1.       INTRODUCTION

1.1       Plan Rationale
This Forest Management Plan (FMP) has been prepared to serve as a general guide for the sound and sustainable forest management (SFM) of Dungun Timber Complex (DTC) Concession Forest which is now under the management of KPKKT; during its second 30-year cycle beginning from 2008. In line with the changing attitudes and trends in the approaches towards forest resource management, biodiversity conservation, climate amelioration and environmental protection; the prescriptions contained in this Plan were drawn in such a way as to accommodate as much as possible the current as well as anticipated future changes in the areas mentioned above.  These prescriptions and instructions are directed mainly at the management team of KPKKT as the concession holders and other relevant stakeholders such as the State Forest Department (SFD) of Terengganu Darul Iman, relevant government ministries, departments and agencies, non-governmental organisations, certification bodies (such as the Malaysian Timber Certification Council (MTCC) and Forest Stewardship Council (FSC)) and relevant individuals, etc. 
This Public Summary of the FMP is to be posted on Golden Pharos Berhad’s or KPKKT’s web-site as required by the FSC.  Golden Pharos Berhad (GPB) is the anchor company whereas KPKKT is the forest concession holder and provides the management team and expertise for the SFM of Dungun Timber Complex (DTC) concession forest.

1.2       Relevance with other Plans and Documents
This document focuses on the sound handling, utilisation and development of the natural forest resources within DTC concession forest within the districts of Dungun and West Terengganu in the State of Terengganu, Malaysia which, for the purpose of this FMP is regarded as a single Forest Management Unit (FMU).  Management prescriptions for the resource at stake, specifically the second growth timber stands, are laid out as a road map towards achieving good and responsible forest management in accordance with the SFM principle.
At the outset, it is important to note that this FMP can best be viewed as an extension of the earlier FMP which expires in 2007/8 and on which much of the description about the Project site as described here has been based.  Some information was also drawn from the more recent FMP for the said FMU prepared by the “Malaysia-German Project on the Sustainable Management and Conservation of the Tropical Rain Forest” (hereinafter referred to as “GTZ Project”) in 1999. The Consultants also drew their expertise from practical experience in forest management and conservation with various public and private agencies as well as experiences in preparing FMPs and Environmental Impact Statements (EISs) on behalf of a number of State Forestry Departments as well as private clienteles involving both natural and plantation forests.

1.3       Aims and Objectives
The overall aim of this FMP is to present as much information and instructions as possible which are relevant to a sound, responsible natural forestry management planning and effective long term implementation strategy based on sustainable development for the FMU under consideration and the surrounding region. 
The long term goal is to assist in the development, management and conservation of the natural forests efficiently and effectively and to ensure sustainability and growth in the management of the forest resource in the concession area. It is anticipated that come the year 2007, all of the virgin forest stands within the Forest Concession will have been logged at least once, thus paving the way for the Management to begin re-entering and re-harvesting the forest compartments that had been logged in the early 1980s (or earlier) when the company started its operation.  This FMP is therefore significant in that this is the first time a forestry company in Malaysia conducts its operations in a second-growth forest, after having successfully completed its first cycle under the Selective Management System (SMS).
The other, equally important objective of the exercise, is to demonstrate to potential clienteles, investors, suppliers, workers, the authorities, academia, certification bodies and other interested parties; the unwavering commitment of KPKKT as well as the Terengganu SFD in meeting our Malaysian Criteria, Indicators and Standards of Performance for SFM (MC & I) of MTCC or Principles and Criteria for SFM (P & C) of the FSC so that products made from timber raw materials from DTC timber concession areas under the management of KPKKT meet consumers’ requirement, expectation and standard and of very high quality.  It is also hoped that by so doing KPKKT’s forestry practices will be acceptable to the various stakeholders, and recognised at both local, national and international fronts.  Subsequently, it is hoped that such endorsement will foster better professional ethics and business goodwill thereby leading to appropriate recognition by the relevant international and local certifying bodies.

1.4       EIA-Compatibility of the Plan
The Malaysian National Policy on the Environment aims at continued economic, social, and cultural progress of the country and enhancement of the quality of life of its people, through environmentally sound and sustainable development. In the present FMP, appropriate environmental management standards have been duly incorporated, although not quite as detailed as in an EIA report proper.  Prescriptions of specific mitigating measures for all major forest management activities and field operations were included in order to reduce or eliminate the potentially negative impacts identified.  This approach is considered to be much more efficient and practical, because it encompasses not only a specific logging compartment, but the whole 108,900-ha FMU over the entire planning period of 30 years.

1.5       Legal and Administrative Framework
The State Forestry Department of Terengganu (SFD) guides, supervises and monitors the sustainable forest management (SFM) activities of the concession holders Kumpulan Pengurusan Kayu Kayan Terengganu Sdn Bhd  (Terengganu Timber Management Group; KPKKT) to ensure compliance with (1) the National Forestry Policy 1997; (2) National Forestry Act 1984 (NFP & NFA), (3) the “Forest Concession Agreement of Dungun Timber Complex (DTC)” (SFD TERENGGANU 1982), and (4) other relevant legislation as well as standards prescribed by local and international certification bodies.  The State Government of Terengganu first allocated the concession license to KPKKT for long term management and development of the FMU, covering a period of 25 years, from 1983 to 2007.  This license has now been renewed and extended to cover a further period of 30 years from 2008 to 2037. 
The identification and split in responsibility in managing the concession forest between the concessionaire and the SFD makes it all the more necessary for both parties to coordinate and work together, and, with the assistance from other relevant agencies, to achieve common objectives, which is a consistent SFM for the tropical rain forest (TRF) and sustainable development for the State in particular. The need for a close collaboration between the parties concerned is therefore obvious and is aptly exemplified by the Project itself.  Land use decisions in the region that are taken at the State level have a direct impact on the management of the FMU, and are beyond the control of KPKKT, or even the SFD.  The State can replace forest areas excised/ revoked with an equal area of land, wherever possible, but there is no guarantee that the quality of the new forest substitute would be equivalent to the one that had been foregone.
There are no customary land rights by the Aborigine or any particular group of people in the Concession Forest area.

1.6       Planning Period
The planning period for this FMP is 30 years, from 2008 to 2037.  But being flexible in nature, the FMP will be continuously updated and reviewed.  This will be done on a regular basis at intervals which will be decided upon by the management of KPKKT based on feedbacks from continuous monitoring and assessment exercises.  In this context, intervals of between 3 to 5 years are considered appropriate and therefore recommended.

1.7 The Kumpulan Pengurusan Kayu Kayan Terengganu Sdn Bhd (KPKKT)

1.7.1    Background
The Kumpulan Pengurusan Kayu Kayan Terengganu Sdn Bhd (KPKKT) was incorporated on 13th May 1980 and is a wholly-owned subsidiary of Golden Pharos Berhad (GPB).  GPB is a holding company listed on the main board of Malaysian Stock Exchange since 1994. Its major stakeholder is the State Economic Development Corporation (SEDC) of the State of Terengganu.
KPKKT employs a total of nearly 100 staff.  Of these, about 8% work at the management level (General Manager, Forest Manager, Assistant Managers and Forest Officers), 67% at the technical level (Forest Rangers, Foresters and Machine Operators).  The high proportion of technical staff reflects the importance KPKKT is assigning to field and R & D operations. For road construction and felling, KPKKT engages about half a dozen contractors.  Fig. 1 shows the organisational structure of KPKKT.

Fig. 1.     Organisational Chart of KPKKT.

<please click here for KPKKT’s Organizational Chart>