Malaysian Timber Industry Board

Development of Forest Plantation Programme

 

Overview

In an effort to reduce pressure on native forest as a source for raw materials and to ensure its continuous availability for the domestic timber industry, the Government is encouraging the development of large-scale commercial forest plantations. In line with this policy, the Cabinet, in March 2005 gave an important task to the Ministry of Plantation Industries and Commodities (MPIC) to persue an agressive programme for the development of forest plantations in Malaysia.

Under this programme, the Ministry has planned to develop 375,000 hectares of forest plantation at an annual planting rate of 25,000 hectares per year for the next 15 years. Once successfully implemented, every 25,000 hectares of land planted is expected to produce 5 million cubic meters of timber.

Out of eight selected species, the programme is mainly focused on two species, namely Rubberwood (Timber Latex Clone) and Acacia spp. (mangium /hybrid). Other additional fast growing timber species recommended are Tectona grandis (Teak); Azadirachta excelsa (Sentang); Khaya spp. (Khaya ivorensis/ Khaya senegalensis), Neolamarckia cadamba (Kelempayan/Laran); Paraserianthes falcataria (Batai) and Octomeles sumatrana (Binuang). The latest information, non-timber species that also were selected in this program are five commercial bamboo species.

                     
                    

A Special Purpose Vehicle (SPV) known as Forest Plantation Development Sdn. Bhd. has been established by the Malaysian Timber Industry Board (MTIB) to manage the disbursement of soft loans, carry out auditing process of the plantation as well as to provide technical support and training for the programme. Local and foreign companies are eligible to participate in the Forest Plantation programme. There are financial facilities extended by the government for eligible companies : 

i)   Soft Loan