LPF/0018 – Penyuan FPMU
(VERSION 06-revised on 01st August 2019)



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Figure 1.0: Location of LPF/0018-Penyuan FPMU

The project area is titled Penyuan Forest Plantation Management Unit (FPMU) which is part of License for Planted Forest LPF/0018: Penyuan Estate that commencing from 19th November 1999 to 18th November 2059. This FPMU is located northwest of Belaga Town in Belaga District, Kapit.

From the total 148,126ha of LPF area, the Penyuan FPMU area only covering an area of 15,261 ha. The coupe includes in FPMU are AT1, AT2, AT3, AP4-I/AT4(I) and AP4-I/AT4(II). About 42.86% from the total FPMU area is plantable areas, and the balance of 57.14% is reserved in situ for buffer, green belt area and natural forest. Table 1.1 show the area details of Penyuan FPMU area.

Table 1.1: Details of Penyuan FPMU area

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The Penyuan FPMU area is covered mainly by logged over hill mixed Dipterocarp forests. The logging licenses covering the whole site of Sector A is T/3282 and this logging activities is still going. A network of logging roads was built to cover the whole area within the project site which is presently used by the relevant timber licensees.

The FPMU is about 50 km north of Belaga town and about 30km west of the Asap Resettlement. The approximate grid reference of the site is between latitudes 02o56.0’N - 03o02.43’ N and longitudes 114o10.0’E - 114o25.61’E.

Penyuan FPMU is mainly drained by Batang Belaga and its tributaries. Being an undulating and hilly area, numerous small streams are also found within the site.

The northern side of the project area is bordered by Oil Palm Plantation of Samling Plantation Sdn Bhd and PASB Plantation Sdn Bhd. The west side is bordered by Pusaka-KTS Forest Plantation.



2018 5 0018 letter compliance



The management objective of the plantation is to enable a continuous supply of timber for downstream processing activities (plywood, veneer and particle board) especially for Shin Yang Group of wood processing plants. There is also the global sentiment to source for timber from planted forest instead of from natural forests. Planted forests have the advantage of planned and timed production, uniformity of logs and automation in the processing plants. They will also help to reduce harvesting pressure on the remaining natural forests.

Besides that, forest management also has the following objective:

  • Optimum utilization of forest resources while ensuring ecological function
  • Regulation of harvest on a sustainable yield basis
  • To reduce environmental impact
  • To promote natural forest conservation, restoration and enhancement within FPMU
  • To maintain or enhance the long-term social and economic well-being of workers and local communities



The forest plantation management is committed to Sustainable Forest Management (SFM) which is the process of managing forest plantation site to achieve one or more clearly specified objectives of management with regard to the production of a continuous flow of desired forest products and services without undue reduction in its inherent values and future productivity and without undue undesirable effects on the physical and social environment



5.1. Geology Soil
For soil distribution, the main soil types in Penyuan FPMU are Kapit soils and Kapit/Tutoh/Bekenu soils. With that, the site is dominated by skeletal soils. Skeletal soils commonly find in hilly areas.

5.2. Growing Timber Stock
The forest in FPMU area is a hill mixed dipterocarp forest that has been disturbed by logging and agricultural activities. There is only limited large diameter tree were recorded in the area as it was heavily logged over before, leaving only several tree which either too small for harvest or has no economic value.

5.3. Non-timber Growing Stock
Non-timber products are mainly used by local community. Most of non timber forest products taken by local people are wild vegetable and fruits, their also hunting wild animal & fishery for their meat consumption, and agricultural products such as bamboo and rattan.



Penyuan FPMU site is undulating to hilly condition with slope of 8° to more than 30°and altitude between 750 m to 3750 m above sea level. Deep valleys are a common structure within the areas especially around the northeast areas. The central terrain is undulating. This terrain factor causes difficulty to access some area during the wet season (October until January) and the steep terrain has high potential to soil erosion during heavy rain.



Penyuan FPMU area was formerly under the Forest Timber Licence T/3282. This forest plantation area was previously covered mainly by logged over hill mixed Dipterocarp forest. The northern side of the project area is bordered by Oil Palm Plantation of Samling Plantation Sdn Bhd and PASB Plantation Sdn Bhd. The west side is bordered by Pusaka-KTS Forest Plantation. No permanent local settlements are found within the site. There is no legal claims of NCR land within FPMU areas.

Development of the plantation involves several stages such as project site investigation, nursery establishment, plantation buildings and amenities, land preparation, construction of infrastructure, field establishment, maintenance and abandonment and replanting.



A total of 10 longhouses are located nearby FPMU. The profile of the longhouses were shown in Figure 2.0. The main communities living here are the Penan and Kenyah. Table 2.0 show the summary of the 6 longhouses that are affected by the development of the Penyuan plantation activities.


Table 2.0: Profile of the Asap resettlements

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The people of the community practices distinctive social-cultural systems which stems on their native culture which was passed down from previous generations. Although they mainly speak their own language on daily basis, some of them are also conversant in other languages such as Bahasa Melayu and Bahasa Iban.

Based on SIA assessment, the main occupation of the people was farming. The main crops planted were hilly paddy which grown by shifting cultivation and some fruit trees. The local community also receives some form of farm assistance from the Department of Agriculture. Livestock such as pigs and chicken are commonly raised in small scale. About 86% were farmers while the rest working with nearby companies.

A primary school and secondary school located at Sg. Asap while another primary school located ar Long Urun. Some public facilities or services such as clinic, post office, police station, district can found at Sg. Asap. There was no direct electricity supply to the longhouses. The people used their own generator. The longhouses have been provided piped water by government.

2019 7 0018 fig2 0Figure 2.0: Location of the longhouses within Penyuan FPMU



9.1. Choice Of Species
The FPMU is established with a mix of trees species both exotic and indigenous species with the predominant species are Acacia mangium and Paraserianthes falcataria. Minor species include Acacia auriculiformis, Neolamarckia cadamba and Eucalyptus spp. The latter will be established on a small scale of trial basis and will be closely monitored by the Company. If proven successful to meet the Company’s needs in short rotation its establishment will be undertaken on a larger scale.

9.2. Nursery Practices
Areas of a few hectares with good terrain and water sources were already identified on the ground/camp site for establishment of nurseries by taking consider the distance from nursery to the planting point. Nursery practice has been standardized after repeated research, and to be followed to the various species. The annual production targets is set based on the planting target plus allowance for nursery mortality, culling rejects, and mortality during transit and after planting in the field.

9.3. Site Preparation
The objective of land preparation is to improve potential tree growth, survival, and uniformly of a crop about to be planted. Through appropriate land preparation, factors that limit tree growth such as poor drainage weed competition, frost, and heavy slash and compacted or naturally dense soils are reduced. In area where there is standing remnant forest, the Company is interested to practice enrichment planting. This involves land clearing only and the environmental impact will be much reduced.



10.1. Thinning
Some areas will also undergo liberation thinning to provide more growing space for better trees to grow at their maximum rate, yielding the next harvest in as short a time as possible.

Thinning involves in two stages:

  1. Upon canopy closing - Basically, this stage applies when the trees reach age of two to three years for fast growing species.
  2. Based on the PSPs data - This thinning practice will be applied to boost the tree growth if the trees in plantation site still in small diameter as it already reach age five to seven years.

10.2. Pest And Disease Control
In the event that pests or disease are found to affect the Plantation, and the management has decided that control measures are to be implemented, the control measures will include:

  1. Changing the species planted in the affected areas or use more resistant clones;
  2. Eliminating the organism or known sources from the plantation area;
  3. Avoiding conditions that are conducive to the survival of the pest/ disease organisms;
  4. Adjust and refine silvicultural practice;
  5. Direct control using insecticide, fungicides or other biocides; and
  6. Biological control using natural enemies of the pests.

10.3. Weed Control
For the first cycle maintenance, weed and low shrubs which are part or the indigenous ground covers need to be slashed back at regular intervals during the initial 3 month of after planting because some species do not tolerate well competition from weeds (Grass height must not more than half height of the planted trees). For the second cycle of weed control is depend on the site condition.


11.1. Harvesting Operation Prescription

11.1.1. Cutting Rules
The FPMU may fell any planted species of trees which are not prohibited by the Forest Rules and Wildlife Protection Ordinance. Permanent waterways with continuous flow of water throughout the year will be protected by a buffer zone (width of buffer zone is depend on the width of the stream) on both bank of the river and no activities will be permitted in this areas. Reduce impact logging procedure – The management of forest plantation takes cognizance of the “Reduce Impact Logging, Guidelines/Procedures for Ground Based Harvesting System Using Tractor” applicable to its harvest operation.

11.1.2. Cutting Limit
The downstream processing mill for plywood and veneer is equipped with the latest technology which is enables to peel up to very small logs. Therefore, the company is proposing cutting limit above 10cm at diameter breast high (DBH).

11.1.3. Harvesting System
Harvesting system engaged are RIL and Cable Yarding system to reduce impact especially to the soil and water value, and minimize damage to the residual stand. As fast growing pioneer species need a full light condition for its good growth, that is different from natural tropical tree species, clear felling system will be applied. Protected areas such as Terrain Class IV and Riparian Buffer Zone are strictly prohibited and protected from any disturbance activities.

11.2. Period Of Harvesting
Based on the present research data available from PSPs and proposed diameter cutting limit (minimum 10cm DBH), the growth rates and rotation length for harvesting will be commenced at 10 years after planting in normal case.

11.3. Annual Allowable Cut (AAC)
The allowable cut is based on area control, in accordance with the approved General Harvesting Plan (GP) of the licensed area. The company is proposing 10 years cutting cycle for the whole Penyuan Estate area (include certified and non-certified area), which is 5 years within certified area (FPMU area) and the next 5 years will be move to other coupes outside certified area (still within Penyuan Estate). Annual Cutting Area (ACA) within certified area for a period of 5 years is 1,348.80ha. The additional factors that taking into consideration for AAC calculation includes the no-cut buffer zones, terrain IV, HCV area, environmental and wildlife consideration.



Proper permanent sample plots have been set up to monitor performance of trees, growth rate of the planted forest and yield of all forest products harvested so that useful data could be procured for estimates of stocking size, quality and stand volume of the plantation. The location of each plot is randomly chosen within the FPMU area and will be measured annually. Pest and disease information is also collected at the time of assessment.



13.1. Environmental Impact Assessment (EIA) Report
The Environmental Impact Assessment report for the LPF0018 forest Plantation "Environmental Impact Assessment " was approved by NREB Sarawak dated 28th January 2000.

13.2. Environmental Monitoring Report (EMR)
The environmental monitoring and review is done by consultant and submitted to the NREB quarterly. The monitoring includes water course quality monitoring.

13.3. NREB Verification and Inspection Visit of The FPMU
The NREB regularly carries out routine environmental inspection on the compliance to the Terms and Conditions of the EIA Report Approval document for the project area.

13.4. Patrolling by FPMU Holder
FPMU holder has been develop patrolling schedule to ensure the protected and HCV areas is remains intact, control encroachment, fire monitoring and to prevent/control unauthorized activities in forest plantation areas.



The guidelines used for identification and protection of ERT species of forest flora and fauna including features of special of special biological interest area:

  1. Wildlife Protection Ordinance 1998
  2. Sarawak Plant Red List
  3. A Master Plan for Wildlife in Sarawak 1996
  4. HCVF Toolkit for Malaysia
  5. Orang Utan Strategic and Action Plan
  6. The IUCN Red List of Threatened Species at

Sign boards has been prepared and installed at strategic locations. The entry to FPMU area shall be limited to the unauthorized person. A schedule for monthly patrol for the year has been developed to control fire, hunting, fishing and collecting activities in the forest plantation areas.

Signage detailing the Director of Forest Circular 6/99 have been erected in front of the entrance detailing 4 items:

  1. Employees of the Timber Companies are not to hunt in the licensed areas while they are in the employ of the company.
  2. Company vehicles are not to be used for hunting or for carrying meat of wild animals.
  3. Selling of wild animals or meat of wild animals is not allowed in the licensed area.
  4. Feeder roads are to be closed after the final block inspection to prevent further entry of vehicles.



The assessment of High Conservation Value Forests (HCVFs) within Penyuan FPMU was carried out by consultant based on HCVFs Toolkit Malaysia. The assessment was conducted on April 2015. Sub-teams assessed biodiversity, ecosystem service value, social and cultural values and found that all six major values listed in the HCVF Malaysia Toolkit (2009) are present.

As a result of the assessment, HCV 1.1 was not present in the plantation area. There were sign of Endangered (EN), Critically Endangered (CR) or Vulnerable (VU) flora and fauna (HCV 1.2) observed during the assessment. There were 10 endemic species of flora and 3 endemic species of fauna found in FPMU (HCV 1.3). These endemic flora and fauna species are common and significant concentrations or distributions are already protected within the TPAs in Sarawak.

HCV 1.4 which served as critical temporal use for wildlife such as food source also observed within project area. Although the surrounding of project area have been developed for tree plantation and oil palm plantation, the areas which served as an important refuge for wildlife still available(HCV 2).

HCV 3 was not present in the plantation area. Terrain IV have been identified within the project area remains as an important watershed to the main rivers which helps to mitigate floods and provide clean water to Penyuan camp and nearby villages (HCV 4.1). To maintain and enhance this value, river buffer has been established and maintain according to DID/NREB guideline. HCV 4.2 has been identified in the project area and river buffer has been established to control and minimize erosion. Barrier of destructive fires also been identified in the project area (HCV 4.3).

A total 10 local community settlements are located adjacent to Penyuan Tree. The communities from the 10 settlements are depending on the forest resources available in the project area to meet their basic needs.

Figure 3.0 show HCV identified within Penyuan FPMU areas

Management of HCVs Areas:

  1. Retain Terrain IV and other forest area such as water catchments and river buffers/wildlife corridors.
  2. Establish and maintain wildlife corridors and rivers.
  3. Plant food resources for animals in and around the wildlife corridors and river buffers.
  4. Ensure that trees felled fall away from river bank buffers.
  5. Maintain security post at the entrance of plantation camp.
  6. Prohibit plantation workers from hunting.
  7. Establish buffers for each salt lick.
  8. Keep road and skid trail density to minimum to reduce environmental impacts.
  9. Regular consultation with local Penan and Kenyah people who are affected by the forest operation.
  10. Identify and mark the location of burial ground with the local people.


Monitoring of HCVs Areas:

  1. Wildlife corridors and river buffers established and maintained.
  2. Put up warning signs on hunting and posters on protected plants and animals.
  3. Decrease the number of outsiders to enter the areas.
  4. Initiation of environmental education programs.
  5. Continuous village consultation.
  6. Burial ground preserved.
  7. Identification and Protection of Rare,Threatened and Endangered Species. Rare, threatened and endangered species will be identified and protected by company.

2019 8 fig3 hcv areaFigure 3.0: HCV area within Penyuan FPMU Areas



16.1. Yield Of All Forest Products Harvested
No harvesting activities is carry out at this moment within certified areas.

16.2. Growth Rates Of The Planted Forest
Growth rate of fast growing planted species is approximately 1.3 - 2.1 cm per year in DBH and 1.5 - 2.2 m per year in height. The growth rate is monitored by Permanent Sample Plots (PSPs) established within FPMU.

16.3. Composition And Observed Changes In The Flora And Fauna

16.3.1. Flora
Based on the FPMU monthly patrolling record for year 2018, the previous stream buffer zone/wildlife corridor, Terrain IV, natural forest areas and others protected areas was maintain undisturbed. There is no further study on the changes of flora due to lack of expertise.

16.3.2. Fauna
The fauna species has been identified by our Surveyor during monthly patrolling. For year 2018, only 10 species has been identified during the patrolling. Some of the species cannot be identify due to lack of expertise.

Table 3.0: Fauna observation within Penyuan FPMU

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16.4. Environmental And Social Impacts Of Harvesting And Other Operation

16.4.1. Environmental impacts

Based on the 2nd Quater of Environmental Monitoring Report (EMR) for year 2019, the water qualities in Penyuan Estate were generally found to be moderately good with most of the parameters were well within Classes I-IIB of the NWQSM. The exception were for the moderately raised BOD levels at all points and the moderately high COD level at Points SP1, SP2, and SP3 (Class III-V of the NWQSM). However, it was noted that the pH levels were all above pH 6 and the levels of the DO (above 5mg/l). The level of nutrients (nitrogen and phosphorus) were also detected very low, below 0.1mg/l. The TSS levels at all points had reduced or remained low (Class I), at values of 7,6,4,4 and 5 mg/l respectively. It is commendable that the TCC levels at Points SP1, SP3, SP4 and SP5 were detected low and they were all well within the Class I limits. Meanwhile, the TFC levels at Point SP1, SP3, SP4 and SP5 were detected low, all within Class IIA of the NWQSM. Hence, on this basis, it could be concluded that the water qualities had remained relatively good despite of the plantation activities.

Based on these parameters, the water analyses had therefore shown that the river water qualities had remained good in spite of the on-going development (and harvesting) activities in the Plantation.

Other environment parameters result as below:

Table 4.0: Other environment parameter observation and comments

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16.4.2. Social impacts

As in May 2019, there were 43 field staff members and 123 general workers (16 locals and 107 foreign workers) employed. A few staff members are staying in the labour quarters. Meal incentive will be provided to the workers. No major communicable or vector-borne diseases or major occupational accidents had been detected or reported within this quarter. Pest and diseases are not a serious problem for the Plantation.

For domestic waste management, the company had been provided sanitary toilets with septic tank facilities, and the domestic wastes generated at the worker’s camps are collected and dumped in a pit within the Plantation.

Locals such as those from nearby areas be given preferences job. The FPMU has been taken initiatives to increase workers recruitment from local’s communities through direct verbal communication with villages and also posting the job advertisement at the Longhouses notice board.

As part of the social contribution the management of the FPMU had provided free transportation to the local communities on requests, foods and drinks for special occasions, repair of access roads to longhouses. The management had also assisted in the construction of a long house and water pipe for the Penan communities.

There are no complaints, land disputes or conflict encountered between local communities and FPMU since year 2014 until July 2019.

16.5. Cost and productivity of forest management
Cost and productivity of the company’s operation was confidential. Please refer to the management for details and information.


Liaison committee responsibility is as below:

  1. Issues over tenure claims and use rights.
  2. Conflicts pertaining to the recognition of the legal and customary rights of the local communities.
  3. Measures threaten or diminish resources or tenure rights of the local communities.
  4. Protected the sites with special cultural, ecological, economic or religious significance to the local people.
  5. Long term social and economic well-being of forest workers and local communities.
  6. Grievances and provide fair compensation in case of loss or damage affecting the legal customary rights or livelihoods of local people.
  7. The use of the forests’ multiple products and services to ensure economic viability with the environmental and social benefits.
  8. Carry out annual consultation to maintain the long-term social and economic well-being of local communities



Some studies will be parts of our research activities in this tree plantation project. Shin Yang Forestry Sdn Bhd with collaboration of Sarawak Forestry Corporation (SFC) and University Putra Malaysia (UPM) under MoU signed in 2012. Further research will be carried out for technical development of tropical tree plantation. The planned studies are as follows:

  • Silviculture scheme and yield
  • To determine the best harvesting time
  • Biological disease control without agrochemicals


Other items in MoU:

  • Permanent Sample Plot management
  • Biological control and protection
  • Study on carbon foot print
  • Research and Development on Nursery, Tree Plantation and Reforestation
  • Nursery practice and planted forest establishment
  • Plant propagation techniques
  • Biological control and protection



Annual budget includes the expenses of overall operations and activities namely; Nursery, Land preparation, Planting & Supply, Silviculture, Harvesting, Conservation & Monitoring, Transport & Infrastructure including social program, Amenities for workers, Safety, Staff training, research development etc.

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