OVERVIEW OF FOREST LAW ENFORCEMENTIN EAST MALAYSIA

Prepared by:

Jay Blakeney, Forestry Consultant, Kuching, Sarawak, East Malaysia

March 2001

Highlights of this report were presented at a workshop on Illegal Logging in East Asia,

Sponsored by World Bank - WWF Alliance* in Jakarta, Indonesia, August 27-28, 2000

WWF Malaysia

WWF Malaysia wishes to express its sincereappreciation to the agencies and individuals whocollaborated on this study of forest law enforce-ment in Sabah and Sarawak. The names ofagencies and individuals consulted are listedbelow.SABAHSabah Forest Department Mr. Daniel Khiong- Director; Mr. Herman Angin - Deputy DirectorMr. Henry Solibun - Enforcement Division, Mr.Fredrick Kugan - Administration; Mr. BernardDalinting - Legal Section; Mr. Daim Balingi - For-est Management and SilvicultureRakyat Berjaya (Forestry Division of YayasanSabah) - Mr. Cyril Pinso - Forest ConsultantSabah - Germany (GTZ) Sustainable ForestManagement Project Mr. Lutz Kulenkampff -Project Director; Mr. Michael Kline - Ex ProjectDirector and Forestry ConsultantThe author would like to thank Mr. GeoffreyDavison, Director and Ms. Justin Vaz, ProjectManager of WWF’s Kota Kinabalu Office fortheir help in arranging meetings with parties inSabah.SARAWAKBorneo Pulp and Paper Sdn. Bhd. Mr. GlenMcNair, Forestry Liason OfficerHarwood Timber - Encik Abdul Hadi - Market-ing Manager; Supervisors and staff of SematanLog Import Depot; Tebebdu Log Import Depot;Lubok Antu Log Import Depot.Sarawak Forest Department Mr. Chong EkChoon - Director; Dr. Lee Hua Seng - DeputyDirector; Mr. Tan Yeah Kang - Deputy Director,Administration; Mr. Danny Chua, Planning, Man-agement & Registrations - Mr. Paul Ng - En-

Acknowledgments

forcement, Mr. Frankie Tieh Kah Siang - ForestProtection/Legal; Encik Yakob - Public Relations;Mr. Stephen Andel and Mr. Chung Kueh Shin -Model Forest Management Area (MFMA), Inter-national Tropical Timber Organisation (ITTO).Sarawak Timber Industry Development Cor-poration - Puan Aida - Information Officer, PuanMagdalen - LibrarianSarawak Timber Association - Mr. BarneyChan, Managing DirectorSarawak - German (GTZ) Forest Manage-ment Information Systems Project (FOMIS)- Dr. Hans Shilling - Forest Economist, MsJosephine Wong, GIS SpecialistUniversiti Malayasia Sarawak (UNIMAS), Dr.Sharifah Mariam AlHabshi, Lecturer, Faculty ofSocial Sciences.PENINSULAR MALAYSIAForest Research Institute of Malaysia-(FRIM)Encik Ismail Harun, Research Officer, NaturalForest DivisionUniversiti Putra Malaysia - Dr. Rusli Mohd.Dean, Faculty of Forestry; Tn. Hj. Amat RamsaYaman, Lecturer, Professor Dato Dr. Nik Mohd.Abdul Majid, Managing Director, University Busi-ness CentreThe author would also like to thank Mr. BaluPerumal, Head of Forest Conservation Unit andMs. Ginny Ng, Forest Conservation Officer, ofWWF Malaysia (WWFM); and Mr. ThomasWalton, Senior Environmental Economist ofWorld Bank Resident Staff in Indonesia (RSI),for the opportunity to co-author the MalaysiaCountry Paper on Forest Law Enforcement, andto participate in the workshop on Illegal Loggingin East Asia.

Acknowledgements .............................................................................................................. iiTable of Contents ................................................................................................................ iiiExecutive Summary .............................................................................................................. v

PART 1 INTRODUCTION.................................................................................................... 1

Background ............................................................................................................... 1

Purpose And Methodology ...................................................................................... 1

Malaysia - One Country, Three Regions ................................................................ 1Peninsular Malaysia ......................................................................................... 1Sarawak........................................................................................................... 2Sabah .............................................................................................................. 2

Forest Resources ..................................................................................................... 3Forest Area ...................................................................................................... 3Forest Types .................................................................................................... 3Commercial Timber Species ........................................................................... 3

Forest Sector Organization And Administration .................................................... 3

Importance Of Forestry In Malaysia’s Economy ..................................................... 4

Forest Policy And Legislation .................................................................................. 4Revisions and Amendments to National Forestry Policy and Act .................... 5

Issues And Developments ....................................................................................... 5Forest Management and Forest Industries Development ................................ 5Long-term Wood Supply for Forest Industries ................................................. 6Forest Products Trade ..................................................................................... 6

PART 2 FOREST LAW ENFORCEMENT ........................................................................... 7

Sarawak Forest Department - Enforcement Division ........................................... 7Organization of Forest Law Enforcement ........................................................ 7Staff Qualifications, Deployment and Training ................................................. 7Types of Forest Law Infractions and Their Underlying Causes ....................... 7Penalties .......................................................................................................... 8Reporting ......................................................................................................... 9Prevention ........................................................................................................ 9Detection ......................................................................................................... 9Suppression .................................................................................................... 9Fines ................................................................................................................ 9Summary of Forest Offences ........................................................................ 10Trends in Sarawak’s Illegal Timber Trade ...................................................... 10

Table of Contents

Strengthening Forest Protection and Enforcement ........................................11Sabah Forest Department - Enforcement Unit .................................................... 12

Organization and Staffing of Forest Enforcement Unit .................................. 12Staff Training .................................................................................................. 12Types of Forest Law Infractions ..................................................................... 12Penalties ........................................................................................................ 12Reporting ....................................................................................................... 13Prevention ...................................................................................................... 13Detection ....................................................................................................... 13Suppression .................................................................................................. 13Summary of Forest Offences and Penalties ................................................. 13Fines versus Seizure of Timber and Equipment ............................................ 14Trends in Sabah’s Illegal Timber Trade ......................................................... 14Strengthening Forest Enforcement Unit ........................................................ 14Constraints to Forest Law Enforcement ........................................................ 15

PART 3 CONCLUSIONS AND RECOMMENDATIONS ................................................... 16

Trans-border Timber Trade (Kalimantan, Sabah and Sarawak) ..................................... 17

References .......................................................................................................................... 18

The preliminary findings from this paper: ForestLaw Enforcement in East Malaysia, and its com-panion paper: Forest Law Enforcement in Pen-insular Malaysia were presented and discussedat an international workshop on Illegal Loggingin East Asia held in Jakarta, August 27/28, 2000.The workshop was attended by 100 forest prac-titioners from the East Asia region, with eachparticipating country presenting an overview ofthe status of Forest Law Enforcement. WWFMalaysia took the lead responsibility in prepar-ing the Country Paper on Forest Law Enforce-ment in Malaysia. This report comprises the EastMalaysia portion the Malaysia Country Report.Malaysia’s national goal of ensuring sustainablemanagement of its forests to maintain environ-mental quality, and a continued supply of qualityhardwood logs for its forest industries, can onlybe achieved by aligning timber harvesting rateswith forest growth rates and by renewing andprotecting the remaining forests. This paperdeals with one aspect of protecting the remain-ing forests - Forest Law Enforcement in EastMalaysia.Malaysia consists of three distinct geographicregions. Peninsular Malaysia is separated fromthe Borneo states of Sabah and Sarawak by a1,000 kilometer expanse of the South China Sea.Each of Malaysia’s 13 states has constitutionalautonomy over matters pertaining to land andforests. This has resulted in differences in for-est administration and legislation. Although manyaspects of forest resource administration andutilization policies are similar in all three regions,forestry’s importance varies between states. Forexample: in Peninsular Malaysia forestry is nowa minor component of the economy, while inSabah and Sarawak it still accounts for a largepart of economic activity and government rev-enue.The study showed that the dimensions of for-estry offences in Sabah and Sarawak are rela-tively small compared to the magnitude of thelegal timber trade. In each of the two states about300 cases of forest law infractions are detectedannually - an average of one case per day. Theannual volume of illegal timber seized in each ofthe East Malaysian States ranges from twentyto fifty thousand cubic meters - compared to theannual log harvest (1998) of five million m3 inSabah and eleven million cubic meters inSarawak.

Forest law infractions consist of two main types.1. Forest management offences, or breaches

of forest licence agreements, by the licenceholders (and/or their registered logging con-tractors), and

2. Illegal forestry activities by parties, whichhave no forest use rights in the area wherethe offence occurs.

Approximately 90% of forest law infractions aresettled through payment of fines to the StateForest Departments. The penalties (fines, im-prisonment, etc.) for various infractions of theForest Enactment or related regulations andguidelines are stipulated in state governmentdocuments, and are periodically up-dated.Cases, which are prosecuted in court, tend tobe the more severe ones, which the Forest De-partment wishes to use as an example to detersimilar activities in the future.Current legislation specifies fines ranging in se-verity with the gravity of the offence. Cases pros-ecuted successfully in the law courts, generallyresult in more severe penalties (fines and prisonsentences) than cases settled administrativelyby the Forest Department. For example, inSabah illegal removal of forest produce from aforest reserve is punishable by mandatory im-prisonment (one to twenty years) and a fine ofup to RM 500,000 ($125,000). These penaltiesare doubled for offences committed at night andfor repeat offences.The Forest Departments of East Malaysia havesufficient personnel, financial resources and thelegislative framework is adequate to reduce ille-gal forestry activity to an acceptable level. How-ever, a number of factors constrain their effortsto stop illegal logging.♦ Regional log supply shortages as a result of

over capacity in the wood processing sec-tor, lead to high log prices, which in turn fu-els demand for illegal logs. These logs areoften sold at lower cost and on “soft” creditterms, due to the risks involved and the factthat government forest charges have notbeen paid.

♦ The “easy money” aspects of illegal loggingattract organized crime and thug elements,who finance, protect and organize timbermarketing for small-scale illegal loggers.

♦ Historically, judgements on illegal forestrycases have been lenient. Cases were often

Executive Summary

dismissed on technicalities, or given a rela-tively minor penalty (fine). This has a demor-alizing effect on the officers investigating andpreparing cases.

♦ Many professional staff are engaged on atemporary basis. They suffer from a lack ofjob security. This negatively impacts theirresolve and initiative, as well as increasingtemptation to accept favors for ignoring theillegal forestry activities.

The agencies in charge of forest law enforce-ment in East Malaysia have suggested the fol-lowing measures be adopted to furtherstrengthen forest law enforcement.♦ Concentrate on building strong cases against

large, organized syndicates or networks ofillegal loggers, ie. don’t waste time and ef-fort going after “small scale” illegal loggers.

♦ Expedite apprehension of illegal loggers us-ing mobile strike forces to cut the time be-tween detection and taking action on illegalactivities. This increases seizures of timberand equipment and thus has a greater de-terrent effect.

♦ Improve surveillance, monitoring and en-forcement activities through the use of re-mote sensing satellite technology and geo-

graphic information services (GIS).♦ Refine the log tracking system to facilitate

detection and increase difficulty of falsifyingdocumentation. Use of computer technology(bar coded tags, labels, implants, sensors)

♦ Increase role and participation of forest li-cence holders, contractors, local communi-ties and other stakeholders in forest law en-forcement activities. eg. Appoint communityleaders as Forest Protection Officers tostrengthen enforcement of forest ordinance.

♦ Ensure judges appreciate severity and con-sequences of illegal logging in order that theirjudgements (fines, imprisonment) are se-vere, and act as a sufficient deterrent.

♦ Improve benefits and incentives for forestryofficers involved in law enforcement - par-ticularly those on temporary postings.♦ increase number of permanent posts for

forest law enforcement♦ improve insurance, pensions, medical

coverage, etc. for temporary postings.♦ reward system - proceeds from sale of

seized timber go to enforcement unit.♦ Increasing the numbers persecuted and pun-

ished after detection.

BackgroundMalaysia’s advantage in developing its forestrysector has been (and continues to be) the reli-ability and continuity of its raw material supply.Malaysia’s remaining natural forests are amongthe most important in the world. Malaysia is theworld’s largest, supplier of tropical sawlogs1,tropical sawn-wood and veneer and the secondlargest supplier (after Indonesia) of tropical ply-wood. (ITTO Annual Review and Assessment of theWorld Timber Situation, 1999)

However, annual forest depletion rates (due tounsustainable harvesting practices and landconversion) are high, compared to the area ofundisturbed natural forest remaining. Althoughforest harvesting rates have recently begun todecline2, clearing of forests for agriculture andurban-industrial development continues.Malaysia is fully aware of the need for effectiveforest management, conservation and develop-ment, not only to ensure a sustainable timber(and other raw material) supplies, but also tomaintain environmental stability, wildlife habitatand bio-diversity. Achieving sustainable forestmanagement is a commercial and national eco-nomic necessity, as Malaysia must maintain itscompetitive position in export markets, which areincreasingly demanding that forest productscome from sustainably managed forests.

Concern over the sustainability of forest exploi-tation, has led the government of Malaysia toexplore a number of policy, management, andinstitutional remedies to bring the sector into linewith national interest. Of particular concern areunsustainable logging practices and the largearea of forest lost each year to agriculture andother development projects. The national goalof ensuring a continued supply of quality hard-wood logs can only be achieved by aligning tim-ber harvesting rates with forest growth rates andby renewing and protecting the remaining for-ests.3 This paper focuses on forest protection -particularly forest law enforcement.

Overview of Forest Law Enforcement in East MalaysiaPART 1INTRODUCTION

Purpose And MethodologyThis paper was prepared for presentation at aworkshop on Illegal Logging in East Asia held inJakarta, August 27 – 28, 2000. It is aimed at pro-viding the workshop participants with overviewof Malaysia’s forestry sector, with emphasis onthe current status of forest law enforcement inthe East Malaysian States of Sabah and Sarawak,which are located on the north coast of Borneo.The study was undertaken during July andAugust 2000. In preparing this study the authorreviewed current literature (see References)and conducted interviews with stakeholders inSabah and Sarawak. (seeacknowledgements).Malaysia - One Country, Three RegionsMalaysia was formed when the 11 federatedMalay states on the Malayan peninsula joinedwith the territories of Sabah and Sarawak, onBorneo’s north coast, in 1963. Since thenMalaysia’s forest policy has been determined by3 separate bodies:1) Peninsular Malaysia Forest Department in

Kuala Lumpur;2) Forestry Department Sabah in Kota Kinabalu;

and3) Forest Department Sarawak in Kuching.Some aspects of forest resource and utilizationpolicies are common to all three regions. Forexample: all encourage forest-based utilizationand have forest policies that emphasize woodproduction over the non-wood potential of theforest. All three regions have, in the past, de-rived significant revenue from taxes related toforest products -especially timber export taxes.In recent years the importance of forestry in theeconomy of peninsular Malaysia has declined.However, forestry still accounts for a large partof Sabah and Sarawak’s government revenue.

1 Malaysia produces 80% of the tropical saw-logs traded internationally.2 Malaysia’s annual timber harvest declined from 40 million m3 in the early 1990s, to 30 million m3 in the mid-1990s, to 20 million m3 in 1999. FAO estimates Malaysia’s sustainable harvest to be 18 million m3. (State of World’s Forests - 1997).3 Observations on Malaysia’s forestry sector based on Forestry Sector Review conducted by World Bank - 1993.

Peninsular MalaysiaPeninsular Malaysia has less forest area and its

remaining forests are of generally poorer qual-ity than those of the Borneo States - Sabah andSarawak. Peninsular Malaysia’s economy hasdiversified - particularly during the past threedecades. Forest have been converted into ex-tensive areas of rubber and oil palm plantationsand large urban housing estates and industrialcomplexes have been developed to accommo-date a flourishing export-oriented manufactur-ing sector.Forestry now plays a relatively minor role inPeninsular Malaysia’s economy. Forests areincreasingly valued for their environmental ser-vices - to ensure water supply, prevent erosionand provide recreational opportunities for the 17million people (80% of Malaysia’s population)who live on the peninsula. The Permanent For-est Estate (PFE) is the main source of woodsupply. Most forests outside the PFE have beencut-over or converted to other land uses. Plan-tation timber - Rubberwood, Acacia and Sentang- is used increasingly in place of natural foresttimber.

SarawakThe state of Sarawak in East Malaysia (on theIsland of Borneo) has the by far the largest areaof forest of the 13 Malaysian states, with 68 per-cent of its land area (8.3 million ha) forested.Approximately 4 million ha of this forest has beendesignated as Permanent (production) ForestEstate (PFE)4 to ensure sustained raw materialsupplies for the state’s growing forest productsindustry. Sarawak’s forests are dominated bymixed dipterocarp forests, which are the domi-nant vegetation in the hilly interior of the state. Inaddition, extensive peat swamp forests domi-nate the wide coastal plains and lower reachesof Sarawak’s many rivers.The Sarawak Forest Ordinance (1958, revised1996) describes three types of forest land andthe procedures for administering them.1) Permanent Forest Estate (PFE) for

commerical forest harvesting and for indig-enous communities to hunt, fish and gatherforest produce for their own use;

2) Totally Protected Area (TPA) National parks,nature reserves and wild life sanctuarieswhere collecting forest produce, hunting andfishing is prohibited; and

3) State Land Forest (SLF) - areas not reservedas forests under the Forest Ordinance.

A large portion of Sarawak government’s rev-enue comes from the forestry sector,which employs in excess of 80,000 people. Asidefrom oil and gas, there are few areas in whichSarawak has an obvious comparative advan-tage. The major disadvantages to developmentin the state include high labor costs, unskilledlabor force, poor infrastructure and high trans-portation costs to international markets. From amacro-economic perspective, Sarawak hasgood reason to practice sustainable forest man-agement, to improve its protected area systemand to maintain its PFE, to ensure the long-termviability of its forest industries. It needs to pre-serve the viability of its timber industry in orderto provide time to diversify its economy by de-veloping alternative sources of livelihood - com-mercial agriculture, tourism, manufacturing, etc.In recent years government has taken steps toensure future timber supplies by reducing itsannual timber harvest and by establishing for-est plantations. Annual timber harvest in 1998was 11 million m3/yr, compared to 16 to 17 mil-lion m3/yr during the period 1995 – 97. In spite ofthe reduced harvest levels, the state’s naturalforests continue to decline in extent and qualitydue to: expansion of oil palm5 and pulp planta-tions6, hydro-electric reservoirs, shifting cultiva-tion, re-entry logging, and other activities relatedto the state’s economic development.To ensure sustainable log supplies and meet thegrowing demand for forest products, timber com-panies have been urged to consolidate their ex-isting timber concessions into unified blocks andset aside 20% of the area for development offorest plantations. To date the state has granted19 Licences for Planted Forest (LPF), coveringan area of about 1.4 million ha. (12% ofSarawak’s land area) (Sarawak Tribune July 6,2000, Article on Expansion of Forest Planta-tions).

Sabah

Sabah was blessed with some of the world’srichest rain forests. Over the last 20 years for-estry contributed an average of $1 billion per yearin foreign exchange earnings through forest prod-ucts exports. State revenue from forest conces-sions fees, logging taxes and forest productsexport taxes average $300,000 million annually-more than half of State Government revenues.The sector provides direct employment to 65,000

4 This includes areas which have already been gazetted and areas proposed for inclusion in the PFE.5 Large areas of forest have been cleared to achieve Sarawak’s targetted 1 million ha of oil palm plantation by 2010.6 Sarawak intends to becoming a major pulp and paper producer and has allocated 3 million ha for forest plantation.

Jay Blakeney 2

people.Heavy logging, followed in many cases by con-version to agriculture, severely depleted Sabah’sforests, which are no longer capable of contrib-uting the large timber volumes of the 1970s and1980s. During this period, annual log productionexceeded 10 million m3. Sabah’s timber harvestwas 5.2 million m3 in 1998 and 3.4 million m3 in1999. About half of this is from sustainable har-vesting in permanent forest reserves and half isfrom unsustainable forest clearing for agricul-ture. The forest sector’s share of governmentrevenues has declined, from 60 – 70% in the1970s and 1980s, to 30 – 40% in the late 1990s.The state government of Sabah has introduceda scheme to involve private enterprise in reha-bilitation and long-term management of theState’s forests. Logged over forests coving 2.7million ha has been allocated in 27 Forest Man-agement Units. In exchange for cutting rights,the unit managers employ professional forest-ers to prepare forest management plans, imple-ment low impact logging methods, and rehabili-tate degraded forests. The Sabah Forest depart-ment assumes responsibility for monitoring andenforcing compliance with the conditions of theFMAs.

Forest Resources

Forest AreaMalaysia’s forest area is about 18 million ha, or55% of the country’s land area. The extent offorest in each region varies considerably, froma low of 42% in the relatively densely populatedMalay peninsula to 60% to 70% in the lightlypopulated Borneo states. As a result each areatakes a different view of its forests and has dif-ferent issues to cope with.

Forest TypesAs shown in Table 1, slightly more than half ofMalaysia’s land area is covered by tropicalrain forests. These forests support a widerange of flora and fauna. Malaysia’s forestsinclude several distinct zones: mangrove for-

ests occupy coastal areas and river estuar-ies, peat-swamp forests occupy lowland ar-eas, inland from the coast; mixed dipterocarpforests cover extensive areas of the hilly inte-rior, heath (kerangas) forests occupy areas ofpoor and shallow soils and montaine forestsoccupy high elevation areas.Commercial Timber SpeciesMalaysia’s commercial tree species can bebroadly grouped into Light, Medium andHeavy Hardwoods and Softwoods. Table 2shows common commercial species in these4 classifications.Forest Sector Organization And Admin-istrationForest land is state owned and is administeredby individual State Forest Departments. Timberharvesting rights are allocated to private sectorfirms through a system of forest licences. Thesetimber concessions, as they are referred to lo-cally, are granted for periods of 5 to 20 years toindividuals and state entities. Forest licences aregenerally operated by large timber contractors,who harvest, process and market the annual logallotments. Some contractors pay a fee to theforest licence holder based on timber volumeharvested; others share log sales revenues withthe licencee. There are a number of combina-tions and variations of these arrangements.In the past Malaysia exported a large portion ofits timber as logs. However, in response to in-centives and legislation, most of the annual tim-ber harvest is now processed in domestically.Only Sarawak still exports significant quantitiesof logs. Most states have state-owned timbercorporations, which have acquired a number offormer privately-held forest licences. These stateowned forest licences operate under similar tim-ber contractor arrangements, to those describedabove. Individual state forest departments areresponsible for administering and managing for-est lands. Most forest departments have a num-ber of operating division which oversee variousaspects of forestry and forest land administra-

Table 1: Approximate Forest Area of Malaysia

Sources: Compiled from Forest Department Reports; H.C. Thang, 1995, Sustainable Conservation, Managementand Environmentally Sound Utilization of Tropical Rain Forest in Malaysia, and FAO State of the World’s Forests 1997

3 Overview of Forest Law Enforcement in East Malaysia

noigeR tserof%dnaaerAtseroFrevoc

aerAetatsEtseroFtnenamrePaerAtseroFfotnecrepasa

aisyalaMralusnineP )%8.14(ahnoillim5.5 )%08(ahnoillim5.4habaS )%0.16(ahnoillim5.4 )%87(ahnoillim5.3

kawaraS )%5.76(ahnoillim3.8 )%25(ahnoillim4.4aisyalaM-latoT )%5.55(ahnoillim3.81 )%76(ahnoillim4.21

sdoowdraHthgiL sdoowdraHmuideM)ialeP,ialuP(ainotslA )gniureK(supracoretpiD

)gnotuleJ(areyD )rupaK(sponalaboyrD)hopmileS,hopmiL,naraL(sulahpecohtnA )nawareM,lagnehC(aepoH

)nimaR(sulytsynoG )gnalauT,siragneM,gnapaT(aissapmoK)masA(arefignaM )sagneR(atulG

)gnauniB(selemotcO )gnatneS,uggnaR(athcaridazA)ayareS,itnareMetihW(aerohsaraP )gnalukgneM,gnabmeK(areitireH

)ipaleM,itnareMdeR/wolleY(aerohS )uggnaR(nordnedoisredooK)ritipeS(arodniS )sagneR(aeohrronaleM

sdoowdraHyvaeH doowtfoS)naileB(nolyxoredoisuE )naligneM,kayniMramaD,gnadniB(sihtagA

)ijnareK(muilaD)uabreM(aistnI

)malaMuyaK(eaecanebE)utaBnagnaleS(aerohS

)kaseR(acitaV

Table 2: Common Commercial Timber Species of Malaysia(Compiled from a Number of Publications on Malaysian Timber Species)

Jay Blakeney 4

tion. Typically Malaysian state forest departmentsare divided according to broad functions: forestmanagement planning, operations, forest li-cence administration, royalty assessment, rev-enue collection, administration form one broadgroup; while research, development and person-nel training form another group. Further divisionof responsibilities is based on the forest landclassification: production forests, protected ar-eas, research and community forests, etc.Typically forest departments have a number ofregional and divisional forest offices (DFOs),where all aspects of forestry and forest land areadministered.Forest protection and enforcement activities aregenerally the responsibility of a separate unit,under the forest management, operations andadministration functional group. Typically mostforest protection and enforcement staff are de-ployed at regional and divisional offices.

Importance Of Forestry In Malaysia’sEconomyDuring the 1980s and 1990s, Malaysia’s indus-trial sector grew rapidly. As a result, the primaryresource sectors, such as forestry, mining andfisheries, have declined in economic impor-tance. Forestry now accounts for 2% to 3% ofGDP (down from 5% in the early 1990s). Al-though Malaysia’s exports US$ 5 billion per yearof forest products, (up from US$ 2 billion in1985), forest products account for only 1.5% ofMalaysia’s export earnings, ranking fourth, be-hind: manufactured goods-80%+; oil palm prod-ucts-6%; petroleum and natural gas-5.5%; and

Tourism-4%. Nationally, the forestry and forestproducts sectors employ about 300,000, or about3% of Malaysia’s workforce of 9 million. Directgovernment revenue from forest resources inthe three regions is estimated at about US$500,000 million, or 2% to 3 % of total govern-ment revenue.Although forest revenues account for only a smallportion of national government revenue, the twoBorneo States depend heavily on forest revenuesto fund their administration and development. Forexample: Forestry accounted for 70% of Sabah’srevenue in the 1970s, 60% in the 1980s andslightly less than 50% in the 1990s. Sarawak isslightly less dependent on forestry due to richpetroleum and gas endowments.

Forest Policy And LegislationForest legislation in Malaysia (then Malaya) datesback to the 1920s and 1930s. As per Malaysia’sConstitution, Article 94(1), Schedule 9, the dis-tribution of power between the federal and stategovernments specifies legislative powers forforestry and land are the exclusive prerogativeof State governments. Regulations on forestsand land therefore have been developed by indi-vidual states in relation to their needs. There-fore any discussion of Malaysian forest policy orforest law must take into account differencesbetween the three regions -Peninsular Malaysia,Sabah, Sarawak.Development of a uniform Malaysian forest policyhas been a goal of the federal government sincethe 1970s, when the federal government con-vened a National Forestry Council (NFC) com-

5 Overview of Forest Law Enforcement in East Malaysia

prising the Chief Ministers of the thirteen statesand chaired by the Deputy Prime Minister. TheNFC served as a forum for the federal and stategovernments on problems and issues relatingto forestry policy, administration and manage-ment. In 1978, consensus on forest manage-ment and administration was reached and aNational Forestry Policy (NFP) was adopted. Itaffirms State responsibility for forest manage-ment but stresses that forest law enforcementshould be guided by the NFP. The NFP speci-fies that each state should maintain a minimumportion of its land as permanent forest reservesand that these forest reserves should be classi-fied according to their purpose – protection, pro-duction, amenity, etc. Protection forests are for-est areas above 1,000 meters in elevation and/or exceeding 18 degrees slope, which corre-sponds to the recommended limit for agricultureas defined by the National Land Council. Pro-duction forests comprise areas of less than 18degrees slope, below 1,000 meters elevation,and areas not suitable for agriculture. Amenityforests are dedicated to recreation, eco-tourismand developing forestry public awareness.

Revisions and Amendments to NationalForestry Policy and ActIn response, to increasing concern over contin-ued decline in forest extent and quality, the NFPwas revised in 1992 and the 1984 National For-estry Act was amended in 1993. The 1992 policyamendments emphasize conservation of biologi-cal diversity, involvement of local communities,and promotion of eco-tourism.The 1993 amendments to the Forest Act alsostrengthen forest law enforcement. Penalties forforest encroachment and illegal logging wereincreased from a maximum of RM10,000 and 3years imprisonment, to a maximum of RM500,000 and 20 years imprisonment, with amandatory imprisonment of at least one year.The amended act also provided for police andarmed forces surveillance of forestry activity,especially illegal logging and timber theft. Theamendments also included new regulations onreplanting, enrichment planting, extraction meth-ods and planning schedules for concessions.They also included conditions regarding restric-tion of exploitation rights, trade in non-timber for-est produce; protection of aboriginal rights to useforest resources; urban expansion and nationalparks. Malaysia’s forest policy is slowly begin-ning to recognize forests as multi-purpose re-sources - not exclusively as a source of timber.The 1993 National Forestry Act was endorsedby all state in Peninsular Malaysia. HoweverSabah and Sarawak (as provided for byMalaysia’s Constitution) retained their own for-est legislation as described in the following para-

graphs.

Sabah Forest Enactment (1968, and ForestRules 1969, amended to 1995) - The SabahForest Enactment and Rules prescribe all as-pects of forest administration, planning, manage-ment, development and regulation of the harvestof forest resources, forest revenue collectionand development of forest-based industries. PartIV of the Enactment specifies penalties and pro-cedures for dealing with forest offences. UnlikeSarawak (see below), where the Forest Depart-ment has jurisdiction over all forest land, Sabah’swildlife reserves, sanctuaries and national parksare managed by the Sabah Wildlife Departmentand Sabah Parks Department, respectively.

Sarawak Forest Ordinance (1954, amendedto 1996) - The Ordinance describes the threetypes of forestland and procedures for estab-lishing and managing them. The forest ordinancewas amended in 1996, to strengthen forest lawenforcement and to include provisions forplanted forests. Part VI (Section 68 – 93A) of theenactment prescribes penalties and proceduresfor dealing with infractions of the forest ordinance.Penalties are related to the severity of the of-fence and the value of the forest products. Theygenerally involve fines, (usually 10 times thevalue of the products involved) and imprisonment(2 to 5 years). Penalties for forest offences com-mitted at night and for repeat offences are doublethe normal penalty for that offence.

Sarawak’s National Parks Ordinance (1956)and Wildlife Ordinance (1958) complement theSarawak Forest Ordinance and are also admin-istered by the Sarawak Forest Department.

Issues And Developments

Forest Management and Forest Indus-tries DevelopmentSustainable forest management and develop-ment remain as the main emphasis for the Ma-laysian forestry sector, which faces three chal-lenges:1) reduce deforestation and forest degradation

through more effective conservation mea-sures and sustainable use of existing for-est resources.

2) increase the forest resource base throughreforestation and enhancing the productiv-ity of existing forest land.

3) consolidate and revitalize forest industries toenhance wood product values and thus in-crease returns to forest management bymaximizing the value of forest goods andservices.

Jay Blakeney 6

Long-term Wood Supply for Forest In-dustriesIn 1999 Malaysia’s log production was 22 millioncubic meters (m3). This is down from 33 millionm3 in 1995, and 40 million m3 in the early 1990s.Log production is expected to decline further inthe near future as stocks of commercial treesare exhausted. The sustainable annual log sup-ply from natural forests (18 million m3) and rub-ber and forest plantations (2 million m3) is esti-mated to be about 20 million m3 (FAO CountryReport Malaysia (1997).The declining wood production has become to-tally out of balance with the raw material require-ments of Malaysia’s wood processing industry.The installed capacity of primary wood process-ing equipment is 40 million m3, including: over1,000 sawmills, with an annual capacity of 24million m3; 160 plywood and veneer mills, withan annual log-input capacity 13 million m3; andmiscellaneous wood processing, with annual logcapacity of 3 million m3.The wood supply shortage is most serious inSabah, where the State’s industrial developmentpolicies in the 1980s and ’90s encouraged ex-pansion of domestic wood processing. Annuallog input capacity of the 300 wood processingmills is 16 million m3. Sabah’s annual timberharvest in 1999 was 3.4 million m3. The long-term sustainable production from the State’s 2.7million ha of commercial forest managementunits (FMUs) is estimated at 2.5 and 3 millionm3.The wood supply shortage described above hasresulted in pressure to continue over-cutting tokeep the mills operating. This has fueled a large(and growing) illegal logging trade, in order togenerate additional wood supply, over and abovethe sanctioned harvest levels.In recognition of this Government plans to re-structure the forest industry. By the year 2020,three-quarters of existing saw and plywood millsare to be eliminated and the efficiency and pro-ductivity of the remaining mills is to be improved.Although these plans are laudable, there is littleor no detail on how they will be implemented.Meanwhile the mills continue to operate and thegap between the legally available wood supplyand industrial wood requirement of the woodprocessing industry widens.

Forest Products TradeOnly the state of Sarawak exports logs. Althoughlog exports have declined in recent years (1996- 7 million m3; 1997 - 6 million m3; 1998 - 5 mil-lion m3, log exports still represent a sizeableportion of Sarawak’s annual log production - 45%

in 1998.The National Timber Certification Council, Ma-laysia (NTCC, Malaysia) was established in 1999to establish and administer an independent thirdparty Malaysian timber certification program.NTCC proposes to conduct assessments of thesustainability of Malaysia’s forest managementunits, including assessment of the adequacy offorest law enforcement, and to issue sustain-able forest management certificates, as is doneby forest certification bodies such as SGS For-estry and SmartWood program of the Rain For-est Alliance, which have been accredited by theForest Stewardship Council (FSC).

Increasing forest products prices in Malaysia,during the past two years, has spawned a grow-ing trans-border forest products trade, mainly insawn-timber and rattan. These products areshipped from Sumatra to the West Coast ofPeninsular Malaysia, and from Kalimantan toMalaysian Borneo (Sabah and Sarawak), whereforest product prices are significantly higher. (SeeTimber Imports from Kalimantan, Indonesia to theEast Malaysian States of Sabah and Sarawak atback of report)Malaysia is attempting to control this trade bydocumenting the wood shipment and checkingto see that forest products imports have the ap-propriate Indonesian authorization. For example:Sarawak requires that forest products shipmentsfrom Indonesia be accompanied by Indonesiancustom’s authority documents, indicating theyhave checked and approved for exported.The higher prices in Malaysia, which have fos-tered this illegal trade, stem from Malaysia’sstronger economy more liberal trade policies andhigher standard of living. Although not much canbe done to alleviate the fundamental economicdifferences between the two countries, forestproducts trade liberalization Indonesia may serveto domestic forest product prices in that coun-try, thereby reducing incentives for wood ship-ments to Malaysia.

7 Overview of Forest Law Enforcement in East Malaysia

PART 2 FOREST LAW ENFORCEMENT

Sarawak Forest Department - Enforce-ment DivisionOrganization of Forest Law EnforcementIllegal felling and illegal export of logs are of seri-ous concern to the Forest Department Sarawak.For the past decade a separate Forest Enforce-ment Division has been responsible for preven-tion, detection and suppression of forest law in-fractions. The division consists of two units. Oneis responsible for forest protection and legal as-pects and the other for field enforcement activi-ties.

Staff Qualifications, Deployment andTrainingThe Sarawak Forest Department’s EnforcementDivision which oversees forest protection andlaw enforcement, has a staff of 184. Enforce-ment Division staff consists of an Assistant Di-rector; 2 Senior Enforcement Officers, 20 – 25Forest Officers, 25 – 30 Forest Rangers, and120 – 130 Forest Guards. In total, the Enforce-ment Division accounts for 9% of total ForestDepartment staff.There are about 30 enforcement staff at ForestDepartment Headquarters, 30 at Sibu RegionalOffice; 46 at Bintulu Regional Office, 56 at MiriRegional Office and 22 at Kuching Regional Of-fice. Regional staff coordinate forest protectionand law enforcement activities of the ForestDepartment’s nine administrative divisions.Forest officers assigned to the EnforcementDivision receive training in forest protection andprevention. Those assigned to the investigationand prosecution branches also receive trainingin investigation techniques and procedures forpreparing cases for legal prosecution.

Types of Forest Law Infractions and theirUnderlying CausesIn Sarawak, infractions of the Forest Ordinancegenerally fall under two main types.1) Management OffencesOffences committed by Forest Licence Holdersand Logging Contractors within their approvedforest licence areas. Such offences are gener-ally detected and acted upon by the Department’sForest Planning, Management and Registra-tions Division. These offences are generallypunished by fines, which vary according to theseverity of the offence.

Examples of Management Offences byLicencees and Logging Contractors

♦ Logging in coupes which have been closed;♦ Logging in coupes without valid Permission

to Enter Coupe (PEC);♦ Harvesting of Undersized and Protected

Trees by Licencees;♦ Harvesting of species not covered by licence

document (Eg. Belian Licence holder cuttingMeranti trees, etc.)

Factors contributing to Management Of-fences

♦ Forest enforcement officers depend onLicencees for access to logging areas.Licencee’s staff can ensure officers do notobserve illegal activities.

♦ Harvesting small-sized trees and trees ofprotected species increases volume andthus reduces unit costs of fixed expenditures- roads, camps and other infrastructure;

♦ Anticipation that the area will be excised fromthe PFE for conversion to Oil Palm planta-tions (in which case felling of under-sizedtrees would then be sanctioned)

♦ Sarawak’s log tracking system starts at for-est landing not felled tree, thus enabling ille-gally harvested timber to be mixed in withtimber from sanctioned logging operations,land clearing operations. It is difficult to verifylog sources (logs can be substitute logs be-tween felling blocks, or forest licences. Forexample, an operation which exceeds itsannual quota may divert logs to one that is“under-quota”.

♦ Fines are insufficient to deter illegal cutting.eg: a RM200 per tree ($50) fine for fellingtrees illegally may be less than the tree’smarket value (eg. 2-3 m3 of high valuemeranti @ RM 500/ m3 = RM 1,000 to RM1,500). It is often profitable to pay the finebecause the value of the timber is higherthan the fine. (ITTO, 1998)

♦ Low risk of detection. Illegal activities are of-ten in remote locations. Forest Departmentofficers are often only able to inspect activi-ties at the main log pond.

♦ Illegal logs can be quickly converted tosawn-timber, which is mixed with timberfrom legal (documented) sources, therebydestroying the evidence.

♦ Difficulty in reconciling log input of woodprocessing mills with their product output. Datacollection by government agencies depends onreporting by the mills. Recovery rates can bealtered to disguise timber from illegal sources.

2) Illegal Forestry ActivitiesOffences committed by forest licence holders,logging contractors, etc. outside of theirsanctioned operating areas, or by other partieswho have no timber harvesting or forest userights. Such illegal activities are dealt with by theDepartment’s Enforcement Division.Depending on the type and severity of theoffence, they are either fined by the ForestDepartment, or the case is filed for prosecutionby the Attorney General’s Department. If theprosecution is successful, the offender may befined (generally heavier than fines imposed byForest Department) and/or imprisoned.Examples of Illegal Forestry Activities♦ Logging by licencees or contractors in ar-

eas outside of their approved forest licence;♦ Illegal felling and forest encroachment for

agricultural cultivation;♦ Illegal logging by unauthorized parties in for-

est reserve, state forest, protected area♦ Blockades, sabotage and other forms of civil

disobedience by native land rights claimants,designed to hinder operations of forestlicencees or logging contractors.

♦ Transporting, processing, marketing of ille-gally harvested timber.

Factors contributing to, or facilitating IllegalForestry Activities:

♦ Relatively low investment and high profitscompared to other illegal activities such assmuggling of cigarettes, alcoholic bever-ages, etc. which requires investment instock.

♦ Relatively weak enforcement, therefore lowrisk of being detected, apprehended.

♦ Easy money and illegality attracts thugs, whofinance and protect illegal loggers.

♦ High demand for low cost logs in local mills,due to over-capacity.

♦ Profits on processing of Illegal timber arehigh because it is priced below market value.It may also be available on credit terms.Whereas legal logs are more costly becausethey have paid royalty charges and must bepaid for in advance.

PenaltiesPenalties for specific infractions are specifiedunder Section VI of the Sarawak Forests Ordi-nance (1958, amended 1996) along with proce-dures for dealing with various infractions of for-est law. Punishment is commensurate with theseverity of the case and whether or not it issettled out of, or in, court. Fines are generallybased on the quantity and value of timber in-volved. Eg. RM 200 ($50) per stump for illegallyfelled trees. If the case is settled between theForest Department and the offender, the fine isgenerally twice the value of timber involved plusthe royalty applicable. If the case goes to courtthe penalties can be much more severe, eg. 10times the value of the timber, plus a RM 50,000fine, plus a jail sentence of up to 5 years.Examples of penalties which apply to varioustypes of forest law infractions are listed below.♦ Unlawful trespassing in a Forest Reserve -

fine of RM 50 ($12).♦ Obstructing a forest road - 2 years in prison

and RM 6,000 ($1,500) fine plus RM 50 ($12)per day for every day the road remainsblocked.

♦ Illegal felling in Forest Reserves and Pro-tected Areas - fine of RM 200 ($50) perstump. (Eg: unauthorized tree felling; fellingunder-size trees, felling protected species.

♦ If the case goes to court and the offender isfound guilty, he may have to pay a fine to theForest Department of 10 times the value ofthe forest produce, plus aRM50,000 fine to the court and up to 5 yearsimprisonment. Eg. Illegal timber export, orexceeding the prescribed annual productionlimit.

♦ False use of government licence marks - 2years in prison & RM5,000 ($1,250) fine.

♦ Unlawful possession of forest produce 5years in prison & RM 50,000 ($12,500) fine.

♦ If the forest produce has no governmentmark, an additional fine of 10 times its value.

♦ Compensation for damage caused by com-mission of an offence against the forest or-dinance. Compensation - 10 times value orRM 2,000 ($500) which ever is greater.

♦ All penalties are doubled if the offence oc-curs at night or for second conviction.

♦ The arresting forest officer can also removepersons from the forest who he believescommitted forest offences and seize theirvehicles and equipment and demolish build-ings and other property used in committingthe offence.

Jay Blakeney 8

9 Overview of Forest Law Enforcement in East Malaysia

ReportingSummary data on the number of forest lawcases, fines collected, court cases prosecuted,volume and value of timber seized, etc. is re-ported in the Forest Department’s annual report.Information on: current cases (names of indi-viduals and companies, quantity and value of tim-ber) etc. is published regularly in local newspa-pers.

PreventionPrevention of illegal forestry activities is donethrough a combination of increasingly sophisti-cated log recording and tracking systems andthrough public information campaigns.

The Forest Department log tracking system hasrecently been computerized, facilitating detec-tion of illegal activities. Experiments are under-way to introduce bar-coding or electronic im-plants to improve log tracking and impede falsi-fication of documentation.Local media, collaborate with the Forest Dept.’sPublic Relations Unit to report on campaignsagainst illegal logging, urging the public to reportincidents of forest law infraction.Recently a large number of village leaders havebeen deputized as wildlife protection officers,which has increased the Forest Department’spresence in the field, providing a valuable addi-tional point to disseminate public relations infor-mation, as well as a source of intelligence onillegal wildlife and forest activities.

DetectionDetection of forest law offences relies on infor-mation from a number of sources. Forest Li-cences cover most forest land in Sarawak, withthe exception of Protected Areas, thereforelicencees and their logging contractors are animportant source of information. Forest Licenceholders advise the Forest Department’s Enforce-ment Division of illegal timber poaching on theirlands. In addition to information provided bylicencees and contractors, the EnforcementDivision’s personnel at regional forest officesalso receive information on forest law infractionsfrom other Forest Department officers workingin the field. Eg. monitoring compliance with for-est management plans and measuring and grad-ing timber for assessment of royalty charges.Additional information is gathered from a varietyof anonymous sources including local residentsand officers of other government departments.In 1993, the Forest Department implemented ascheme to award monetary incentives to thosewho successfully uncover contraband timber.

Permanent forest products checking stations aremaintained on the lower portions of the main riv-ers along which logs are transported - Baram,Tatau and Kemana. These stations operate 24hours per day, checking shipments to ensurethey originate from legitimate sources and thatthey have transit permits and documents indi-cating royalty has been assessed, and paid.SuppressionField staff of a forest licence or timber contrac-tor generally report forest law infractions to theircompany headquarters, which reports these in-cidents to the regional forest office. Once illegalforestry activity has been reported, the forestdepartment officers investigate.Depending on the severity of the infraction, theymay enlist the assistance of police officers, infurthering the investigation, making arrests, seiz-ing timber, seizing equipment (saws, tractors,trucks, etc.) and preparing court cases againstthe perpetrators.One useful tactic in suppression has been toconcentrate on the main perpetrators rather thanspending a lot of time and effort on small offend-ers. Several large, illegal logging syndicateshave been identified and put on continuing sur-veillance. In one case a repeat offender was puton “restricted residence” and prohibited to re-side in or visit areas where he traditionally ex-erted influence on illegal logging.

FinesAccording to Part VI of the forest ordinance, thestatutory fine for theft or destruction of commer-cial timber is 10 times the value of the produce(as determined by the director). For example: a10 m3 truck load of meranti (Shorea spp.), wouldbe fined 10 times its market value - RM 400 perm3 ($100/ m3) - or about RM 40,000 ($10,000).Trucks and other equipment used in illegal log-ging operations are seized and held pendingpayment of fines. These would appear to beadequate penalties to deter illegal logging.

However, in reality fines are often not collected,because the perpetrators can not be appre-hended. The average fine actually collected (to-tal fines collected divided by total timber volumeseized) in the four year period between 1995 and1998 was equivalent to RM 100 ($25) per m3.The total fines collected amounted to RM 9.3million ($2.5 million), while the market value oftimber seized was RM 32 million ($8 million), ortriple the value of fines. This highlights one ofthe main problems in forest law enforcement.That is, the tendency for timber poachers tomove their equipment out of the area and aban-don the illegal logs once detected. The only so-

Table 3: Summary of Forest Offences and Penalties (1995 - 1998)retemaraP 5991 6991 7991 8991 89-5991 %/egarevA

).oN(detceteDsesaC 132 903 972 882 701,1 772m(emuloVrebmiT 3 )*ewr 000,51 000,52 000,33 000,02 000,39 000,32

**)MR(eulaVetamixorppA lim5MR .lim8MR .lim21MR lim7MR lim23MR 000,8MRmesaC/emuloVegarevA 3 3m56 3m08 3m021 3m07 3m58

)MR(esaC/eulaVegarevA 000,22MR 000,52MR 000,34MR 000,42MR 000,92MR)rebmuN(deniFsesaC 712 892 352 262 030,1 752

)MR(seniFlatoT .lim3.1MR .lim2MR .lim4MR .lim2MR lim3.9MR lim3.2MR)MR(esac/eniFegarevA 000,6MR 000,7MR 000,51MR 000,7MR 000,53MR 057,8MR

m/eniFegarevA 3 )MR( 78MR 08MR 021MR 001MR 873MR 611MRdetucesorPsesaC 41 11 62 62 77 91

denruojdA/lairTgnidneP 8 2 61 31 93 %15nwardhtiW/dettiuqcA 4 7 3 2 61 %12

)deliaJ/deniF(detcivnoC 2 2 7 11 22 %82Source: Forest Department Sarawak, Annual Reports 1995-1998. * Round-wood equivalent ** Based on avg. logvalue

lution to this problem is quick, decisive and con-fidential follow-up action on all cases detected.The shortfall in collection of potential fines hastwo negative impacts on enforcement. First thedeterrent effect fines is lost and second, lessfunds are available.

Summary of Forest Offences

As shown in Table 3, the Sarawak ForestDepartment’s Enforcement Division docu-mented 1,107 incidences of forest offences in-volving 93,000 m3 between 1995 and 1998. Therewere an average of 277 infractions per year, in-volving 23,000 m3 (log equivalent), with a aver-age annual value of RM 8 million ($2 million).The average case involved 85 m3 (log equiva-lent) of timber with a value of about RM 29,000($7,000).

The vast majority of forestry offenses (93%) weresettled through payment of a fine. About 7% ofthe cases detected led to prosecutions. Theseare the more serious infractions of forest law.Court cases are prepared for trial by the forestdepartment and police and then passed on tothe State Attorney General’s Department for pros-ecution. Of the cases prosecuted between 1995and 1998, 21% were acquitted, 26% were foundguilty and fined or jailed, and 53% remain unre-solved (pending, appealed, suspended, etc.).Of the 38 cases filed for prosecution in 1999, 5pleaded guilty, 2 were convicted, 2 were strickendue because the warrant for their arrest couldnot be served, and the other cases are in vari-ous stages of preparation or prosecution.Two factors determine whether a case is settledthrough payment of a fine, or referred to the courtfor prosecution. These are: seriousness of thecase (volume of timber involved, nature of the

infraction, etc.); and the deterrent effect that asuccessful prosecution could have in geographicareas where illegal logging is rampant.Trends in Sarawak’s Illegal Timber TradeDuring Asia’s 1997-98 financial crisis demandand price of timber declined. This resulted in adecline in illegal forestry activity. In 1999-2000,timber prices recovered as shown in Table 4.Accompanying these price increases, there wasan increase in the incidence of forest law infrac-tions. During the first quarter of 2000, 8,055 logs(23,000 m3) were confiscated, compared to7,600 logs (16,700 m3) during the whole year of1999. The level of prosecution also increased,with 14 cases tried and 11 cases pending trialduring the first quarter of 2000, compared to anaverage of 19 cases tried annually between 1996and 1998.The average annual volume of illegal timber de-tected (23,000 m3/yr) is small (0.15%) comparedto the 15 million m3 average annual volume oflegal timber harvested (1996-98). As shown inTable 5, Sarawak exported an average of $2 bil-lion worth of forest products annually, during theperiod. Comparing this to the annual value of il-legal wood confiscated ($2 million), it would ap-pear that illegal logging is relatively insignificant- equivalent to 0.1% of the legal forest productstrade. Two alternative conclusions that can bedrawn from the above results:1) illegal logging in Sarawak is a relatively

minor problem;2) the quantity of illegal timber detected,

documented and confiscated representsonly a portion of the total illegal timbertrade.

Jay Blakeney 10

11 Overview of Forest Law Enforcement in East Malaysia

Table 4 - Average Export Price of Logs (Rm/m3) By Species (1996 - 2000)seicepS 6991 7991 8991 )yaMot(0002

itnareM 163 683 643 055rupaK 953 893 453 065gniureK 453 014 524 095

utaBnagnaleS 683 683 364 066hotayN 472 403 672 094

awasreM 043 704 284 035doowdraHthgiLdexiM 452 822 722 003

ritepeS 822 572 092 662m/MR(ecirPgoLegarevA 3) 013MR 843MR 453MR 874MRm/MR(ecirPgoLegarevA 3) 013MR 843MR 453MR 874MR

Source: Statistics of Timber and Timber Products Industry - Sarawak Timber Industry Development Corp.(1999)

There is insufficient data available to determineconclusively which of these conclusions morevalid. The fact that illegal logging continues tobe a problem is an indication that significant vol-umes of illegally harvested timber are still ableto avoid detection and seizure.

Strengthening Forest Protection andEnforcement

In 1992 the Preventive and Protection Branch ofthe Sarawak Forest Department was strength-ened through formation of a Forest EnforcementDivision, which is responsible for collection ofintelligence, detection and investigation of infrac-tions of the Sarawak Forest Ordinance. The unit

also works closely with the police to apprehendperpetrators of forest law infractions, as well toconfiscate their equipment and timber.The Enforcement Division (as it is now called)was initially staffed by regular Forest Departmentofficers. However, in recent years the unit wasstrengthened by the addition of ex-police offic-ers, including some from the Criminal Investi-gation Division (CID). There are several reasonsfor this:♦ Firstly, ex-police officers are more experi-

enced in criminal investigation procedures.♦ Secondly, through their police and judiciary

contacts they can facilitate cooperation of

Table 5: Sarawak Forest Products Export Earnings 1996-98 (RM 000)stcudorPtseroF 6991 7991 8991

sgoL 327,592,2 726,503,2 153,937,1rebmitnwaS 658,821,1 328,369 375,538

doowylP 586,280,2 797,521,2 878,499,1reeneV 743,414 347,515 843,414slewoD 653,81 459,02 956,03

sgnidluoM 503,71 851,32 247,43draoBdetanimaL 712,84 037,95 791,98

spihcdooW anG 164,9 223,21FDM AN 806,96 223,58

draoBelcitraP AN 039,33 744,12draobkcolB 296,6 512,8 254,41

gniroolFteuqraP AN 855,5 867,31*stcudorPdooWrehtO AN 527,82 427,92stcudorPdooW-latoT 873,910,6 923,071,6 387,513,5tnelaviuqE$SUlatoT noilliB4.2$ noilliB2$ noilliB4.1$

stropxEllA-latoT 188,924,81 009,980,12 009,621,02stropxEfo%dooW %33 %92 %62

Source: Statistics of Timber and Timber Products Sarawak 1999, Sarawak Timber Industry Development Corpora-tionNote: 1996 RM 2.5 = $1; 1997 RM3 = $1; & 1998 RM 3.8 = $1 *Includes: Poles, piles, sleepers, pallets, windows, doors,charcoal, sawdust, wood waste, etc.

these agencies in investigating, preparingand prosecuting forest law cases.

♦ Thirdly, ex-police officers are more effectivein dealing with the ruthless tactics of orga-nized crime groups which often fund andprotect illegal loggers7.

Prosecution of forest law cases, formerlyhandled by Forest Department lawyers, hasbeen tranferred to the State Attorney General’sdepartment, where lawyers and judges, with ex-perience in forest law, are now responsiblefor trying such cases. This has served to reduceattempts, by offenders and their associates, toinfluence the outcome of illegal forestry cases.Since 1993, the Forest Department has initiateda system of rewards to teams of police and For-est Department Officers who successfully ap-prehend illegal loggers and seize their timber andequipment. Under the reward system half of theproceeds from the sale of illegal timber andequipment are given to the team of officers whoworked on the case. This has proven to be astrong incentive for increasing initiative of forestlaw enforcement officers.In order to prevent re-acquisition of seized logsand equipment by illegal loggers at auction sales,the timber and equipment is often moved to an-other district, where the auction sale is con-ducted. If it cannot be relocated, then the timberand equipment can be rendered unusable.Recently the Forest Department has been au-thorized to utilize helicopters from the SarawakTimber Industry Development Corporation(STIDC) to conduct forest law enforcementwork.

Sabah Forest Department - EnforcementUnit

Organization and Staffing of Enforce-ment UnitThe Sabah Forestry Department has a total staffof approximately 1,600, of which approximately130 are professionals and semi-professionals.Approximately 1,300 staff have permanent po-sitions, while 300 work on temporary contracts.Forty percent of the professional staff are per-manent employees, while 60% are on tempo-rary contracts. Forest law enforcement is car-ried out as part of ongoing forest managementand protection activities of the forest department.The Sabah Forestry Department has recently

restructured its forest law enforcement units andstrengthened its capability to respond to illegalforestry activity. The enforcement unit overseesprevention, detection and preliminary investiga-tion, while the legal division prepares and pros-ecutes cases involving offences against forestlaw. Enforcement operations are the responsi-bility of a Senior Assistant Director (Enforcement)who reports directly to the Director of Forestryat Forestry Department headquarters inSandakan. Field enforcement is carried out byenforcement units located at each of five regionalforestry offices. Regional enforcement officerssupervise the activities of forest officers, guards,rangers, and support staff at more than 20 dis-trict forest offices located throughout the state.The legal division consists of a lawyers onsecondment to the Forestry Department fromthe Sabah State Attorney General’s Department.

Staff TrainingForest officers assigned to the Enforcement Unitreceive training in forest protection and preven-tion. They also receive training in investigationtechniques and procedures for seizing and se-curing evidence, and for preparing cases for le-gal prosecution.

Types of Forest Law InfractionsIn Sabah there are three main types of forestlaw infractions.♦♦♦♦♦ Infractions against the Forest Enactment

by forest licence holders, logging contrac-tors outside of their sanctioned operatingareas and by other parties who do not havetimber harvesting or forest use rights.

♦♦♦♦♦ Breaches of Forest Licence Conditionsby Forest Licence Holders and Logging Con-tractors, within their approved forest licenceareas.

All illegal activities are dealt with by the ForestDepartment’s Enforcement Unit and are pun-ished by fines, imprisonment or a combinationof the two. Penalties for specific infractions arespecified in the forest enactment as well as inindividual forest licences.

Penalties

Part IV of Sabah Forest Enactment 1968 speci-fies penalties and procedures for forest offences.In addition, each forest licence includes a sepa-rate schedule of penalties that apply to“Breaches of Licence Conditions”.

7 These elements wage ruthless intimidation campaigns against forest enforcement officers — terrorizing the them and their families.Newspaper articles document cases of personal injury and property damage involving stoning, arson and attacks with acid,samuai swords etc. directed at officers who attempt to enforce forest law.

Jay Blakeney 12

13 Overview of Forest Law Enforcement in East Malaysia

Punishment is commensurate with the severityof the case and the volume of timber involved,duration of the infraction, etc. eg. RM 500 perlog; 3 times log export royalty; RM 1000 per de-tection; or RM 1000 per day during which theinfraction continues.Fines range from as little as RM 100 ($25-$50)per log, for felling on steep slopes orremovingtimber without a property mark or re-moval pass. Abandoning logs and failing to havetimber check-scaled are punishable a fine equalto 2 to 3 times export royalty rate. Seriousbreaches such as failing to submit a loggingprogress map, cutting in areas where permis-sion has not been granted are punishable byfines of RM 5,000 ($1250) per month.

Stiffer fines apply to offences against the ForestEnactment 1968 and other laws (up toRM500,000.00 and prison sentences of up to 20years. Cancel For example: illegal logging andremoving of forest produce from a forest reserveis punishable by a mandatory imprisonment fora term of not less than one year but not exceed-ing 20 years and a fine not exceeding RM500,000.00.

Reporting

Regional forest department offices receive re-ports of illegal forestry activities from regionaland district staff and from the public and theseare reported to Forest Department Headquar-ters daily. Reports show details of each infrac-tion detected and the status of investigation.Weekly summaries are prepared by the head ofthe enforcement unit and forwarded to the di-rector.Summary data on the number of cases de-tected, fines collected, court cases prosecuted,volume and value of timber seized, is reportedin Forest Department annual reports. The presspublishes frequent information on cases of for-est law infractions.

PreventionPrevention of illegal forestry activities is donethrough a combination of:♦ forest department’s log recording and track-

ing system facilitates detection of illegal for-estry activities as well as ensuring efficientand complete revenue collection;

♦ inspections of wood processing operationsincluding log-input versus product output;

♦ rules and regulations which make illegal ac-tivity more difficult and detection easier (ex-ample: prohibition of timber transport at night);

♦ assistance from police, media other agen-

cies including the Anti-corruption Agency;♦ public information campaigns in local media

including articles on illegal forestry activities,urging the public to report forest law infrac-tions and providing names and telephonenumbers of Forest Department officers. Thepublic is urged to report non-cooperative of-ficers.

DetectionDetection of forest law offences relies on a widevariety of information sources. These include:forest department staff, forest licence holdersand their logging contractors, anti-corruptionagency and the general public. The majority ofthe 300 cases of forest law infractions are de-tected annually come from forest departmentofficers who are continually in the field, monitor-ing compliance with forest management plans,measuring and grading timber for assessmentof royalty charges. The second major source ofinformation comes from local residents and of-ficers of other government departments, includ-ing the marine police, and anti-corruptionagency. Monetary rewards are offered to thosewho provide information leading to successfuldetection and suppression of illegal activity.

SuppressionField staff of a forest licence or timber contrac-tor generally report forest law infractions to theircompany headquarters, which reports these in-cidents to the regional forest office. Once illegalforestry activity has been reported, ForestryDepartment officers must investigate within 24hours. Depending on the severity of the infrac-tion, they may enlist the assistance of police of-ficers, in making arrests and in seizing timberand equipment (saws, tractors, trucks, etc.) usedin the illegal activity. Following arrest and sei-zure, the forest officers (sometimes with assis-tance from the police) prepare the investigationpaper for further court action against the perpe-trators. Court cases are prepared for trial by thedepartment. Prosecution is by lawyers on sec-onded to the Forestry Department by the StateAttorney General’s Department.

Summary of Forest Offences and Penalties

Of the 47 cases prosecuted, 39 have been com-pleted and the remaining 8 cases are pending.As shown in Table 6, 400 forest law offenceswere reported and investigated by Sabah For-estry Department’s Enforcement Division in1999 and first half of 2000. The majority, of thecases (78% of cases reported) involved fines,warnings, etc. About 12% of the cases detected(47 out of 400) were of a more serious natureand led to prosecutions.

Table 6: Summary of Forest Offences and Penalties (1999 - 2000)retemaraP 9991 )flahts1(0002

).oN(detagitsevnI&detropeRsesaC 203 89m(denoitcuA&dezieSemuloVrebmiT 3 )*ewr 000,23 000,42

)MR(euneveRselaSnoitcuA lim2.5MR .lim3.1MResaC/emuloVegarevA m3 m601 3 m542 3

)MR(esaC/)selasnoitcua&enif(eulaVegarevA 088,71MR 562,31MRtnemtrapeDtseroFybdeltteSsesaC 462 98

)MR(seniFlatoT noillim5.0MR etelpmoCtoNataDdetucesorPsesaC 83 9

Source: Sabah Forestry Department, Internal Reports on Forestry Law Enforcement. *rwe = roundwood equivalent.

During 1999 and 2000 (1st half) investigation offorestry offences led to seizure of 20,000 logsand flitches (56,000 m3). RM 560,000 ($150,000)in fines were collected and auction sales ofseized wood and equipment generated revenuesof RM 6.5 million ($1.7 million). The average caseinvolved 140 m3 of timber and fines or seizuresof RM 17,500 ($460).

Fines versus Seizure of Timber andEquipmentThe aggregate value of fines collected in 1999and the first half of 2000 was RM 560,000.($147,000). Based on the volume of timberseized during this period, (56,000 m3) this rep-resents only RM 10 ($2.60) per m3. The marketvalue of the timber seized is RM 300 ($75) perm3. The value of fines collected is insignificantcompared to the timber values involved. Thereason for the inadequacy of the fines is that finesare only collected on a relatively small amountof the timber seized. In most cases the partiesresponsible cannot be identified and appre-hended. Therefore fines do not act as a deter-rent to stop illegal logging.The Forestry Department has found a more ef-fective deterrent is to seize the timber and equip-ment used in the illegal activities and apply for acourt order to dispose of the goods (by auctionsale) before they deteriorate or are recoveredby the poachers. Where auction sale is not prac-tical, due to remote location, etc., and there is adanger that the perpetrators may recover theseized goods, timber is can be rendered unus-able and equipment immobilized, at the discre-tion of the field officer in charge of the case.

Trends in Sabah’s Illegal Timber Trade inSabahThere are mixed signals on whether illegal for-estry activity is increasing or decreasing. Gen-

erally, one would expect illegal logging to in-crease when there are timber supply shortagesand log prices are increasing. Sabah’s log sup-ply declined from 5.2 m3 in 1998 to 3.4 millionm3 in 1999. This decline in log supply was ac-companied by increased log prices.In spite of these trends, the number of casesreported of illegal forestry activity declined. (98reported infractions in the first half of 2000compared to 302 reports of illegal activity in1999).Prosecutions also declined. (38 cases, involv-ing 150 persons, in 1999; compared to only 9cases, involving 17 persons, in the during thefirst half of 2000.)Αlthough the number of cases detected andprosecuted is declining, the volume of illegal tim-ber seized increased. During the first half of 2000,there were 11,175 logs and flitches (32,000 m3)seized. In the whole year of 1999, 12,200 logsand flitches (39,000 m3) were seized.During recent years, the volume of illegal timberdetected annually ranged from 30,000 to 50,000m3 per year8. This is about 1% of the total an-nual timber harvest of 3 to 5 million m3. In valueterms, Sabah produces RM 1 billion ($270 mil-lion) worth of timber annually. Illegal timber seizedannually is valued at RM 10 million ($3 million),or about 1% of the legal forest products trade.The fact that illegal logging continues, and thatthe volume of wood seized is on the increase, isan indication that significant volumes of illegallyharvested timber are avoiding detection and sei-zure.

Strengthening Forest Enforcement UnitThe Sabah Forestry Department’s EnforcementUnit has been strengthened since early 2000 withnew requirements for daily reporting of illegal for-estry activity and posting of forestry officers at

8 32,000 m3 in 1999 and 24,000 m3 during the first half of 2000

Jay Blakeney 14

15 Overview of Forest Law Enforcement in East Malaysia

major wood processing mills to reconcile prod-uct output with incoming timber supply ship-ments.

Linkages with other government agencies, suchas Malaysia’s Anti-corruption agency, police andState Attorney General’s Department are alsobeing strengthened. In addition, field inspectionshave been increased to ensure that forestry of-ficers are carrying out their responsibilities ac-cording to prescribed procedures.

Constraints to Forest Law EnforcementAccording to the Sabah Forest Department’sEnforcement Division, personnel, financial re-sources and the legislative framework are suffi-cient of reduce illegal forestry activity to accept-

able levels. However a number of factors con-strain efforts to stop illegal logging.

♦ A large portion of the professional staff (60%)are hired on temporary basis and thereforesuffer from a lack of job security, which nega-tively impacts tηεir resolve and initiative, aswell as increasing temptation to accept fa-vors for ignoring illegal activities.

♦ Large over-capacity in wood processing sec-tor results in constant shortfall in log supply,which drives a thriving market for illegal logs.

♦ In the past jυδgements on illegal forestrycases were often lenient. This demoralizedofficers investigating and preparing cases.However recently penalties have been moresevere.

PART 3 CONCLUSIONS AND RECOMMENDATIONS

The overview of forest law enforcement in EastMalaysia illustrated that the level of illegal log-ging in the two states is small (in the order of1% or less) compared to the legal wood prod-ucts trade.The study highlights a number of measures be-ing implemented to strengthen efforts to com-bat illegal logging in the two East Malaysianstates. These measures have led to recent in-creases in apprehensions, seizures and pros-ecutions. However, many of the underlyingcauses of illegal logging remain.The following are suggested improvements,from the agencies in charge of forest law en-forcement, to further strengthen forest law en-forcement.♦ Concentrate on strong cases against large,

organized syndicates or networks of illegalloggers, ie. not to waste time and effort go-ing after “small scale” illegal loggers.

♦ Expedite apprehension of illegal loggers us-ing mobile strike forces to cut the time be-tween detection and taking action on illegalactivities. This will increase seizures of tim-ber and equipment and thus have a greaterdeterrent effect.

♦ Improve surveillance, monitoring and en-forcement activities through the use of re-mote sensing satellite technology and geo-graphic information services (GIS).

♦ Refine existing computerized log trackingsystem to include log tracking from thestump or felling block, rather than log pond.Use bar coded tags or implant technology

currently used to detect retail shop lifting toincrease the difficulty of falsifying documen-tation.

♦ Increase the role and participation of forestlicence holders, contractors, local commu-nities and other stakeholders in Forest LawEnforcement activities. A programme simi-lar to that adopted to strengthen enforcementof the Wildlife Ordinance could be consid-ered. Ie. appointing community leaders aswildlife protection officers.

♦ Ensure that judges understand the severityand consequences of illegal forestry activi-ties in order that their judgements (fines,imprisonment) are severe, and act as a suf-ficient deterrent.

♦ Improve benefits and incentives for forestryofficers involved in law enforcement - par-ticularly those on temporary postings.♦ increase number of permanent posts for forest law enforcement♦ improve insurance, pensions, medical coverage, etc. for those on temporary postings.♦ refine and strengthen the (performance- based) system of rewards (portion of proceeds from sales of seized timber and equipment going to enforcement team members.

Increase the penalties (fines, imprisonment, etc.)for forestry law infractions. Attempt to standard-ize penalties with other states (as per NationalForest Act).

Jay Blakeney 16

17 Overview of Forest Law Enforcement in East Malaysia

Transborder Timber Trade(Kalimantan, Sabah and Sarawak)

1) Estimated Timber Trade Kalimantan to SarawakThree Timber Import Depots of Harwood Timber Sdn. Bhd.* receive and transship about50,000 m3 month (about 500,000 m3/ annum) of rough sawn cants, as shown below:

Sematan Depot (Sea transit) - 20,000 – 30,000 m3 per month 250,000 m3/annumTebedu Depot (Land transit) - 10,000 – 20,000 m3 per month 150,000 m3/annumLubok Antu Depot (Land) 5,000 – 10,000 m3 per month 100,000 m3/annumTotal - Documented Timber Imports +/- 500,000 m3/annumEstimated - Un-documented Timber Imports +/- 250,000 – 500,000 m3/annumTotal Timber Imported from Kalimantan to Sarawak 0.75 – 1 million m3/annum

* A subsidiary of Sarawak Timber Industry Development Corporation (STIDC)

2) Estimated Timber Trade Kalimantan to Sabah 0.75 – 1 million m3/annum (see below)Source: Harwood Timber Sdn. Bhd., Jalan Satok, Kuching, Sarawak, East Malaysia

==========================================================================

British Broadcasting Corporation (BBC) News ServicesArticle on Trans-border Wood Theft between Indonesia & Malaysia

Indonesian Official On Evidence Of Ille-gal Logging By MalaysiansSamarinda: Aerial and satellite imagery of theEast Kalimantan forests showed roads leadinginto Malaysia being used by logging businessoperators. “Evidence of timber looting - such asaerial photos, logging tracks and heavy equip-ment - is clearly there, yet so far nothing is be-ing done about this activity, which is causinglosses to the country,” according to RismanSitumeang, secretary of the East KalimantanIndonesian Reformist Timber Association, asquoted by Antara news agency , in Samarindaon Saturday. “Theft of forest timber in the EastKalimantan-Malaysia border areas Has beengoing on for a long time. It shows how weak thesecurity situation is in those areas,” he said. Ina visit to the border area, a regional assembly(DPRD) delegation found a network of tracksmade to support timber extraction... After re-ceiving a contribution of 5bn rupiah from the In-donesian PlywoodAssociation (Apkindo) to help eliminate illegal tim-ber felling and removal, Forestry DepartmentSecretary-General Suripto told reporters inJakarta last Wednesday (21st June) that officials

had arrested two spies from Malaysia, who wereconducting surveillance in the area of timbersmuggling. Suripto said the spies, caught in EastKalimantan, had stated that the illegal timberremoval involving Malaysians had been going onfor six months and was under the protection ofthe Malaysian armed forces (ATM).He estimated the quantity of smuggled timberfrom East Kalimantan at 80,000 – 100,000 cu.mper month, 150,000 cu.m. per month from WestKalimantan and 70,000 cu.m. per month fromRiau. Data for Sorong was not available. DuringOperation Tarakan last May, Kostrad Army Stra-tegic Reserve Command troops in Sabah-EastKalimantan (Nunukan District) found heavyequipment, ammunition, a tent camp, a dieselfuel tank,piles of logs to be smuggled out, and a campmess bearing the Malaysian army insignia.Suripto was therefore determined to form a jointIndonesian-Malaysian fact-finding team to inves-tigate the theft of timber in the border area. Hesaid that the Malaysian ambassador to Indone-sia, Dato Rastam Mohd Isa, had reacted posi-tively to the proposal.

Source: BBC News Service, June 2000

References

Amarjit Kaur (1998) A History of Forestry inSarawak. Modern Asian Studies, Volume32, Issue 1, dated Feb 1998. pp 117-147

British Broadcasting Corporation (BBC) NewsService; June 2000, Article on IllegalTrans-border Wood Trade Indonesia andMalaysia.

Department of Environment and Natural Re-sources, Legal Affairs Office, QuezonCity, Philippines, Primer on Illegal Log-ging

FAO (1997): Asia Pacific Forestry Sector Out-look Study; Commentary on ForestPolicy in the Asia Region – Indonesia,Malaysia, New Zealand, Papua NewGuinea, Philippines, Thailand, WesternSamoa; Rome

FAO (1997): Asia Pacific Forestry Sector Out-look Study; In Depth Country Study: Ma-laysia

FAO (1998): State of the World’s Forests 1998,Food and Agriculture Organization of theUnited Nations, Rome, Italy

FAO (1998b): FAO Yearbook of: Forest Prod-ucts, FAO Forestry Series No.3, Foodand Agriculture Organization of the UnitedNations, Rome

ITTO Annual Review & Assessment of TheWorld Timber Situation, 1999,Yokohama, Japan

Sabah Forestry Department - Internal Reports(1999/2000) on Forest Law Enforcement

Sabah Government Press - Forests Ordinance(1968 and Forest Rules 1969, amendedto 1995), Kota Kinabalu, Sabah.

Sarawak Forest Department - Annual Reports(1996-1998), Kuching

Sarawak Forest Department - Forestry inSarawak Malaysia (1992), Kuching

Sarawak Forest Department - Forestry Statis-tics (various years), Kuching

Sarawak Government Press - Forest Ordinance(1958, amended to 1996), Kuching

Sarawak Timber Industry Development Corpo-ration (STIDC) - (1999) Statistics of Tim-ber and Timber Products Sarawak,Kuching, Sarawak, East Malaysia

Sarawak Tribune (July 6, 2000) Article on Ex-pansion of Forest Plantations.

Thang H.C. (1995): Sustainable Conservation,Management and EnvironmentallySound Utilization of Tropical Rain For-

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