Sabah Recorded RM5.3 billion From Timber

Sabah has been a pioneer in sustainable forest management (SFM) through a smart partnership with the private sector since 1997 when the long-term Sustainable Forest Management License Agreement (SFMLA) was created. SFMLA has helped in the protection and management of Sabah's vast forest reserves. It has contributed significantly to the state's economy through the logging sector and timber industry and improving the living standards of local communities.

Under SFMLA, Sabah has collected RM5.3 billion in timber royalties between 1999 and 2023 - averaging an annual revenue of RM213 million - and it has created 40,000 jobs for Sabahans. "To date, 1.4 million hectares of Class II Forest Reserves in Sabah are licensed to 43 SFMLA concessionaires," Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor, said.

“The Forestry Department reviews the progress annually. Nine licenses have been revoked for failure to comply with the terms and conditions.” Under the Forest Plantation Development Action Plan 2022- 2036, 18,000 hectares of forest plantation per year are targeted for planting. In March 2025, Sabah received an Appreciation Certificate from the Ministry of Natural Resources and Environmental Sustainability as the third highest state in Malaysia for achieving new gazetted protected areas between 2021 and 2023 (after Johor and Sarawak).

The CM’s message was delivered on 9 May 2025 at the Forestry Appreciation event at the Sabah International Convention Centre, Kota Kinabalu. A total of 32 SFMLA concessionaires receive the Compliance Certificate for their achievement in the 2024 Annual Work Plan.

Hajiji said that for achieving and meeting national and international standards, Sabah had received RM26.45 million from the Federal Government under Phase One of the Ecological Fiscal Transfer (EFT) Fund. "The fund would add value to Sabah's effort to increase its Totally Protected Area (TPA) to 30 per cent,” Hajiji added. “Sabah has already gazetted 2.012 million hectares TPA, which is 27.15 per cent of the state's total area. In line with the 2018 Sabah Forest Policy and Sabah Maju Jaya Development Plan, Sabah now needs 211,000 hectares to achieve 2025's 30 per cent TPA goal.”

The Forestry Department is preparing a proposal to gazette a few more critical protected areas under Section 5A of the 1968 Forest Enactment to ensure that Sabah hits the TPA target by 2025. In addition, the State Assembly approved an amendment to the 1968 Forest Enactment to grant the Forestry Department absolute authority to regulate forest-based carbon credit trading activities. The amendment specifies, among others, the regulation of forest carbon activity and ensures that revenues derived from the forest carbon credit activity will go directly to the state.

State Secretary, Datuk Seri Panglima Sr Safar Untong, delivered CM’s speech.