Shin Yang Groups of Companies - BAHAU KAYO Forest Management Unit (T-3433)

Shin Yang Industries (Btu) Sdn Bhd
Bahau Kayo Forest Management Unit (T-3433)
Public Summary

Forestry Policy Statement

Map of Locality

(I) Background and Boundary
The Bahau-Kayo Forest Management Unit (FMU) T-3433 covers an area of 32,973 ha(s), its operable area is 32,055 ha(s) and the remaining 691 ha(s) is Terrain IV / Buffer Zone, water catchment and High Conservation Value(s) area. Bahau-Kayo FMU area is divided into 25 coupes with sizes ranging from 813 ha(s) to 1,715 ha(s) as prescribed in chapter 1. It covers part of the Permanent Forest (PF) under Linau PF, Bahau PF and Balui PF. The Bahau -Kayo FMU is previously under the Linau Protected Forest (part 1 and part 2) of Sg. Bahau and Sq. Maralang, Batang Balui Protected Forest which is harvested by Jeliga Sdn. Bhd. under FTL No.T/32l7 and Kenyalang Indah Sdn. Bhd. (transferred to Usama Industries Sdn. Bhd.) under FTL No. T/3218 both issued on 10th July, 1989 respectively and thereafter, issued to STIDC for both FTL No. T/3433, a 5-coupes license which was issued on 29" July,2004 and FTL No. T/3554, a 10-coupes license on 18“August, 2010. By the time, the Ocarina Development Sdn. Bhd. and Song Logging were the sole and exclusive logging contractor for both FTL Nos. T/3433 and T/3554 respectively. FTL Nos. T/3433 and T/3554 were subsequently renewed and expired on 28* July, 2022 and 17‘ August, 2021 respectively. Following, the T-3554 was finally partly (estimated 14, 909 ha(s) ) amalgamated with T-3433 with new total of size 32,746 ha(s) become the later Bahau-Kayo FMU under FTL 3433. While, the recent contractor for the FMU is Shin Yang Sdn Bhd who has experienced in sustainable forest management unit and MC&I(SFM) certification.

Physical Features
The terrain of proposed Bahau-Kayo FMU is within hilly/mountainous area of Upper Sg. Bahau and Upper Sg. Malarang. The bulk of the proposed FMU is made up of hilly/mountain terrain with altitudes ranging from 1,000 feet/305 m to 5,000 feet/1,524 m above mean sea level (amsl).. Most of the FMU area was covered by the Hill mixed - dipterocarp forest (MDF).

Based on data recorded at Belaga, the mean annual rainfall at FMU area was 3,617 mm. There is no resettlement area inside the FMU area. The proposed Bahau-Kayo FMU is classified as Permanent Forest (PF) in the region of Linau PF, Bahau PF and Balui PF. Most of the FMU area is covered by the mixed - dipterocarp forest (MDF).

a) Related to HoBs

Bahau-Kayo FMU is partially within or near the Heart of Borneo (HoB) areas.
The proposed FMU area is set back 23-25 km from the Malaysia (Sarawak) - Indonesia (Kalimantan) border.
Reference: Map 3 shows the HoB area in Sarawak.
FMU T 3433 covers approximately 59% (19,478 ha of 32,746 ha) within the HoB area.
Compliance is maintained with Sarawak Government Policy and Forest Department Sarawak requirements.
Requirement: Obtain Forest Management Certification in HoB areas.
Goal: All long-term timber licenses to be certified by 2022 and extended to year 2025.
Reference: DF’s Circular No. 4/2018, dated 22nd May, 2018.
Shin Yang’s Forest Management Policy (Clause 10) reflects a commitment to these standards.

a) Forest Condition Function Zoning

Protected zone:

Based on the revised and approved General Plan (GP) and the areas containing specific High Conservation Value (HCV) as identified during HCV assessment, few areas as below were identifying as protected area within Bahau-Kayo FMU:

Any area surrounded along by the permanent water course will be conserved as riparian buffer zone. The riparian buffer zone widths determined by the water course width & water catchment with about 392 ha(s);
A Kerangas Forest about 55 ha(s);
Area identified as very steep slope (Terrain IV) with about 120 ha(s),
Area identifies as HCV such as the saltlick area which covers about 14 ha(s).
Area identifies as HCVF area which served as undisturbed and partially disturbed for reference as continuous in research studies , refuge and breeding sites as well as timber tree seed study and conservative of genetic diversity which about 91ha(s)

Production areas

The revised and approved General Plan (GP) indicates a total of 25 re-entry coupes have been identified within the forest timber license area of T/3433 with production area/ operable area is about 32,288 ha(s).
The production area is also include proposed 75 1PSP Plots with about 75 ha(s).

Other areas
Water catchment at coupe 12 is refer to old gravity –feed water source for old wtk camp and it is no longer active. However, the FMU continue to conserve it with about 13 ha(s). The water source could be used in future if the FMU base camp may shift in future during the FMU harvesting coupe sequence moved to western region in future.

b) Management Objectives

Bahau-Kayo FMU is to have a multiple-use forest for economic, social and environmental purposes, while ensuring that the productive capacity of the forests for both goods and services is maintained and/or enhanced;
To sustain production and revenue of high value timber based on an annual allowable cut;
To monitor the growth through Continuous Forest Inventory (CFI) and ensure rate of harvest shall not greater than estimated regrowth of the residual stand;
To ensure the actual harvesting area is not more then the Annual Harvesting Coupe or Annual Cutting Area (ACA) as calculated based on Net Harvestable Production Area divided by Cutting Cycle (ha/ yr. )= 1,282 ha;
To carry out appropriate treatment during the plan period, in areas where potential commercial species are present for the purpose of regeneration and enhancement of their growth performance to ensure sustainability in future cycle;
To ensure available of DF circular 6/99, SFC 1/2021 &2/2022 and should be strictly complied; g. To adhere strictly to Reduce Impact Logging during harvesting ;
To protect areas of scenic, historic, geological or ecological significance through the establishment of HCVF demarcation at the FMU that will be remained undisturbed/ buffered;
Evaluation to the impacts of harvesting activities to the stakeholders e.g. workers and local community within the FMU area through comprehensive SIA;
To provide a safety environment to the staffs as well as their family ; &
To respect the right of the local community and workers.

c) Forest Resources & Forest Research

a) Tree Stocking

Average Tree Stocking: 53 trees per hectare (DBHOB 30.0 cm and above).

• Species Composition:
- Dipterocarps: 27.5%
- Non-Dipterocarps: 58.7%
- Non-Commercial Species: 13.8%

• Tree Size Distribution:

63% of Dipterocarps are under DBH 49.9 cm.
63% of Non-Dipterocarps are under DBH 44.9 cm.

• Diameter Class Distribution (per hectare):

Dipterocarps: 38 trees (27.5%)

Non-Dipterocarps: 81 trees (58.7%)

Non-Commercial: 19 trees (13.8%)

b) Volumes

Average Timber Volume: 141.49 m³/ha (DBH 10.0 cm and above).
Volume by Species Group:
Dipterocarps: 41.84%
Non-Dipterocarps: 49.76%
Non-Commercial Species: 8.4%
High Volume Transects: Highest recorded volumes are 95.68 m³/ha (Transect No. 64) and 95.59 m³/ha (PSP No. 70).
Harvestable Trees Volume:
Dipterocarps and Non-Dipterocarps (DBH 45.0 cm+): 55.19 m³/ha
Dipterocarps only (DBH 50.0 cm+): 38.21 m³/ha

c) Common and Protected Tree Species

109 Species Identified at Proposed Bahau-Kayo FMU.
Key Common Species:
Dipterocarps: Shorea spp., Dryobalanops spp.
Others: Artocarpus spp., Pterospermum spp., Macaranga spp.
Protected Species: Include Ensurai (Dipterocarpus oblongifolius), Engkabang (Shorea spp.), Menggris, Tongkat Ali.

d) Non-Timber Growing Stock

Non-Timber Products: Rattan, bamboo, palm, wild vegetables/fruits.
Primary Uses: Baskets, hats, mats by local communities.
Popular Species: Kayu Belavan (Tristaniopsis sp.), Kayu Tekalit (Lithocarpus sp.)

(e) Wildlife Survey

Herpetofauna: Includes five frog species and four reptile species, with three frog species endemic to Borneo.
Avifauna: 64 bird species across 27 families, with 11 species protected under WPO 1998. Common birds include Barbets, Bulbuls, and Tailorbirds.

b) Yield Regulation

The Bahau-KAyo FMU involves the selective, re-entry timber harvesting of all hill forest in accordance with the term and conditions of the Forest Management Plan approved by Forest Department dated 09th February 2023;
The area will be worked over a period of 25 years in one cutting cycle and common Yield Regulation are as below;

• Purpose of Yield Regulation:

To establish an Annual Allowable Cut (AAC) or prescribed annual yield for the planning period.
To determine the optimal timing for an economically viable harvest based on growth projections.

• Harvest Criteria:

Dipterocarp species: Minimum DBH of 50 cm.
Non-Dipterocarp species: Minimum DBH of 45 cm.
ensure that all species listed as Totally Protected under the Wild Life Protection Ordinance 1998 would not be felled.

• Management Method:

Uses an area control method by dividing the operable (net production) area by the length of the cutting cycle.
Cutting cycle is 25 years, as specified in the Policy Direction on Forest Management Certification in Sarawak (FMC).

• Coupe Arrangement:

Revised structure includes 25 coupes to optimize harvest distribution.

• Goal:

To align with sustainable forest management practices and support forest certification standards.

c) Rate of Annual Harvest

a) Harvesting Efficiency: Assumed at 87%

b) Growth Rate:

MAI growth for Bahau-Kayo FMU: 1.68 m³/ha/year
Based on adjacent Linau FMU research showing a similar MAI at 1.90 m³/ha/year

c) Diameter Cutting Limits:

Dipterocarps: ≥50 cm DBH
Non-Dipterocarps: ≥45 cm DBH

d) AAC Estimation:

Formula: [1.68 m³/ha x 32,288 ha] x 0.8 x 0.9 x 87% = 33,978 m³ annually
Equivalent to 2,832 m³/month

e) Annual Cutting Areas (ACA):

Revised ACA for Bahau-Kayo FMU: 32,055 ha / 25 years = 1,291 ha/year

f) Harvest Guidelines:

Annual coupe of harvest must not exceed 1,282 ha/year
Volume and damage limits: 33,978 m³/year or 26.32 m³/ha/year

g) Monitoring and Review:

Growth will be reassessed in a 5-year review cycle to ensure sustainability

d) Harvesting Techniques

The Bahau Kayo FMU involves the selective cutting, re-entry timber harvesting of all hill forest in accordance with the term and conditions of the approved FMP of Bahau Kayo;
The FMU is also practicing the Reduced impact logging (RIL) for ground based harvesting system using modified excavator with winch are used to minimize impact to the residual stand and to the soil and water value. The FMU is to ensure that the proper planning of roads and harvesting operation is of utmost importance in pre-harvesting stage;
The well-planned and constructed road network will enable forest harvesting operation in the FMU area to be carried out in a proper and economical way during the whole duration of the licence and results in long term economic benefits for the licensee.
The RILs systems adopted by FMU practicing the Reduced impact logging (RIL) which involves pre-harvesting, harvesting and post harvesting planning and related activities.
The Monitoring and Control within the FMU during the pre-harvesting, harvesting and post harvesting is executed by Forestry Agency and FMU management team will follow the guidelines of pre-felling and post harvesting activities, quarterly EMR monitoring and SIA monitoring.

e) Forest stock and Growth

1. Total Expected Growth:

Growth over 25 years for 13 PSPs: 167.75 m³/ha
Calculated by subtracting initial volume (169.06 m³) from 25-year volume (336.81 m³).

2. Extractable Volume:

Expected extractable volume at 25% recovery of total growth: 41.9375 m³/ha
Close to gross harvestable volume (41.58 m³/ha).

3. Mean Annual Increment (MAI):

Defined MAI growth: 1.6775 m³/ha/year (calculated by dividing 41.9375 m³ by the 25- year cutting cycle).

4. Mortality and In-Growth Rate Adjustment:

Adjusted MAI growth with 30% mortality and in-growth consideration:
i. Dipterocarps: 1.6164 m³/ha/year
ii. Non-Dipterocarps: 1.6714 m³/ha/year

5. Sustainable Growth Comparison:

Falls within the tropical rainforest sustainable growth range of 2.0–2.5 m³/ha/year (Denis Alder, 2008).

f) Environmental Assessment & Quality Monitoring

Environmental Impact Assessment (EIA) required by MC&I (SFM) to maintain forest ecological functions.
Forest harvesting can have negative impacts on natural and socio-economic environments.
Precautionary measures and proper mitigation are necessary to minimize impacts.
Identified stages of potential impacts: preparatory stages, felling and harvesting, abandonment stages.
EIA Assessment Report/ EMP for FMU T-3433 is approved on date 11/10/2023 under (16) NREB/600-3/2F/120(vol.1) ;

Impact During Preparatory Stages (Site Clearing and Preparation)

Soil Erosion & Sedimentation: Road construction can cause soil erosion and sedimentation in water, harming aquatic life.
Water Quality: Runoff from construction can lead to water pollution and reduced light penetration.
Flora & Fauna: Limited impact expected, though illegal activities may increase due to roadwork.
Air Quality & Noise: Temporary, localized air and noise pollution from machinery.
Generation of Construction Waste: Minimal, as temporary camps will be reused and dismantled after use.
Socio-economics: Job opportunities created during road and bridge construction.

Impact During Felling or Harvesting Stage

Soil Erosion & Sedimentation: Logging in hilly areas increases soil erosion and sediment runoff into streams.
Flora & Fauna: Loss of biological resources, though the area has been previously logged.
Air Quality: Temporary air pollution from machinery.
Noise: Temporary noise pollution; minimal long-term effects except possible hearing impairment for workers.
Socio-economics: No local community conflicts as no settlements are within the project area.

Impact During Abandonment Stage

Minimal environmental impacts if abandonment is done carefully.
Local economy may be affected, but new projects may offset this impact.

Impacts on Risks of Logging Pertaining Forest Carbon Emission & Climate Change

Forests play a critical role in carbon sequestration; logging affects carbon storage.
Logging operations contribute to carbon emissions and climate change impacts (temperature rise, sea level rise, etc.).

Mitigation Measures

Mitigation measures aim to reduce or prevent significant environmental impacts.
EIA approval was granted by the Environmental Quality Sarawak (EQS), with ongoing monitoring.

Mitigations or Opportunities to Reduce Emissions from Logging Harvesting

Decrease Avoidable Waste: Minimize tree biomass waste, adopt reduced impact logging.
Reduce Impacts from Skid Trails:
- Limit trail length, density, and width.
- Reuse old skid trails when possible.
Reduce Impact from Haul Roads:
- Plan roads with minimal width and length; avoid excessive construction.
- Use permanent steel bridges over wooden ones.

4. Reduce Impact from Landing Sites:

Limit the size of landing sites and avoid excessive clearing.
Reuse old sites and minimize soil movement near waterways.

Environmental status as at 2024
Water Monitoring Record latest 2 Quarters of EMR, Year 2024

Schedule waste management status as at 2024:
Record of SW305, SW 306, SW312 & SW 410 produced for year 2024

Apart from the river quality, the consultant also did perform monitor the compliance against EIA Terms and Condition, where the results shows that the Bahau-Kayo FMU is satisfactory compliant against the EIA Terms and Conditions.

[MC&I 8.2c]

g) High Conservation Value(s)

1. HCV 1 :
The report confirms the presence of HCV 1 (High Conservation Value 1), which includes species with significant conservation value. This category focuses on fauna and flora monitoring to maintain biodiversity, listing rare, threatened, and endemic species identified in the FMU area. Specific monitoring and management practices were recommended to enhance biodiversity conservation for HCV 1, including WLPO (Wildlife Protection Ordinance) awareness and targeted fauna and flora monitoring. (HCV ASSESSMENT REPORT).

2. HCV 2: Large landscapes identified as critical to conservation. PRESENT

3. HCV 3: Rare ecosystems noted within the FMU.

4. HCV 4: Ecosystem services under critical situations, especially concerning water quality.

5. HCV 5: Local communities’ reliance on resources within the FMU.

6. HCV 6: Cultural values of the area recognized as significant.

Fauna Monitoring from Re-assessment HCV

A number of species based on conservation status are shown in the below table;

a) Monitoring of changes Flora

As part of ongoing monitoring efforts at the Bahau-Kayo Forest Management Unit (FMU), it has been confirmed that endangered, rare, and threatened (ERT) species, as well as endemic flora, continue to thrive in the area. To protect these species, all protected flora, including fruit trees and mother trees, have been tagged with blue tags to distinguish them from harvestable trees. Key findings from the monitoring include:

ERT Species Presence: A total of 18 ERT species were identified within BK FMU. Of these, one species is classified as Totally Protected under the Wildlife and Protected Areas Ordinance (WLPO) of 1998. Additionally, six species are protected under the same ordinance, while five species are not protected.
IUCN Red List Classification: Under th
International Union for Conservation of Nature (IUCN) Red List, four species are categorized as Vulnerable (VU), one species as Endangered, one species as Nearly Threatened, and four species as Least Concern (LC). Five species are not listed on the IUCN Red List.
CITES Status: One species found at BK FMU is listed under Appendix II of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), which regulates international trade to ensure it does not threaten species' survival. The remaining species are not listed under CITES.
Endemic Flora: The BK FMU (T/3433) is also home to sixty-six (66) endemic flora species, which are unique to the area. These species are managed with special consideration, particularly regarding sustainable harvesting practices to ensure their continued survival.

HCVAs Establishment Report

[MC&I 9.3.2]

b) Protection of Rare , Threatened and Endangered Species.

The BK Forest Management Unit (FMU) is committed to the ongoing monitoring and conservation of flora and fauna, particularly Endangered, Rare, and Threatened (ERT) species. The following measures have been implemented to ensure the protection and preservation of these species:

Ranger Patrols: FMU has internally appointed rangers to conduct regular patrols throughout the FMU area. These patrols are aimed at monitoring changes in flora and fauna and ensuring compliance with conservation policies. The rangers are in the status of refresh training and reappointment. However, the daily patrolling is taking place within the FMU.
Compliance with DF Circular 6/99: Strict adherence to the DF Circular 6/99 is enforced, particularly regarding hunting activities within the licensed area. Both workers and nearby communities are informed of the policy to prevent illegal hunting.
Awareness Materials: New wildlife posters (colour copies) and written instructions from the Managing Director on the 'No Hunting' policy are prominently displayed on-site to raise awareness among workers and visitors.
Regular Patrols and Security Measures: Regular patrols are conducted to deter and apprehend offenders. Additionally, signage and fencing are installed at strategic locations, especially at entry points, to control unauthorized and illegal entries into the FMU area.
Road Safety Measures: To prevent road-kill incidents and reduce accidents on logging roads, speed limits are being enforced for logging trucks and company vehicles, particularly within the FMU's internal roads.
Community Education, Participation, and Awareness (CEPA) Program: The FMU management highly recommends the implementation of CEPA programs. These programs engage relevant agencies and organizations to promote wildlife conservation awareness among local communities and workers.
Appointment of Honorary Wildlife Rangers: Honorary Wildlife Rangers are appointed to monitor wildlife conservation efforts and ensure adherence to conservation practices within the FMU.
CEPA Program in Year 2024:
FMU has conducted the Community Education, Participation, and Awareness (CEPA) program to raise awareness about wildlife conservation and responsible forest management. The program sessions were held at Bahau-Kayo FMU.

c) Socio Economic Conditions

There no community in connection to BK FMUs.

d) Safety & Health

As forestry work even within a single FMU especially the physical features of mountain forest is widely scattered with frequent changing work sites. The FMU’s supervision and control of forest workers at the FMU sites are highly enforced by FMU management team to ensure occupation safety demand great effort by all levels of management and self-reliance of the workers.
The FMU has committed to ensure safety at working place through the safety policy written and signed by the General Manager on 14/03/2017. The FMU collaborates closely with SFC and Sarawak Timber Association (STA) in their design and implementation of training programs for job specific skills, health and safety and venue of vocational training in the field of forestry and forestry industry.

e) Social Impact Assessment

There is only no community in connection to FMU and the findings of Social Impact Assessment is

f) Forest Fire Management Plan

Forest Fire Management Plan has been updated and revised by 2/11/2024.
Forest fires are a significant threat to the environment, and Shin Yang Sdn Bhd has taken proactive steps to protect its Forest Management Unit (FMU) from fires.
The company has developed a fire prevention and control plan, as required by MC&I (SFM) [indicator 6.5.5].
Despite favourable conditions in BK FMU, such as high rainfall, rivers as natural fire barriers, and high humidity, Shin Yang Sdn Bhd remains vigilant against the threat of forest fires.
The FMUs have a comprehensive fire management plan, including prevention, detection, and response strategies, with low fire risk due to the area's climate.

Key Aspects of the Forest Fire Management Strategy:

Adaptation to Local Conditions: The strategy focuses on training rather than building extensive fire prevention infrastructure, given the low risk of forest fires in the region.
Resource Allocation: Emphasizing staff training and capacity-building over physical measures, such as firebreaks, is seen as more efficient in the low-risk environment.
Compliance: The FMUs ensure compliance with forestry laws through thorough documentation and risk assessments.

Preventive and Mitigation Measures:

Preventive: No open burning, awareness training, equipment maintenance, and ongoing reviews of fire management plans.
Mitigation: Forest patrolling, formation of a Forest Fire Management Team, provision of firefighting equipment, and emergency preparedness.

Forest Fire Management Team has been formed by several group of workers to specifically deal with Forest Fire if it happens. The structure of the team is designed with Incident Commander (Fire Manager), Emergency Reporting, 3 team of fire suppression team and logistic team as shown below:

f) Stakeholder Consultation

Shin Yang established a liaison committee and FMURC to strengthen the FMU's relationship with stakeholders. The FMU has identified relevant stakeholders, and the liaison committee's role is to:

Produce solutions that all parties can agree on.
Work quickly to find these solutions.

Improve relationships between FMU and stakeholders, particularly in cases of conflict. FMURC has been setup commence by 2024 in the FMP as follow;

Liaison committee responsibility is to:

Issues over tenure claims and use rights.
Conflicts pertaining to the recognition of the legal and customary rights of the local communities.
Measures threaten or diminish resources or tenure rights of the local communities.
Protected the sites with special cultural, ecological, economic or religious significance to the local people.
Long term social and economic well-being of forest workers and local communities.
Grievances and provide fair compensation in case of loss or damage affecting the legal customary rights or livelihoods of local people.
The use of the forests’ multiple products and services to ensure economic viability with the environmental and social benefits.
Monitoring of mitigation/ enhancement measures after conducting the social impact assessment.

Basic Methodology for conflict resolution can be adopted by FMURC-CRC is:

• Complain form can be obtained at BK Office , Tel No : 084-449917 (Mr. Tiong)

h) Budget Allocation

In order to achieve the forest management certification, the management of BK FMU has planned and allocated total operations cost amounting RM 8 mils (estimation) for the Forest Management Certification per yea . [MC & I 8.2 d]

Monitoring for costing of forest management for year 2024 is;
Management review is conducted 03/11/2024 year end budget for Bahau-Kayo year 2025 is set.

i) Achivement

NIL

j) SFM Policy

As of 21 February 2021, no changes have been recorded.

END OF SUMMARY FOR BK FMU T-3433