PROPOSED OIL PALM PLANTATION DEVELOPMENT ON 8,094.43 HECTARES (20,001 ACRES) LAND ON PT4951-PT4955 AND PT4987-PT4991 IN MUKIM TEMBELING, DISTRICT OF JERANTUT, PAHANG DARUL MAKMUR. (ENVIRONMENTAL SCOPING INFORMATION) SECTION 2 BASIC INFORMATION OF PROJECT 2.1 PROJECT TITLE This project is titled “Proposed Oil Palm Plantation Development on 8,094.43 Hectares (20,001 Acres) Land on PT4951 - PT4955 and PT4987 - PT4991 in Mukim Tembeling, District of Jerantut, Pahang Darul Makmur" (henceforth referred to as the 'Project'). The proposed Project will be developed by THP Agro Management Sdn Bhd while the land owner and Project Proponent is Deru Semangat Sdn Bhd. The details of both parties are listed below. All inquiry related to the project may directly forwarded to the project proponent and project developer as indicated below. LAND OWNER AND PROJECT DEVELOPER PROJECT PROPONENT DERU SEMANGAT SDN. BHD. THP AGRO MANAGEMENT SDN BHD Contact Person: Tn. Ab Wahab B. Ab. Rashid Tn. Mat Saad Ramli (019-7125006) Designation: Senior Manager Plantation Director Contact Person: Tn. Muhamad Suhaili B. Shahruddin Tn. Md Hanif B. Md Nor (013-4266151) Designation Senior Assistant Manager Plantation Advisor Address: Ladang Tembeling THP Agro Management Sdn Bhd No 52, Jalan VM 2, Level 31 - 35, Taman Mutiara Villa, Menara TH Platinum, 27000 Jerantut, No. 9, Persiaran KLCC, Pahang Darul Makmur 50088 Kuala Lumpur. Tel: - 03 26034800 Fax: - 03 26034691 BASIC INFORMATION OF PROJECT 2 - 1 PROPOSED OIL PALM PLANTATION DEVELOPMENT ON 8,094.43 HECTARES (20,001 ACRES) LAND ON PT4951-PT4955 AND PT4987-PT4991 IN MUKIM TEMBELING, DISTRICT OF JERANTUT, PAHANG DARUL MAKMUR. (ENVIRONMENTAL SCOPING INFORMATION) 2.2 PROJECT NATURE The Project is located in Mukim Tembeling, District of Jerantut, on Lot PT4951 – PT4955 and PT4987 – PT4991. The Project plans to develop the logged over forest into an oil palm plantation covering an area of about 8,094.43 hectares (20,001 acres). The development of the Project shall follow the same concept used for the establishment of existing oil palm plantation (phase 1) adjacent to the Project site also developed by THP Agro Management Sdn Bhd. The oil palm trees would be planted in the Project site as it is compatible with the regional biophysical and social context which is largely surrounded by agricultural environment. 2.2.1 Land Status The existing condition of the Project site is a forest compartment which is classified as a production forest. According to Manual Perhutanan Volume III (2005), Forestry Department of Peninsular Malaysia, chapter 17, section 4.2.1, sub-section i(a), National Forestry Act 1984, the timber production from the forest is allowed with either a license or permit. Generally, this area is categorized based on: a) Elevation below than 1000 m, above mean sea level b) Slope not more than 40º c) Having a good road system and/or with slight difficulty to access The land has been approved by Pejabat Daerah dan Tanah Jerantut through a letter with a reference number: Bil.(6)dlm.PTJ.6.287/15, Bil.(7)dlm.PTJ.6.288/15, Bil. (7)dlm.PTJ.6.286/15, Bil. (7)dlm.PTJ.6.285/15, Bil. (16)dlm.PTJ.6.284/15 dated on 29th April 2015; Bil. (10)dlm.PTJ.6.1257/15, Bil. (10)dlm.PTJ.6.1256/15, Bil. (10)dlm.PTJ.6.1255/15, Bil. (10)dlm.PTJ.6.1254/15 dated on 29th June 2016; Bil. (20)dlm.PTJ.6.2175/14, Bil. (21)dlm.PTJ.6.2175/14, Bil. (22)dlm.PTJ.6.2175/14, Bil. (23)dlm.PTJ.6.2175/14, Bil. (24)dlm.PTJ.6.2175/14 dated on 30th December 2014; Bil. (14)dlm.PTJ.6.1253/15 dated on 29th June 2016 (Refer Appendix 3). These lots have been alienated with a lease period of 99 years to Deru Semangat Sdn Bhd by Pejabat Daerah dan Tanah Jerantut. The project proponent is allowed to develop and manage the Project site as agricultural plantation concept (oil palm). BASIC INFORMATION OF PROJECT 2 - 2 PROPOSED OIL PALM PLANTATION DEVELOPMENT ON 8,094.43 HECTARES (20,001 ACRES) LAND ON PT4951-PT4955 AND PT4987-PT4991 IN MUKIM TEMBELING, DISTRICT OF JERANTUT, PAHANG DARUL MAKMUR. (ENVIRONMENTAL SCOPING INFORMATION) 2.2.2 Maklumat Semakan Perancangan dan Zoning Perkawasan (JPBD) Based on "Maklumat Semakan Perancangan dan Zoning Perkawasan (JPBD)", the Project site is located in Mukim Tembeling, Jerantut (based on Rancangan Tempatan Daerah (RTD) Jerantut (Pengubahan) 2020. The current zoning and land use for the Project site is a forest zoning area. 2.2.3 Rancangan Tempatan Daerah (RTD) Jerantut 2020 According to "Pelan Cadangan 2020 Rancangan Tempatan Daerah (RTD) Jerantut (Pengubahan)", the Project site is located in Yong Forest Reserve specifically under Blok Perancangan Kecil (BPK) 4.3, where the land use is classified for both forest and agriculture. The current land use of the project site which is forest zoning and also in line with Maklumat Semakan Perancangan dan Zoning Perkawasan issued by the Jabatan Perancangan Bandar dan Desa (JPBD) Pahang can be changed and converted for agricultural purpose afterwards. 2.2.4 Environmentally Sensitive Area (ESA) Referring to Rancangan Tempatan Daerah (RTD) Jerantut 2020, there were several components considered as an environmentally sensitive area (ESA) as shown in Table 2.2.1. Table 2.2.1 Components of ESA within the Project Site LEVEL OF ESA COMPONENTS LEVEL 1 LEVEL 2 LEVEL 3 Yong Forest Reserve Yong (Tambahan) Kg. Merting Receivers of Water Catchment Kg. Tekai Area Kg. Batu Balai Note: 1-Highly Sensitive; 2-Moderate Sensitivity; 3-Low Sensitivity According to "Garis Panduan Perancangan Pemuliharaan dan Pembangunan KSAS: Hutan Simpan Kekal" (Appendix 4), the project site which is located in the vicinity of Yong Forest Reserve is considered as Environmentally Sensitive Area (ESA). It is classified as moderately sensitive area (ESA 2) due to the elevation is within 300 to 1000 m above mean sea level and also the slope ranging between 25° to 35°. BASIC INFORMATION OF PROJECT 2 - 3 PROPOSED OIL PALM PLANTATION DEVELOPMENT ON 8,094.43 HECTARES (20,001 ACRES) LAND ON PT4951-PT4955 AND PT4987-PT4991 IN MUKIM TEMBELING, DISTRICT OF JERANTUT, PAHANG DARUL MAKMUR. (ENVIRONMENTAL SCOPING INFORMATION) 2.3 STATEMENT OF NEED The oil palm industry forms the economic backbone of Malaysia and continues to face new challenges in the face of globalization. The growth of the palm industry in Malaysia has been phenomenal. From mere 400 hectares planted in 1920, the hectarage increased to 54,000 hectares in 1960. Since then many more areas have been opened up for oil palm cultivation, either from virgin jungles or from the conversion of plantations that originally supported rubber or other crops. This increase in hectare is a direct consequence of the government's policy on crop diversification. By 1996, the hectarage under oil palm stood at a staggering 2.6 million hectares. By 2005 and 2010 the percentage change in the areas under oil palm was around 20% for each five-year period. In 2011, the hectarage reached 5 million hectares. It also saw a corresponding growth in the palm oil milling and refining sectors. Encouraged further by the government’s incentive to exploit the country's rich agro-based resources, oleo chemical processing from palm oil and palm kernel oil began to gain prominence in 1980's (MPOB, 2014). The National Agro-Food Policy (NAP4) has been put in place to tackle the issue of sustainable agriculture and the competitiveness of the agro-food industry with food safety and nutrition aspects along its value chain.In line with the effort to develop Malaysia as a high-income nation, it is anticipated that the National Agro-Food Policy will increase the revenue of farmers as well as agro-entrepreneurs. This, in turn, will allow the agro-sector to develop into a steady and resilient industry. Among the beneficial aspects of the project are: The Project is aimed to stimulate economic development and subscribe towards fulfilling national policies under the Eleventh Malaysian Plan (2015-2020) which emphasis to increase productivity through modernization of the sector and supported by strengthening the research innovation and development; The Project will support palm oil mill operations and other related downstream industries; It will provide and increase job opportunities amongst the population i.e. business opportunity and employment in agricultural sector; The Project will stimulate socio economic growth in the district, as well as promote the development of supporting amenities and facilities in the district (Indirect Impact); The project will transform a forest into a plantation site which will be environmentally sustainable; BASIC INFORMATION OF PROJECT 2 - 4 PROPOSED OIL PALM PLANTATION DEVELOPMENT ON 8,094.43 HECTARES (20,001 ACRES) LAND ON PT4951-PT4955 AND PT4987-PT4991 IN MUKIM TEMBELING, DISTRICT OF JERANTUT, PAHANG DARUL MAKMUR. (ENVIRONMENTAL SCOPING INFORMATION) The balance between rural and urban development in the district will be improved. It will promote better working skills and reduce potential migration to urban areas; There is a potential for increased economic growth in the area over the long term due to the possible development of related agricultural and agro-based industries locally. It would create rural townships where workers reside and enjoy an improved quality of life. 2.4 PROJECT LOCATION The Project site is located on PT4951 - PT4955 and PT4987 - PT4991 in Mukim Tembeling, District of Jerantut, Pahang Darul Makmur with an area of 8,094.43 hectares (20,001 acres) (Plate 2.4.1). It is located adjacent to the existing development of oil palm plantation where the Project Proponents are similar to the current proposed Project. The adjacent site is currently in Phase 1 on PT4856, PT4857 and PT4860 (6,000 acres) and PT4858 and PT4859 (4,000 acres) whereby the proposed project will be in Phase 2 and Phase 3 on PT4951-PT4955 and PT4987- PT4991.