Kota Kinabalu: The State Government has removed land from the former Sabah Forest Industries Sdn Bhd (SFI) concession for gazettement as village reserves to benefit local communities.
Responding to a question by Sindumin assemblyman Yusri Pungut at the State Assembly, Assistant Minister to the Chief Minister Datuk Joniston Bangkuai said 39,482 acres (15,978 hectares) within the Sipitang Forest Reserve (Class II) were excised in 2025 for the purpose.
He said a further 108.72 acres (44 hectares) had earlier been removed in 2023, bringing the total area excised to about 39,590 acres (16,022 hectares).
Joniston said the decision followed assessments by the Sabah Forestry Department and engagement sessions with community leaders and villagers to ensure the areas identified would benefit local residents.
Responding to a supplementary question by Senallang assemblyman Datuk Seri Mohd Shafie Apdal, he said the current position of SFI involved several legal and administrative aspects being handled by the relevant authorities.
“Any action must take into account legal implications and the interests of all parties, while the State Government through its agencies continues to monitor the situation on the ground, including safety issues and the preservation of assets,” he said.
He added that appropriate measures were being considered to ensure that available resources were not adversely affected.
On the potential revenue from acacia and eucalyptus plantations in the area, Joniston said the State Government recognised the commercial value of these resources.
“However, any effort to monetise these resources must be carried out in a planned and transparent manner in line with the existing legal framework, taking into account sustainability, current market conditions and implementation models that provide optimal returns to the State,” he said.
He said the State Government remained committed to ensuring that any decision related to SFI would be made carefully based on legal and technical advice, while considering Sabah’s long-term interests.
In response to a supplementary question by Yusri, he said the State Government would consider the needs of SFI workers in relation to the gazetted land.
“As a caring government, we will look into all aspects and remain committed to ensuring they receive assistance, and we welcome your input on the matter,” he said.