CHAPTER 1

INTRODUCTION

1.1 TITLE OF PROJECT

(i) Name/Title of Project

The project presently studied is entitled:

“Projek Ladang Hutan Komersil Di Hutan Simpan Seluas ±5000 Hektar (Fasa 1) Dungun, ”

For brevity, it may be referred to as the ‘Project’ in this report.

(ii) Project Proponent

The project proponent (PP) for this project is the Kumpulan Pengurusan Kayu Kayan Trengganu Sdn. Bhd. with the address and the management contact addresses are as follows:

KUMPULAN PENGURUSAN KAYU KAYAN TRENGGANU SDN. BHD.

Address : Jalan Kalsium, , 23200 Dungun, Terengganu Darul Iman Contact Person : Mr Suhairi Sulong Telephone : 09 – 833 7245 Facsimile : 09 – 833 7023 Email ; [email protected]

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(iii) EIA Consultant

The PP has appointed a team of Environmental Consultants from UniSZA Consultancy Sdn. Bhd (UCSB) to conduct and submit an Environmental Impact Assessment (EIA). The EIA Consultants can be contacted at the following address:

UniSZA CONSULTANCY SDN. BHD. Address : Bangunan Hal Ehwal Pelajar & Alumni (HEPA), Aras 1, UniSZA Kampus Gong Badak, 21300 Terengganu Darul Iman Contact Person : En. Roslie Bin Zakarya @ Derahman Telephone : 09 – 668 8818 Facsimile : 09 – 662 6862 Email : [email protected]

(iv) Project Location

The proposed forestry development is located between N04°48'08.8", E103°07'21.0" and N04°54'58.8", E103°05'27.8" in Jerangau Forest Reserve, Jerangau, , Terengganu Darul Iman on an approximately 5,000.00 hectares (12,355.27 acres). The proposed project area sited at northwest of Dungun District nearby boundary of . The proposed project area located 45 km from through Federal Road 132 (FR132) and State Road 125 (T125). Adjacent settlement or developed area is FELDA Jerangau Barat (0-2km), which is developed for oil palm plantation area equipped with residential and facilities. Major access to propose project site is at FELDA Jerangau Barat (56 km from Kuala Dungun Town) (FR1689),

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Projek Ladang Hutan Komersil Di Hutan Simpan Jerangau Seluas 5000 Hektar (Fasa 1) Dungun, Terengganu Introduction

approximately 50 minute trip by driving. The access road to project site from FELDA Jerangau Barat by 4x4 vehicle through oil palm plantation unpaved road along 5 km until reached the boundaries between oil palm plantation and forest area. Jerangau Forest Reserved located at West Terengganu and was selected as starting location for a planting commercial forest farm project under Kumpulan Pengurusan Kayu Kayan Trengganu Sdn. Bhd. (KPKKT).

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Projek Ladang Hutan Komersil Di Hutan Simpan Jerangau Seluas 5000 Hektar (Fasa 1) Dungun, Terengganu Introduction

Dungun Terengganu

Project Site

LOCATION PLAN KEY PLAN

Prepared For:

Kumpulan Pengurusan Kayu Kayan Trengganu Sdn Bhd Jalan Kalsium, Bukit Besi, 23200 Dungun, Terengganu Darul Iman

Prepared By:

UniSZA Consultancy Sdn Bhd Aras 1, Bangunan Hal Ehwal Pelajar & Alumni (HEPA), UniSZA Kampus Gong Badak, 21300 Kuala Terengganu, Terengganu Darul Iman

KAWASAN HCVF ZON PENAMPAN LEBUHRAYA LPT2 TADAHAN AIR PENDUDUK

Figure 1-1: Key plan of proposed project commercial forest farm on Jerangau Reserve Forest in Dungun District, Terengganu

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Prepared For:

Kumpulan Pengurusan Kayu Kayan Trengganu Sdn Bhd Jalan Kalsium, Bukit Besi, 23200 Dungun, Terengganu Darul Iman

Prepared By:

UniSZA Consultancy Sdn Bhd Aras 1, Bangunan Hal Ehwal Pelajar & Alumni (HEPA), UniSZA Kampus Gong Badak, 21300 Kuala Terengganu, Terengganu Darul Iman

Sempadan Hutan Simpan Tapak Projek

Figure 1-2: Forest Reserve Boundary

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1.2 PROJECT PROPONENT AND QUALIFIED PERSONS

Project Proponent (PP) for this proposed project is Kumpulan Pengurusan Kayu Kayan Trengganu Sdn. Bhd. ("KPKKT") is the “Forest Manager” of a long term forest concession of approximately 129,140 hectares in the State of Terengganu on the East Coast of Peninsular ., covering 109,716 hectares of Dungun Timber Complex ("DTC") and 19,714 hectares of Cherul Forest Concession ("CFC"). KPKKT is the only timber management company in the world that has successfully completed the first 25-year cycle of managing the tropical rainforest under the Malaysian Selective Management System ("SMS"). From 2008 onwards, KPKKT has organized itself in managing the same forest area under the second cycle, this time around for a period of 30 years.

The PP has appointed a team of Environmental Consultants from UniSZA Consultancy Sdn. Bhd (UCSB) to conduct this Environmental Impact Assessment (EIA). The project team members and assistant who prepared this report are tabulated in Table 1-1.

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Table 1-1: Key team members of the EIA (Second Schedule) study

REGISTERED NAME/ WITH DOE PROPOSED NO. QUALIFICATION SIGNATURE EXPERIENCE CATEGORY AREA/FIELD ID NO. VALID STUDY AREA DATE A) EIA STUDY TEAM LEADER 1. Mohd Hasri Bin  B.Sc. (Hons) EIA  Water Quality C0260 31 July  Study Team Omar Environmental Consultant  Air Quality 2019 Leader Management  Water Quality & Air Quality B) EIA STUDY MEMBER 2. Miftahu  Bachelor EIA  Soil Erosion & C0519 31 June Soil Erosion & Salihin Bin Degree of Consultant Sediment 2019 Sediment Analyst Mukhtar Engineering Control (Biochemical –  Water Quality Biotechnology) 3. Prof. Dr.  B.Sc. (Biology) Subject Ecological Studies SS0685 31 May Ecologist Shahrul Anuar  MSc. (Ecology) Consultant (Wildlife Ecology & 2021 (Terrestrial) Bin Mohd Sah  PhD. (Zoology) Management) 4. Dr. Asyraf Bin  B.Sc. (Botany) Subject Ecological Studies SS1064 31 July Biologist Mansor  M.Sc. (Botany) Consultant (Flora/Botany) 2020 (Terrestrial)  Ph.D. (Biology)

5. Prof. Dr.  B.Sc. Subject  Hydrology SS0229 31 May Hydrology & Muhammad (Geological Consultant  Geological 2021 Geological Studies Barzani Bin Engineering) Studies Gasim  M.Sc. (Structural Geology)  Ph.D. (Hydrology and Water Quality)

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REGISTERED NAME/ WITH DOE PROPOSED NO. QUALIFICATION SIGNATURE EXPERIENCE CATEGORY AREA/FIELD ID NO. VALID STUDY AREA DATE 6. Salasiah Binti  Dip. Sc EIA  Water Quality C0913 31 Waste Abd Rahman  B.Eng. Consultant December Management (Chemical) 2019

7. Noraishah  B.Sc EIA  Air Quality & C0999 30 May Socio-Economic Zamani (Environmental Consultant Odour 2021 Science);  Water Quality MSc.Social(Soc  Social ial Impact Economic Assessment Studies and Environment) 8. Kumar A/L M.  B.Sc (Botany); EIA  Terrestrial C0047 31 March Forestry Annovoo @ M.Sc Consultant Ecology 2019 Maniam (Biotechnology)  Forestry  Waste Quality Management  General

Environmental Management C) ASSOCIATE CONSULTANT 8. Mohd Zaid  Dip. Chemical Associated  Chemical AC5067 - Air Quality Arqam Bin Engineering Consultant Process Water Quality Zainal Abidin  Bachelor of  Water Quality Chemical  Air Quality Engineering  Wastewater Technology Treatment (Hons.) in Process

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1.3 LEGAL ASPECTS

1.3.1 Prescribed activity is subjected to section 34A, Environmental Quality Act, 1974

Kumpulan Pengurusan Kayu Kayan Trengganu Sdn. Bhd. ("KPKKT") as Project Proponent (PP) for this proposed project is currently planning to develop for a planting commercial forest farming on 5000 hectares forest land in Jerangau Forest Reserve area is hereinafter referred as "the Project".

The Environmental Quality (Prescribed Activities) (Environmental Impact Assessment) Order 2015 made under Subsection 34(1) of the Environmental Quality Act 1974 requires the Project to obtain approval from the Department of Environment (DOE) Malaysia prior to the Project implementation. An. Environmental Impact Assessment (EIA) Report shall be prepared. The Project will involve environmentally sensitive area; it is subjected to the Second Schedule of the Order of the following items:

5. FORESTRY d) Logging, or cutting or taking of timber covering an area of 500 hectares or more. e) Development of planted forest covering an area of 500 hectares or more.

The PP has received the Terms of Reference (TOR) endorsement letter from Department of Environment (DOE) Headquarter [DOE letter dated on 8 November 2018 (DOE reference letter: JAS12/200/000/018,Jilid(6) as in APPENDIX I)] for submission Environmental Impact Assessment (EIA) Second Schedule report to DOE . Detail description of Terms of Reference (TOR) for the proposed project as in Chapter 2.

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1.3.2 Conformance of Proposed Project to Government’s Development Plans

(a) National Forestry Policy

The global demand and supply of wood from forest plantations is projected to continuously increase in the decades to come. Forest plantations have long been recognized as an essential part of the strategic development plan for the suitable management of forest resources in Malaysia. This strategy dates back to the beginning of the century when efforts were made to test out both indigenous and exotic species in the country.

The Government is cognizant of the international debate on tropical rainforests and the concerns over their rapid degradation and loss. Malaysia’s rainforests are among the most bio-diverse forests worldwide and therefore their management is critical for the conservation of a vast number of plant and animal species. Hence, sustainable forest management has become the ‘buzz’ word for forest management. Under the Eleventh Malaysia Plan, the Government has clearly expressed its commitment to protect the environment and ecological services by adhering to the principles of sustainable management. This would require that the annual felling rate is reduced by at least 12% over the 5 year period.

The Forestry Policy has also set out principle for forest plantation which are:

 Establish forest plantations of local species and abroad to meet the wood supply from natural forests.  Encourage private investment in forest development through the establishment of private forest plantation area.

(b) National Timber Industry Policy (2009-2020)

The importance of forest plantations in providing sustainable supply of timber in Malaysia cannot be refuted. Presently, wood based industries, particularly furniture and panel board manufacturers need the support of

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the federal, state and local governments in ensuring sustainable supply of raw materials. The growth of Malaysia's wood-based exports might be stalled if strategic measures to circumvent the supply of raw materials are not implemented. Malaysian wood-based industries would encounter an increasing competition from low-cost neighbouring countries (Thailand, Indonesia & Vietnam) with ample supply of cheap raw materials. Forest plantation development is considered a strategic vehicle in supplementing sustainable timber supply for the wood-based industries in Malaysia. Indeed, the National Timber Industry Policy 2009-2020 (NATIP) clearly indicates that forest plantation sector to yield 16.7 million cubic metres of logs per year within a period of 2016-2020. Natural forests are expected to produce only 14 million cubic metres of logs annually during the same period.

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