PITAS: Acacia Forest Industries Sdn Bhd (AFI) has applied for an additional 5,000 hectares of land to expand its Eucalyptus Pellita plantation operations in Pitas, said Assistant Minister to the Chief Minister Datuk Isnin Aliasneh.
AFI, which was established in 2004, is a joint venture company involving Sabah Forestry Development Authority (Safoda) in 2023, in which Samling Group acquired a stake in AFISB through acquisition of Hijauan Bengkoka Plantations Sdn. Bhd.
Following the acquisition, AFI’s ownership structure comprises 30 per cent equity held by Safoda, while the remaining 70 per cent is held by Samling Group through Hijauan Bengkoka Plantations Sdn. Bhd.
Isnin said such request would be considered in view of the plantation’s contribution to the state revenue and the potential for further expansion of the forestry industry.
“Safoda plantation in Kg Bongkul, Pitas, about an hour drive from here, covered 25,000 hectares at Bengkoka Peninsula, here, with about 8,000 hectares currently developed with Eucalyptus Pellita and some Acacia Mangium, while 17,334 hectares of the managed area have obtained sustainable forest management under a scheme recognised by the Programme for the Endorsement of Forest Certification (PEFC),“Today, we can see that the trees (mostly Eucalyptus Pellita) at this log yard that have been harvested after being planted for 10 years. Since last year, AFI have started producing timber, with 184,000 metric tonnes worth RM49.9 million as the revenue recorded up to June this year, while approximately RM1.8 million in royalties had been paid to the State government,” Isnin said.
He said this to Daily Express after visiting the Safoda and AFI forestry plantations in Kg Bongkul, Pitas, and attended a briefing on the operation led by AFI General Manager John M.Baxter.
“This is one of the ways for the State Government to increase revenue towards building Sabah Maju Jaya (SMJ) 2.0,” he said while congratulated Safoda’s management, chairman, directors and general managers for their efforts in ensuring good returns from the plantation.
He said the AFI’s request for additional land to expand Eucalyptus Pellita cultivation is commendable as it aims of ensuring a continuous supply of timber in the coming years.
“We hope this AFI plantation can be expanded further within its vast area and. AFI has expressed its intention to apply for 5000 hectares as additional hectares of land, and we will consider their request so that more Eucalyptus Pellita trees can be planted and our returns will continue for years to come,” he said.
“If the revenue increases after we grant the additional land to cultivate the Eucalyptus Pellita tress, it is not impossible that we will expand the area to the extent that they can manage. We leave that to Safoda’s management,” he said.
Asked what he would bring to the Chief Minister in support of the request, Isnin said the plantation had demonstrated positive results and that additional land would be needed to increase production.
“Firstly, we will inform the Chief Minister that we have achieved good returns. Secondly, to increase these returns, we need a larger area, and the land should be expanded where necessary so they can operate efficiently and generate substantial returns, particularly for the government,” he said.
On the relevance of forestry industry revenue to Sabah’s current needs, Isnin said a strong financial position was essential for the State government to manage its affairs and undertake more development initiatives.
“A government needs strong finances. When we have a strong financial position, we can manage our government better and do much more,” he said.
He added that the State government’s SMJ 2.0 development plan would focus on moving Sabah forward, including developing more downstream industries to increase revenue.
“However, this will be considered, and if returns increase, it is not impossible that we will expand the area to the extent that they can manage. We leave that to Safoda’s management,” he said.
On another issue of encroachment into the AFI land area by some individuals which was highlighted during the briefing on AFI land, Isnin said the State government will look for ways to address the matter, accordingly.
Meanwhile, Safoda General Manager Datuk Bahrul Razha Chuprat said the AFI land in Peninsula Bengkoka which it manages now was originally established as a forest plantation by former Chief Minister Tan Sri Harris Salleh during the Berjaya administration (1976 – 1985).
In fact, he said the Bengkoka plantation scheme was one of Safoda’s flagship pioneering projects under the then Berjaya government.
Bahrul said Safoda was set up by Harris in 1976, as a state statutory body, to tackle the rapid depletion of Sabah’s natural tropical forests and to reclaim lands degraded by shifting cultivation.
Under Harris Salleh’s directive, he said Safoda launched large-scale commercial tree planting on the Bengkoka Peninsula in northern Sabah.
“Harris championed the introduction of fast-growing exotic timber species, specifically planting extensive tracts of Acacia mangium, Gmelina, and Albizia,” he said.
Also present were Sabah Forestry Department Chief Conservator of Forest Datuk Zulkifli Suara, Safoda Chairman Datuk Hamild@Hamid bin Awang, its General Manager Datuk Bahrul Razha Chuprat, his deputy general manager Suzy Datu Maiks, Sabah Natural Resources office (Jabatan Hasil Bumi) Deputy Secretary Chung Ching Yian and several members of Safoda’s Board of directors.
