+603 – 9281 1999 | council@mtc.com.my

+603 – 9281 1999 | council@mtc.com.my

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Commitment to Sustainability

Commitment to Sustainability

Malaysia’s Federal System & Forest Governance

Malaysia operates under a federal system of government divided into three regions:

  • Peninsular Malaysia
  • Sabah
  • Sarawak

There are 13 states in total:

  • 11 states are located in Peninsular Malaysia
  • 2 states, Sabah and Sarawak, are on the island of Borneo

This structure plays a key role in how natural resources, including forests, are managed — with both federal and state governments sharing responsibilities to ensure sustainable development across the  country.

How Forests are Managed under Malaysia’s
Federal-State System

The forestry and timber industries are essential to Malaysia’s socio-economic growth, providing jobs, supporting rural communities, and contributing to the national economy.

While each of the 13 state governments manages its own forest areas, a number of federal and state-level agencies work together to ensure that Sustainable Forest Management (SFM) practices are implemented effectively across the country.

Key Agencies Involved:

  • Forestry Departments (Federal and State)
  • Ministry of Plantation and Commodities (KPK)
  • Ministry of Natural Resources and Environmental Sustainability (NRES)
  • Malaysian Timber Industry Board (MTIB)
  • Sarawak Timber Industry Development Corporation
  • Sarawak Forestry Corporation
  • Malaysian Timber Council (MTC)
  • Malaysian Timber Certification Council (MTCC)

Below are some of the examples of the amendments to the National Forestry Act 1984 with regard to Illegal Logging Offences and the fines imposed on persons who are found guilty.

Annual Allowable Cut in the Permanent Reserved Forest (ha/year)
Malaysian Plan (MP)
Pen. Malaysia
Sabah
Sarawak
Total
6th MP (1991-1995)
52,000
30,000
96,000
178,000
7th MP (1996-2000)
46,000
60,000
170,000
276,000
8th MP (2001-2005)
42,870
60,000
170,000
272,870
9th MP (2006-2010)
36,940
60,000
170,000
266,940
10th MP (2011-2015)
39,833
60,000
155,000
249,833
11th MP (2016-2020)
41,888
60,000
155,000
246,888
12th MP (2021-2025)
37,710
50,000
145,000
232,710

How Malaysia Balances
Forest Conservation & Development

Malaysia is known for its rich rainforests—but how does it balance forest conservation with the need for roads, cities, farms, and industry?
The answer lies in careful planning and strong forest protection laws.

Over Half the Country is Forested

More than 18 million hectares—over half of Malaysia’s total land area—is still covered in forests. These areas are managed not just for timber, but also for biodiversity, water protection, research, and recreation.

Protected by Law

Many of these forests are officially gazetted as protected areas, including:

  • Permanent Reserved Forests (PRF) – for sustainable timber production
  • Totally Protected Areas (TPAs) – where no logging is allowed, including:

National & state parks

Virgin Jungle Reserves

Marine parks

Wetlands

Wildlife & bird sanctuaries

National & state parks

Virgin Jungle Reserves

Marine Parks

Wetlands

Wildlife & bird sanctuaries

Iconic Nature Spots

Malaysia’s protected areas include world-famous sites like:

Taman Negara

 One of the oldest rainforests on Earth

Kinabalu Park & Mulu Caves

Both UNESCO World Heritage Sites

Tioman Island & Cameron Highlands

Home to unique wildlife and ecosystems

Planning for the Future

Each state must prepare a Forest Management Plan based on smart land use. These plans ensure that forests are used responsibly for:

Conservation of
wildlife and plants

Water and soil protection

Eco-tourism and education

Sustainable timber production

Malaysia continues to update its policies regularly to stay ahead of development pressures while still protecting its natural heritage.

Where Do Malaysia’s Forestry & Environmental Policies Stand Globally?

Malaysia isn’t just managing forests — it’s setting the global standard. Our environmental and forestry policies are regularly reviewed and endorsed by top timber-importing countries and respected international organisations. These policies are continuously updated to stay aligned with global best practices.

Globally Recognised Commitments

Malaysia is a proud member of the International Tropical Timber Organization (ITTO) — a global body that promotes the conservation and sustainable trade of tropical timber.

Malaysia’s policies follow the ITTO Objective 2000, where Sustainable Forest Management (SFM) is not just a practice, but a national priority.

International Benchmarking
& Certification

Malaysia’s forest management and timber certification schemes are developed in consultation with global institutions. They are benchmarked against international criteria, ensuring credibility, transparency, and continuous improvement.

Policy Backed by Action

Every one of Malaysia’s five-year development plans includes a strong focus on environmental protection. The country is steadily moving towards a holistic, integrated approach to managing forests and natural resources.

Malaysia has also ratified key international environmental treaties, reinforcing its role as a committed global player in forest conservation and sustainability.

How is Sustainable Forest Management (SFM)
Practised in Malaysia?

Malaysia has been committed to sustainable forest management for over 100 years, making it one of the pioneers in the region. Today, Malaysia’s forests are managed using clear guidelines, backed by science and international standards.

The Framework Behind SFM

Malaysia has developed the Malaysian Criteria and Indicators (MC&I) to assess forest sustainability at both the national and forest unit levels. With support from international partners like the German Agency for Technical Cooperation, Malaysia created a solid system for monitoring, evaluating, and reporting on SFM.

How Does Malaysia Involve Indigenous & Local Communities in Forest-Based Activities?

Malaysia recognises the importance of including indigenous and rural communities in forest-based development. Rather than displacing them, national policies are designed to support their lifestyle, culture, and livelihoods—while promoting sustainability.

Respecting Forest
Rights & Access

Under the National Forestry Act, indigenous communities in Peninsular Malaysia, Sabah, and Sarawak are given special access to Permanent Reserved Forests (PRF). While the general public cannot enter these areas, indigenous peoples can collect:

  • Rattan & Bamboo
  • Wild Honey
  • Medicinal Herbs
  • Decorative Plants
  • Resins
  • Craft Materials

These non-timber forest products are a vital part of local culture and rural economies.

Creating Livelihood Opportunities

The forestry sector also provides employment for local and indigenous communities, including jobs as:

  • Loggers
  • Truck drivers
  • Mill workers
  • Forest stewards

This ensures that forest-based development brings tangible socio-economic benefits to nearby communities.

Community Engagement in Sarawak

In Sarawak, Sustainable Forest Management (SFM) Liaison Committees are set up in certified forest areas. These committees include:

Local residents

Logging companies

Government agencies

Their goal is to ensure that all voices are heard and that local concerns are addressed throughout the logging and forest management process.

How does Malaysia Preserve & Protected Species?

Malaysia is home to some of the world’s most unique and biodiverse forests — and protecting them means protecting the wildlife that lives within. The country has put strong legal frameworks and practical conservation measures in place to safeguard these precious habitats.

Protected Forests Under the Law

Under the Malaysia Policy on Forestry 2021 and the National Forestry Act 1984 (Amended 2022), specific forests within the Permanent Reserved Forests (PRF) are gazetted as Protection Forests, where no logging is allowed. These include:

  • Forests on steep slopes or high altitudes
  • Wildlife and bird sanctuaries
  • Virgin Jungle Reserves
  • Recreational forests
  • Catchment areas and reservoirs
  • Forests set aside for federal use

Notable Conservation Sites

Danum Valley Conservation Area (Sabah)

A world-renowned biodiversity research hub

Maliau Basin (Sabah)

Known as Sabah’s “Lost World”, a pristine conservation area

Ulu Sedili (Peninsular Malaysia) & Semenggoh Forest Reserve (Sarawak)

Protected as Genetic Resource Areas for biodiversity conservation

Virgin Forests Preserved for Research & Nature

Virgin Jungle Reserves (VJRs) are untouched forests kept forever wild. They serve as:

  • Natural laboratories for ecological and botanical research

  • Reference points to compare logged and unlogged forests

  • Conservation sites for forest types like mangroves, peat swamps, dipterocarp, and montane forests

Strict Controls on Logging in PRF

Even in areas where harvesting is allowed, Malaysia enforces strict rules:

  • Trees below a certain size can’t be cut
  • Tree tagging ensures protected species are left untouched
  • Habitat safeguards under MC&I SFM (2021) include:
    • Protection of keystone species and salt licks
    • Wildlife corridors and buffer zones
    • High Conservation Value (HCV) forest areas

Protected Tree Species

In Peninsular Malaysia, 32 timber species are completely protected from harvesting. These trees are vital for wildlife habitats, medicinal purposes and cultural use by indigenous communities. They are never tagged for logging and remain untouched as part of Malaysia’s ongoing commitment to forest biodiversity.

Does Malaysia Have Laws to Protect Biodiversity?

Yes. Malaysia has clear laws to protect wildlife and their habitats. Wildlife reserves are set up both inside and outside forest areas, and various regulations help safeguard species and ecosystems. These efforts show Malaysia’s strong commitment to conserving its rich biodiversity.

Will Malaysia Change its Forest Policies if Global Demand for Tropical Timber Rises?

While no one can predict future policy changes, Malaysia’s long-standing commitment to sustainable forest management makes it unlikely that current practices will be reversed. As a parliamentary democracy, Malaysia’s forestry direction is guided by public mandate and international responsibility.

Malaysia has already built a strong foundation of laws, policies, and certification schemes developed over decades — balancing environmental protection with timber industry needs.

What is Malaysia Doing to Ensure Forests Last for Future Generations?

Malaysia is taking long-term action to make sure its forests are protected, productive, and sustainable for future generations. A wide range of programmes and research efforts support the core goals of Sustainable Forest Management (SFM) — keeping forests healthy while meeting timber demands.

Key Measures Taken

National Forest Inventory (NFI)

Conducted every 10 years since the 1970s to track forest size, health, and composition in Peninsular Malaysia.

Forest Monitoring with Technology

Use of Geographic Information Systems (GIS) and remote sensing to detect changes and support better planning.

Research on Forest Growth & Yield

Studies on tree growth and mortality under various harvesting conditions to improve forest planning.

Rehabilitation of Degraded Forests

Applied research helps restore heavily damaged areas, bringing them back to life.

Virgin Jungle Reserves (VJRs)

Set aside as untouched forests for scientific studies on plants, medicines, climate patterns, and genetics.

Sustainability Guidelines & Certification

Introduction of Malaysian Criteria & Indicators (MC&I) to standardise sustainable forestry and timber certification.

Reduced Impact Logging (RIL)

Methods that minimise damage during harvesting to protect forest structure and biodiversity.

Using Resources Wisely

Malaysia is also investing in R&D to use wood and forest resources more efficiently, including:

Coconut and oil palm trunks

Oil palm fibre

Kenaf (a sustainable alternative fibre crop)

Is Malaysia’s Timber Export Traceable & Legal?

Yes — Malaysia has a comprehensive system in place to ensure that all timber exported to global markets is legal and traceable.

Each log can be traced back to its forest of origin, thanks to strong documentation, monitoring, and compliance with Sustainable Forest Management (SFM) best practices.