, targeting school students, teachers and the public. Its main objective is to raise the level of awareness in the target groups on the importance of the rain forest and its conservation, followed by infusion of sustainable forest development concepts in certain activities.

7. CONCLUSION Biodiversity conservation and sustainable forest management go hand-in-hand. Thus, in sustainable forest management, conservation of biodiversity is a very important element and it is the way forward. Forest and biodiversity are for people, but the people must have responsibilities if the forest and its biodiversity are to continue to truly be a source of life. Protecting the forest means conserving its biodiversity, not only for our generation but for many more generations to come.

REFERENCES

Andau, M. 1998. Biodiversity in the context of Sabah’s wildlife. Paper presented at the State Level Seminar on National Policy on Biological Diversity in Kota Kinabalu, Sabah, Malaysia. 6 August, 1998.

Anon. 2004. COP7/MOP1 in Malaysia. Warta MASTIC. Jan.-Apr., 2004. Ministry of Science, Technology and the Environment, Malaysia.

21 Alston, R.M. 1972. FOREST – goods and decision making in the forest service. USDA Forest Service Research Paper INT-128.

DSMS (Dept. of Statistics Malaysia, Sabah). 2004. Buletin perangkaan bulanan Sabah. Januari, 2004. Jabatan Perangkaan Malaysia Cawangan Sabah.

MacKinnon, K., Hatta, G., Halim, H. & Mangalik, A. 1996. The ecology of Kalimantan. Periplus Editions Ltd., Hong Kong.

Morley, R.J. & Flenly, J.R. 1987. Late cainozoic vegetation and environmental changes in the Malay Archipelago. In T.C. Whitmore (ed.). Biogeographical evolution of the Malay Archipelago. Clarendon Press, Oxford. Pp. 50-59.

Mustafa, K.Y. & Kusano, T. 2003. Towards nature conservation together – progress of BBEC Programme. Sabah State Government, UMS & JICA.

Rajaratnam, R. 1997. Sabah Biodiversity Conservation Project, Malaysia: identification of potential protected areas component, estate surveys, June-August, 1996. Ministry of Tourism and Environmental Development, Sabah, Malaysia. Report presented at the Workshop on Forests in Plantations, Sabah. 9 October, 1997.

SKN (Setiausaha Kerajaan Negeri). 2002. A strategic plan for the management of biodiversity and development of biotechnology in Sabah. Paper presented at the Meeting of the Technical Committee, Ministry of Science, Technology and Environment, Putrajaya. 21 May, 2002.

SFD. 2002. Annual Report. Sabah Forestry Department.

Stuebing, R.B. 1992. Ecology and biodiversity in Sabah. In The environment – the future is in our hands. Intan Junior Chamber, Sabah. Pp. 22-25.

Van Steenis, C.G.G.J. 1971. Plant conservation in Malaysia. Bull. Jard. Bot. Nat. Belg. 41: 189-202.

Whitmore, T.C. 1990. An introduction to tropical rainforests. Oxford University Press, Oxford, U.K.

Wong, K.M. 1992. Rafflesias, anyone? Sabah’s plant life: a new look at a priceless wonder. In The environment – the future is in our hands. Intan Junior Chamber, Sabah. Pp. 26-30.

22 Appendix 2b: Presentation By TSH Resources Bhd

LOCATION

SUSTAINABLE FOREST MANAGEMENT

ULU TUNGUD FOREST RESERVE

MELIEU RANGE –SATELLITE ULU TUNGUD F.R. IMAGE

Sugut River Melieu Mt Kinabalu Range

FMU Base Camp Labuk River

VISION FOREST LAND USE

A MULTIPLE-USE FOREST ¾ENVIRONMENTALLY FRIENDLY ¾SUSTAINABLE ¾ECONOMICALLY VIABLE ¾BENEFITS LOCAL ECONOMY ¾PROVIDES STABLE LOCAL EMPLOYMENT ¾ENHANCE STAKEHOLDER VALUE

23 FOREST LAND USE STRATEGY

CONSERVATION 30,197 HA FOREST SECURITY Demarcation of external boundaries Signboards & Notices NATURAL FOREST 47,652 HA MANAGEMENT

FOREST 45,730 HA PLANTATIONS

FOREST SECURITY FOREST SECURITY

• Taking full control of area in May 2000 • Establishment of Basecamp in 2001 Estbn. Of Basecamp • Signboards & Notices Security Gate to control access • Surveillance & patrols since 1998 • Presently 2 teams of 5 men each patrolling the boundaries in Toyota Hi-Lux • Helicopter patrols – at least once per Qtr Regular Patrols Communications via Satellite Phone

STRATEGY STRATEGY

• Forest productivity – • Forest productivity – rehabilitate logged- rehabilitate logged- over forests over forests (Natural Forest (Natural Forest Management) Enrichment Planting Management) Enrichment Planting

CENSUS & TAGGING NATURAL Seedlings for SilviculturalPreparing planting lines Seedlings for REGENERATION Silvicultural Treatment enrichment planting enrichment planting

24 Reforestation with the STRATEGY establishment of ITP Forest productivity- reforestation with the establishment of Industrial Tree Plantation Bud Grafting of Rubber PBIGEnrichment Rubber PlantingSeedlings PBIGEnrichment Rubber PlantingSeedlings Budwood

Establishment of Teak PlantationSeedlingsEstbn of forRubber SeedlingsEstbn of forRubber SilviculturalTeak Scion Treatment Garden enrichmentForests planting Preparation of Rubber enrichmentForestsRUBBER planting FORESTS Seedlings

Reforestation with the establishment of ITP

Acacia mangium seedlings` PBIGEnrichment Rubber PlantingSeedlings RUBBER FORESTS RUBBER PLANTATION 1½ YEAR Newly planted A. mangium SeedlingsEstbn of forRubber enrichmentForestsBINUANGRUBBER planting FORESTS

Forest Productivity

• Enrichment Planting (Review) – carried out throughout the FMU >100,000 seedlings planted Acacia mangium seedlings` NEWLY PLANTEDPBIGEnrichment Rubber PlantingSeedlings • Silviculture treatment – >5,000 HA ACACIA MANGIUM TREATED • Establishment Forest Plantations – 11,000 PLANTATIONS ha (Funding secured – RM 48.5 million) Newly planted A. mangium SeedlingsEstbn of forRubber enrichmentForestsBINUANGRUBBER planting FORESTS

25 STRATEGY

• Forest environment – “green” practices 11,000 ha of “GREEN”

Industrial Tree Estbn of Riparian Plantations Reserve By 2006 Zero Burning

Riparian Reserve

“GREEN PRACTICES” CONSERVATION

• 30,000 HA SET ASIDE TO PROTECT UNIQUE HABITAT & STEEP LAND RESERVE ENDEMIC SPECIES Gymnostoma sumatrana Estbn of Riparian Reserve RIPARIAN RESERVE

Zero Burnin ZERO BURNING - NEPHENTES DEBRIS Durian hutan Riparian Reserve

Forest Environment SPECIAL EIA ON FOREST Assessment of Biodiversity at Gunong Melieu MANAGEMENT IN ¾ Funding secured from Japan through Global Environment ULU TUNGUD FOREST RESERVE Center for Phase 1

¾ Phase 1 launched on 29th July APPROVED BY 2003 & witnessed by Y.B. Datuk Dr. Maximus Ongkili, Science & Technology ENVIRONMENT PROTECTION Advisor to the Chief Minister DEPARTMENT ¾ This workshop marked the completion of Phase 1

ON ¾ Funding secured for Phase 2 16th OCTOBER 2003

26 Community Participation Community benefits

• Employment - Managerial & Technical x 5 - Supervisory x 30 - Labour (Sabahans) x 65

• Petty Contracts (RM 5 Million) RREECCRREEAATTIOIONN EMPLOYMENT - Enrichment planting & maintenance - Silviculture treatment - Planting & maintenance - Nursery work (rubber & other species) - Survey of compartment boundaries - Preparation of Harvesting & Planting Plans

FORESTS – A PLACE TO JOBS & FIND SUSTENANCE CONTRACTS

Community Benefits Forest Utilization

Optimization of wood resources

UPGRADING OF KG ROADS UP TO 4 KM

GRAVELLING THE QUADRANGLE OF “MINI” SAWMILL BALAI RAYA BRIDGE OVER KG. BABA BABA RIVER WITH 2 BAND SAWS

MAIN SAWMILL WIN-WIN RELATIONSHIPS

• Forest Department HQ – Open Doors • Forest Department, DFO – Monthly Joint Operations Meeting • Forest Research Center, Sepilok – Expertise, Advice, Seeds, Seedlings • UMS – Fellowship programme for post graduates • LGM – Rubber trial plots

27 CONCLUSION

PHASE 1 (1998 to 2001) Establishing TSH presence in the FMU

PHASE 2 (2002 to 3Q of 2003) Laying the foundation

PHASE 3 (From 3Q of 2003 & beyond) Acceleration of reforestation & silvicultural work in the FMU

28 Appendix 2c: Presentation By Global Environment Centre

Presentation Significance of Biodiversity Conservation in the Meliau „ Ulu Tungud and the Meliau range Range, Ulu Tungud, Sabah „ Project partners, objectives and activities „ Benefits of biodiversity Faizal Parish, „ Risks and threats Global Environment Centre „ Options and Recommendations „ Future actions Workshop on Conservation of the Biodiversity in Ulu Tungud forest Reserve, Sabah 27 April 2004

Ulu Tungud Forest Reserve Heath forest of Meliau Range

Study site 30,000 ha

Gunung Meliau RIVERS FLOWING INTO LABUK RIVER FROM THE Gunung Meliau MELIAU RANGE

• Padau Lawan River • Matapatan River • Padau Madau River • Pinianakan River

• Meliau River • Samang River • Maralabu River • Ensuon River • Labuk River

29 Characteristics

„ Conservation area proposed as part of FMU 4 Management Plan approved in December 1999. „ Covers over 20,000 ha within the concession of 124,000. „ Steep hills – highest peak is Gng Meliau about 4300 feet. „ Ultramafic soils – poor nutrient availability „ Specialised vegetation – Upland Heath Forest „ Potential for unique biodiversity

Heath forest

Assessment

30 Partners Objectives

„ Global Environment Centre „ Assess the biodiversity and values of the Meliau „ International NGO - global environment issues Range Conservation Area in Ulu Tungud Forest „ TSH Resources Bhd Reserve „ Manager of Ulu Tungud FMU „ Build capacity of stakeholders for future „ Forest Research Centre, Sabah management of the area „ Centre of expertise on forest biodiversity management of the area assessment „ Keidanren Nature Conservation Fund „ Grant scheme of Japanese Business Federation „ Supports biodiversity work around the world

Activities 2003-4 Timetable Phase 1

„ Biodiversity Surveys „ July 29 2003 Launch „ Forest type assessment „ August Major Field Survey „ Plant diversity „ September – October Follow-up surveys „ Fish „ October – February Analysis and Report „ Insect diversity (Beetles and Moths) Preparation „ Ecotourism Study „ January 2004 Ecotourism survey „ Workshop „ April – workshop „ Management Recommendations

Launch 29 July 2003

31 Why do we want to conserve Ecosystem services Biodiversity? „ Biodiversity at different levels: „ Water supply „ Ecosystem – provision of ecological services „ „ Species - direct utilisation or specific services Flood control „ genetic - genetic material or traits „ Erosion control „ Micro-climate „ Benefits for whom? „ „ FMU license holder Carbon storage „ Local communities „ Pollination „ Downstream populations and species „ „ State government Pest control „ International community „ Amenity ( recreation and ecotourism)

Species and genetic values

„ Timber and Wood products „ Non-wood forest products „ Medicinal plants „ Rattan and bamboo „ Honey „ Aquatic resources „ Fish (food, sport, aquarium trade) „ Genetic resources „ Drought resistance „ Adaptation to low nutrient regimes

32 Threats and impacts Fire „ Fire „ Land clearing/Erosion „ Fragmentation „ Siltation „ Over-exploitation

“Smoke from forest fires covers much of SE Asia - Sept. 1997 (NASA satellite image)

33 Land development

Erosion

.

34 Sedimentation

Sediment and silt

Options and opportunities Proposed Activities for year 2

„ River basin management „ Community participation „ Socio-economic study „ Community involvement/development „ Community organisation „ Ecotourism development „ Aquatic resources „ Assessing options for enhanced protection „ Non-timber forest product development „ Tagal system „ User/beneficiary pays „ Non-Timber forest products „ Current usage „ Options for development „ Management strategy for the conservation area „ Implementation activitie

Areas for discussion during workshop

„ Feedback and comments on the Yr1 activities and results „ Comments on the current management approaches „ Options for sustainable management „ Future assessments and activities Thank You

35 Appendix 3: Q & A from Session II (Presentation of Research Findings)

Rapporteurs: Janet Ligunjang & Yong Szu Cherng (SFD)

(Q=question, C=comment, A=answer)

Anthony Lamb (read by Reuben Nilus) C1: For future studies of ultramafic plants to better understand their adaptive features to these toxic soils, it would be interesting to analyse the levels of plant nutrients. For Sabah ultramafics, one species has been found to have 17,000 ppm of nickel in the leaves. Another species, Phyllanthus balgoegii has 9% copper in its green sap.

C2: We have heard constant reference to heath forests. Heath forest is normally defined as a stunted forest developed on leached sandy soils often with an iron pan. I think we should refrain from confusing heath forest on sandy formation as against rocky well-drained and very structured ultramafic soil with toxic metals.

C3: Gymnostoma sumatranum found as pure stands on landslides is the obvious pioneer species to establish in disturbed, burnt and logged areas and will probably result in rebuilding a new forest association under it. It could be a future prospect for rehabilitation.

C (Reuben Nilus): I share the same view based on my experience in the field.

Frederick Kugan (SFD) Q1: Emphasis should be given on other faunal studies as well.

A (Faizal Parish): Other faunal studies were not carried out due to limited resources. This may be incorporated in future studies.

A (Arthur Chung): In the present study, only insects and fish were investigated. This does not mean that we underestimated the importance of other fauna. FRC does not have the expertise to study other fauna, and the funding was limited. However, this would be taken into consideration in future studies by inviting the participation of other agencies.

Q2: Is it possible to expand the project to other Non-Forest-Management (NFM) areas, looking at possible impact of forestry activities on the many biodiversity values?

A (Faizal Parish): Yes, it is possible and it would be good for comparison. An area would have to be identified or classified as NFM area.

Q3: Management strategy is important, incorporating ‘practical guidelines’ for assessing biodiversity, and most importantly a monitoring system to gauge changes over time. These guidelines must be cost effective and one that ensure credible results.

Q4: Identification of potential CDM projects in the FMU?

A (Faizal Parish): This can be done by using satellite images to monitor the CDM related projects on climate change.

Lim Hin Fui (FRIM) Q1: Are there customary land rights claims within FMU 4? If ‘yes’, how do you resolve land use conflicts?

A (Tay Soon Poh): There are no customary land right claims within FMU 4. Q2: What is the policy on allowing local communities to use non-timber resources within FMU 4?

A (Tay Soon Poh): Not allowed to harvest non-timber resources commercially but allowed to do so for sustenance.

Q3: Is there any future plan to establish a benefit-sharing mechanism for the benefit of local communities?

A (Tay Soon Poh): Benefit-sharing can be incorporated in future forest royalty charges.

36 Azmi Nordin (JPSM) Q1: Are the sampling plots sufficient to represent the Meliau Range?

A (Reuben Nilus): It is difficult to have sampling plots in certain areas which are very steep and not within the physical capacity.

Q2: It would be good to involve various expertise of fauna and flora in the biodiversity survey to cover a more comprehensive study.

A (John Sugau): There is lack of expertise in other plant groups e.g. mosses and this will be taken into consideration by inviting other researchers in future research work.

A (Chey Vun Khen): Insects are used widely in biodiversity studies compared to other faunal groups. Reasons being they are more speciose, and more easily sampled than other groups.

C (Chee Tong Yew): The limited amount of fund is not enough to cover a wide range of fauna and flora in such a short time. Nevertheless, this survey has given us some basic information for further research work which can be expanded to other FMUs. It is important to identify what is there in the conservation area.

Q3: Could you please clarify the definition of a ‘new record’?

A (John Sugau): For the present study, it is defined as a plant species that was previously known from one locality, and it was recorded for the first time in the Meliau Range.

A (Chey Vun Khen): Flora and fauna do not recognize political boundaries, thus, new record for insects generally means that the species was not recorded from Borneo previously.

T. Tsubouchi (JICA/BBEC) Q1: Do you think there is any seasonal variation in insects, e.g. beetle assemblage?

A (Arthur Chung): In this study, seasonal variation could be determined on the beetle assemblage because of the short sampling period. In some previous studies, e.g. on fireflies, there is no seasonal variation, and this could be different for other beetle groups.

Q2: Any possibility of using insects to indicate forest status, such as reproduction or health?

A (Arthur Chung): Yes, insects can be used as indicators. The species composition of a healthy forest could be different from those that have been disturbed, though there are overlap species.

A (Chey Vun Khen): Insects are nowadays commonly used in rapid biodiversity assessment, more so to indicate the different habitat types. In this study, for example, there are endemic moth species which favour heath forest.

Rashid Saburi (SWD) Q1: What kind of animals recommended for sport hunting?

A (Martin Paul Vogel): Sambar deer and wild boar.

A (Tay Soon Poh): It should be controlled and only allowed at certain time of the year. Studies should be conducted to see how abundant the fauna is and how many can be harvested.

Q2: How much (percentage) of the area to be covered (standard rate of sample area) as representative of Ulu Tungud?

A (Reuben Nilus): There is no standard sample size. It is based on an ad-hoc basis. Ultramafic areas are quite homogenous. The area to be covered also depends on various factors, such as availability of funds. Satelite images would help tremendously in determining the vegetation type and composition.

37 Appendix 4: Discussion Summary for Session III

Q: What are the risks that you foresee for the conservation of the Ulu Tungud Forest Reserve Area?

x One particular risk is fire. Fire has been a constant threat to almost all forest reserves, especially during the dry season. In the last decade, there have been eight significant periods of drought in Sabah, with major fire incidences occurring in 1982-83 in Tawau. Since then, fire incidences have been recorded in the last 20 years up till today. Reforestation with Acacia mangium within the forest reserve needs special attention taking into consideration of its vulnerability to fire.

x Fires could also be due to the illegal encroachment into the forest reserve to collect non-timber forest products such as orchids and nepenthes. The opening of trails would provide access to humans and hence any activities such as camping will be a threat to the forest reserve. Since the forest is a fragile ecosystem and takes a long time to recover if damaged, the management of forest reserves should work with local communities to prevent encroachment into the reserves.

x There is also the risk of depleting fish resources. Some local people catch fishes in the Meliau River as well as the Ansuan River for their livelihood. However, the fish population has been severely reduced as a result of illegal fishing activities, such as poisoning and bombing, carried out by some plantation workers and outsiders.

x In relation to the fish resources in the rivers, there is also the risk of water pollution from nearby plantations. Leakage of fertilisers and herbicides into the rivers increases the nutrient level, resulting in euthrophication in some sections of the rivers. Buffer zones should be kept intact in order to protect the rivers.

Q: In your view, what is the next step for this Ulu Tungud biodiversity conservation project?

x There is a need to conduct further detailed surveys with more sampling plots, particularly in the central valley of the Meliau Range. These studies will give a clearer picture of the biodiversity composition and status in the forest reserve. However, under Phase 1, there is insufficient time and resources.

x As for eco-tourism, the management of Ulu Tungud Forest Reserve (TSH resources Bhd.) should have a clear idea and plan of what they are going to do. There should be a 3, 5 or 10-year strategy to implement eco-tourism. This could be done by first creating a road map and deciding what to be put in place.

x Ensuring the demarcation of the conservation area within the Ulu Tungud forest reserve as conservation and protection area, secure from illegal encroachment or fishing.

x The Management should be better equipped with more knowledge and skills to manage the area.

x GEC suggested a study on restocking of fish resources in the rivers within the conservation area. This could help promote eco-tourism.

x TSH stated that the era of awarding logging licences is over, and placed the trust on the state government, through the Sabah Forestry Department, to create an environment where the government, private sector and local communities can work together to co-manage the natural resources and environment.

x PACOS suggested further scientific studies and stressed the need to explore ways to involve local communities in efforts to improve their welfare, through such activities as ecotourism. Scientist could find out more about the forest by exchanging and sharing the information with local communities since the local communities have been utilising and inhabiting the area for decades. An area worth exploring is the cultural and historical aspects of the local communities.

x There is the possibility of developing plant biodiversity research, with the rich diversity of flora found in the conservation area. Rare and endemic species should be used as an indicator for determining degradation of the Forest Reserve.

38 x The FRC stressed community involvement in future studies. It was suggested that TSH should set aside a conservation area where the local community can be involved in the management of natural resources and protection of the area from encroachment by outsiders, besides being involved in plantation activities. Future activities on eco-tourism should also involve the local people. There should also be more socio-economic studies on the medicinal plants found in the eastern and northern parts of the conservation area since the local communities have been harvesting these plants for personal consumption. However, according to TSH, the locals are more interested in having their own small scale oil palm plantation than working with TSH.

x One other issue raised was poor soil condition in Kampung Ensuan & Kampung Baba, resulting in poor oil palm production. For this reason, many villagers have sold their plots to the large plantation companies. Some villagers are entrepreneurs while others have contract jobs. An incident where 5kg of bird’s nest was harvested from the conservation area was reported.

Q: What are the priority actions to be undertaken in the area in the coming year?

x The main priority should be a study on how to restore rivers (like Meliau River). in the conservation area. This study could kick off with interviews with the local community to find out the fish resources in the past, the average catch, etc.

x FRC: There should be an applied community and ecotourism research. The local community needs to know the importance of biodiversity conservation. There is no point talking of biodiversity when basic needs are not address (water, subsistence, shelter). One could keep doing surveys (a never ending story), but there should be more emphasis on the practical side to conserving biodiversity.

x The priority of future studies should meet the needs of the local communities such as:

o Identifying non timber forest produce that would benefit the livelihood of the local communities; o Collecting local knowledge that would eventually serve as guides for ecotourism. (On the other hand, a suggestion was made that the local knowledge should be kept to the local communities.)

x From a visit to Kampung Ensuan, almost 80% of the villagers have fishing nets. And from a personal interview with a member of the local community, there is almost 40kg of fish per catch. The dependents of fish resources by the local communities indicated there is the need to access work with fishery department, in exploring the options for Tagal system. This system empowers local communities to control and catch those from outside doing illegal fishing.

x This process can be explored by having a consultation meeting or dialogue amongst all stakeholders, including District Officers, District Forest Officer, the Fishery Department as well as the local communities.

x The Sabah Wildlife Department suggested that local people be included as stakeholders since they have lived in the area for many years and will be able to contribute effectively to the management of the area. Alternative livelihoods should also be developed for them.

Summary

We are all facing a challenge to ensure that conservation of our unique biodiversity while facing sustainable development for local partners. Undoubtedly, there is a potential to create a model of global significance for ‘SMART’ Partnership on Biodiversity Conservation.

39 Appendix 5: Participant List

No. Name Address

Participants outside SFD

1 Philip Ho Bornion Timber 2 Vitalis Moduying Environmental Protection Dept., Kota Kinabalu 3 Gidices Gonsuin Fisheries Dept., Kota Kinabalu 4 Primus Lukas Fisheries Dept., Sandakan 5 Lim Hin Fui FRIM 6 Noorsiha Ayop FRIM 7 Tan Shou Keng FRIM 8 Chee Tong Yew GEC 9 David Lee GEC 10 Faizal Parish GEC 11 Hong Lay Thong IPGRI 12 Lee Sok Young IPGRI 13 Azmi Nordin Jabatan Perhutanan Semenanjung Malaysia 14 Toshinori Tsubouchi JICA/BBEC, Kota Kinabalu 15 Anthony Lamb Kota Kinabalu 16 Kevin Albert Goh KTS 17 Claudia Lasimbang PACOS Trust 18 Wong Tain Choi PKR Office Elopura, Sandakan 19 Steven Chia Prospect One Sdn. Bhd. 20 Michael Jumin Sabah Forest Industries, Sipitang 21 Lau Kieng Siong Sabah Timber Industry Association 22 Rashid Saburi Sabah Wildlife Dept., Sandakan 23 Eric Wong Sapulut Forest 24 Jimmy Kho Sapulut Forest 25 Jaswant Singh Kler TSH 26 Kelvin Tan TSH 27 Ong Chye Lye TSH 28 Tay Soon Poh TSH 29 Tee Choon Hwa TSH 30 Ahmad Sudin Universiti Malaysia Sabah 31 Kelvin Pang Kat Nyen Universiti Malaysia Sabah 32 Maria Lourdes Universiti Malaysia Sabah 33 Malcolm Boxey Jilimin Universiti Malaysia Sarawak 34 Tim Jones Whitenest 35 Badrul Hisham K. Yayasan Sabah 36 Barnabas Gait Yayasan Sabah 37 Gregory Mosigil Yayasan Sabah 38 Masturah Sulaiman Yayasan Sabah

Participants from SFD*

39 Ahmad Harun Sabah Forestry Department 40 Ahmad Saibi Hj. Zulkepli Sabah Forestry Department 41 Albert Radin Sabah Forestry Department 42 Anuar Mohamad Sabah Forestry Department 43 Arnold Gadana Sabah Forestry Department 44 Arshad Ismail Sabah Forestry Department 45 Arthur Y. C. Chung Sabah Forestry Department 46 Awangku Mohd. Ridzuan Sabah Forestry Department 47 Azman Said Sabah Forestry Department 48 Bernard Valentine Sabah Forestry Department 49 Chak Chee Ving Sabah Forestry Department 50 Chey Vun Khen Sabah Forestry Department 51 Chia Fui Ree Sabah Forestry Department 40 52 Chong Fung Yun Sabah Forestry Department 53 Elsie Albert Sabah Forestry Department 54 Eyen Khoo Sabah Forestry Department 55 Fadzil Yahya Sabah Forestry Department 56 Frederick Kugan Sabah Forestry Department 57 Henry Solibun Sabah Forestry Department 58 Hildy @ Boy Albert Sabah Forestry Department 59 Hj. Mohd. Salleh Hj Abbas Sabah Forestry Department 60 Hussin Tukiman Sabah Forestry Department 61 Jaffirin Lapongan Sabah Forestry Department 62 Jameri Tahir Sabah Forestry Department 63 James Chow Sabah Forestry Department 64 James Josue Sabah Forestry Department 65 Janet Ligunjang Sabah Forestry Department 66 Joan Pereira Sabah Forestry Department 67 John Sugau Sabah Forestry Department 68 Joseph Tangah Sabah Forestry Department 69 Julius Kodoh Sabah Forestry Department 70 Julius Kulip Sabah Forestry Department 71 Jupiri Titin Sabah Forestry Department 72 Lee Chee Kean Sabah Forestry Department 73 Lee Ying Fah Sabah Forestry Department 74 Maria Ajik Sabah Forestry Department 75 Mohd. Jaafar Nyiro Sabah Forestry Department 76 Mokran Ingkat Sabah Forestry Department 77 Muhd. Razali Mohammad Sabah Forestry Department 78 Noreen Majalap Sabah Forestry Department 79 Peter Jack Sabah Forestry Department 80 Pilis Malim Sabah Forestry Department 81 Raubin Gampilok Sabah Forestry Department 82 Reuben Nilus Sabah Forestry Department 83 Robert Ong Sabah Forestry Department 84 Roslyndah Peter Sabah Forestry Department 85 Sam Mannan Sabah Forestry Department 85 Samit Hj. Abd. Sani Sabah Forestry Department 87 Sining Unchi Sabah Forestry Department 88 Sophia Ken Sabah Forestry Department 89 Tonny Wong Sabah Forestry Department 90 Veronica Guanih Sabah Forestry Department 91 Wilson Thomas Sabah Forestry Department 92 Yahya Awang Sabah Forestry Department 93 Yong Szu Cherng Sabah Forestry Department 94 Yosefa Maisi Sabah Forestry Department 95 Zamrie Imiyabir Sabah Forestry Department

Representatives from the press

96 Yusop T. The Borneo Post 97 Rusdin Enchi Berita Harian 98 James Chuah Mong Seng Merdeka Daily News 99 - The New Sabah Times

* some SFD officers did not register at the reception.

41 Appendix 6: Newspaper clippings of the Workshop

42 43