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 Bengkoka.
Assistant Minister to the Chief Minister Datuk Isnin Aliasneh said the State Government will consider the application following the plantation's solid contribution to state revenue and the sector's growth potential under the Sabah Maju Jaya (SMJ) roadmap.
AFI, a joint venture between the Sabah Forestry Development Authority (Safoda) with a 30 per cent stake and the Samling Group holding 70 per cent, recorded RM49.9 million in revenue from 184,000 metric tonnes of timber produced up to June this year, alongside roughly RM1.8 million paid in state royalties.
Speaking after visiting the operations in Kampung Bongkul alongside Safoda and Sabah Forestry Department officials, Isnin noted that expanding the planted area would help secure continuous timber supplies and generate higher returns for Sabah.
Addressing separate concerns raised during an operational briefing regarding local land encroachment within AFI's concession area, Isnin affirmed that the State Government will seek appropriate measures to resolve the issue.