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Mega Science 2.0: Environment Sector

Published by Penerbitan, 2016-09-26 23:13:29

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MEGA SCIENCE 2.0 Environment Sectorare thus important as guidelines for planning and of a mangrove forest to a shrimp pond changes a carbonmanaging mangrove resources sustainably by taking sink into a carbon source, liberating the accumulatedinto consideration the socio-economic aspects, carbon back into the atmosphere - but 50 times fasterenvironmental stability, recreation and ecotourism and than it was sequestered.conservation of biodiversity. The critical role of the coastal ecosystems including As expected, over 90% of terrestrial biological species mangroves in maintaining the climate is also beingin Malaysia occur within natural forests. Nonetheless, increasingly acknowledged. For instance, the term ‘bluethe area of lowland dipterocarp forests is now much carbon’ sinks/storage is used to define this further. Outreduced due to conversion for agriculture. The of all the biological carbon (or green carbon) capturedremaining forests are logged for timber, but yet the globally, over half (55%) is captured by marine livinglargest reservoir of genetic biodiversity variation of the organisms, not on land. Hence, it is called blue carbon.terrestrial flora and fauna in Malaysia are still found within Continuously increasing carbon dioxide (CO2) and otherthe remaining forests. And, in the aquatic (including greenhouse gas emissions are contributing to climatemarine) ecosystems, coastal mangroves and coral change. The mangrove depletion is further exacerbatedreefs are known to be very rich in species biodiversity. by rapid economic development in the coastal areasReportedly, there exist an estimated 4,000 species of apart from unsustainable forest practices, landmarine fishes and 300 species of freshwater fishes in conversion/ reclamation for agriculture, aquaculture,Malaysia. Accordingly, Malaysia has been identified as mining, industrial, port expansion, urbanisation, tourism,one of the 25 ‘biodiversity hotspots’ in the world, with a infrastructure development.‘biodiversity hotspot’ being defined as a habitat that isrich in biodiversity, but which is also facing grave threats Mangroves and Mudflats: There generally has beento its continued existence. a decline in the mangrove cover for both the total mangrove area (36% decline, 1973-2005: Tan 2007) Furthermore, the loss of mangrove forests could prove and the mangrove forest reserves (22% decline, 1980-catastrophic in ways only now becoming apparent. What 2005: Tan 2007) in Malaysia. There are approximatelyrole might these forests play in climate change? For 41 true mangrove flora taxa in Malaysia (Tan 2005)&more than 25 years Jin Eong Ong, a retired professor (Tan 2007).of marine and coastal studies in Penang, Malaysia,and his colleagues have been exploring a less obvious Many mangrove reserves gazetted during the colonialmangrove contribution: the carbon budget of mangroves period have since been degazetted and made available- the balance sheet that compares all the carbon inputs for other uses. Added to that, even those mangroveand outputs of the mangrove ecosystem - and they forests that survived the onslaught are being choked byhave found that these forests are highly effective carbon coastal pollution contributed by domestic and industrialsinks. They absorb carbon dioxide, taking carbon out of wastes. Therefore, we need to find a balance betweencirculation and reducing the amount of greenhouse gas. meeting increasing present-day needs on the one hand, and conserving the environmental support system The measurements suggest that mangroves may provided by mangroves, on the other. Of course, therehave the highest net productivity of carbon of any natural are many options before the Government to achieve suchecosystem [about 45 kilograms per 0.4 hectares per day] a goal. Given their multiple-use potential, it is imperativeand that as much as a third of this may be exported in that the management of mangrove based terrestrial andthe form of organic compounds to mudflats. Mangroves, aquatic ecosystems be undertaken within the contextit seems, are carbon factories, and their demolition robs of integrated coastal area management planning. Thisthe marine environment of a vital element. Conversion would essentially require cooperation and commitment 129

MEGA SCIENCE 2.0 Environment Sectorbetween various agencies and stakeholders to ensure (iv) developing a Coastal Vulnerability Index to guidethe sustainability of mangrove resources, now and in the the design of programmes to enhance coastal zonefuture. management. The Maritime Institute of Malaysia (MIMA) International 6.12 ENVIRONMENTAL CONTRIBUTION OFConference on Mangroves a few years back called FORESTSfor a \"no-net loss\" policy, with the goal to balancethe loss caused by economic development through 6.12.1 BIOLOGICAL BENEFITS OF FORESTSreclamation, mitigation and restoration efforts - so thatthe total acreage of mangrove areas in the country At the heart of forest conservation in Malaysia are itsdoes not decrease, but remains constant or, preferably, protected areas that have been legally gazetted by law.increases. One good example that would relate to this In Malaysia, protected areas cover both terrestrial andapproach would be the Matang Mangrove Forest in marine environments. Almost half of the total land areaPerak. Through an integrated management approach in Malaysia is protected under Permanent Reserveand strong support from the Government, this forest is Forests (PRFs - as of 2011: 14.61 million hectares)one of the best managed areas under sustainable forest of which about 11.38 million hectares and 3.23 millionmanagement system in Malaysia and is also recognised hectares are set aside respectively for sustainableas the best managed mangrove forest in the world. timber production and as totally protected areas for theirProspects for Mangroves conservation and economic, social, and conservation values.rehabilitation in Malaysia: As early as during the8th Malaysia Plan (2001-2005) period, measures In addition, the protected area network has beenwere already taken to intensify the conservation and further extended by the designation of national and Staterehabilitation of mangrove forests, to serve as an parks, wildlife reserves, bird and game sanctuaries,effective shoreline defence system against erosion, such as Taman Negara, Cameron Highland Wildlifewave action and tsunamis. This approach of managing Sanctuary, Tioman Wildlife Reserve, Royal Belum Statethe natural resource is being continued in the 9th and Park, Tasek Bera (RAMSAR wetland) and Tanjung Piai10th Malaysia Plans: (2006-2010) and (2011-2015), (RAMSAR mangrove) in Peninsular Malaysia; Gunungrespectively, through: Mulu National Park, Lanjak-Entimau Transboundary(i) adopting an Integrated Coastal Zone Management Conservation Area and Lambir Hills National Park in Sarawak; and Kinabalu Park, Danum Valley and Maliau Policy to promote the conservation and preservation Conservation Areas in Sabah. of marine and coastal resources;(ii) intensifying the rehabilitation and improvement of Apart from the legal mechanisms deployed to gazette coastlines through regeneration and revegetation the protection of forests within the PRFs as defined programmes; by the National Forestry Policy 1978 (Revised 1992)(iii) developing a comprehensive management plan and the National Forestry Act 1984 (Amended 1993), for mangroves and coastal forests to arrest the Section 10(1) stipulates 11 functional classes for various mangrove depletion rate to ensure a continuous functions, this includes for biological and environmental supply of resources as well as to mitigate the impact benefits such as follows (Shamsudin et al.): of coastal erosion and tsunamis; and (1) Timber Production Forest under sustained yield (2) Soil Protection Forest 130

MEGA SCIENCE 2.0 Environment Sector(3) Soil Reclamation Forest • 600 species of mosses, (4) Flood Control Forest • 1,200 species of birds,(5) Water Catchment Forest • 449 species of freshwater fish,(6) Forest Sanctuary for Wildlife • 294 species of reptiles,(7) Virgin Jungle Reserve • 1,200 species of fern and fern allies,(8) Amenity Forest • 171 species of amphibians,(9) Education Forest • 1,200 species of butterflies, and (10) Research Forest • > 100,000 species of other invertebrates (insects,(11) Forest for Federal Purposes worms, etc.). At the species level, biological protection comes in theform of 32 timber species not allowed to be harvested The twelve countries (China, Brazil, Australia,within the PRFs in Peninsular Malaysia (MTC 2006), 48 India, Congo, Mexico, Indonesia, Peru, Colombia,protected plant species in Sarawak under Section 31 of Madagascar, Malaysia, and Ecuador) together containSarawak Wildlife Protection Ordinance (MTC 2006), and at least 60% of the world’s known species.20 genera/ species of trees listed as ‘prohibited species’under Sabah’s various enactments (MTC 2006). Land use changes were extensive in the 1960s to6.12.2 CONSERVATION MEASURES OF FLORA early 1980s, when much of the lowland natural forests and landscapes were converted to plantation agriculture AND FAUNA BIODIVERSITY and development. The 70%+ of the land area underThe strong environmental consciousness of recent natural forest cover shrank to about 63% by 1972 (FAOyears has also created certain buzzwords. 'Biodiversity' 1973), further declined to 61% in 1988 to 59% in 1992and \"product certifications\" are two of them; which are to 58% in 1995 and to 57% in 1996 (Anon 2009). Thecurrently debated upon. Malaysia is fully committed to declining trend seemed to stabilise from the year 2000the cause of protection and conservation of its biological and by the year 2010 the total land area under naturalresources. Malaysia - one of the twelve \"Mega Diversity\" forest cover remains around 19 million ha, close to thecountries is rich in biological diversity, as reflected in 1994 figure.the figures presented (approximate in number):15,000Angiosperms (flowering plants), 8,500 species in Thus, over the period 1970 to 2000, natural forest - thePeninsular Malaysia, as follows: storehouse of biodiversity, was reduced by about 20% in• 293 species of mammals; the whole of Malaysia, mainly in conversion to the cash• 12,000 species of moths; crops, oil palm and rubber. Consequently, scientists estimated that 170 of 8500 flowering plants (2%) are extinct (Sunday Times 15 October 2000). Nevertheless, we have reached a time in our development path where we could be more sensitive to the needs of nature and ensure that any further reduction in the extent of our forested land should only be after the most careful of considerations (Wan Razali 2008). 131

MEGA SCIENCE 2.0 Environment Sector Furthermore, almost all biodiversity conservation Enactments/ Ordinances and Parks Enactments/measures for Malaysian natural forests are in the Ordinances, and Sabah Biodiversity Enactment 2000form of habitat conservation, especially via the legally and Sarawak Biodiversity Regulations 2004.established Protected Areas. These areas compriseNational and State Parks, Wildlife Sanctuaries, protected The following general information (Figures 6.7A,areas within the Permanent Reserved Forests (PRFs) B and C), which is again self-explanatory, provides aand Marine Parks. Recent initiatives include the Trans- snapshot view of Malaysia’s biodiversity of the status:boundary Biodiversity Conservation Areas of Lanjak- Endemic, Endangered, Critically Endangered, andEntimau Wildlife Sanctuary in Sarawak and Betung Vulnerable (Sunday Times 15 October 2000, Saw, LG:Kerihun National Park in Kalimantan, including Pulong pers. comm. 2000; Chua et al. 2010).Tau National Park in Sarawak and Kayan MentarangNational Park in Kalimantan. No. Country NBI The Heart of Borneo Initiative, spanning across 1. Indonesia 1.000ca. 220,000 km2 in Malaysia, Indonesia and Brunei 2. Colombia 0.935seeks to re-establish forest connectivity and corridors 3. Mexico 0.928particularly for protected areas which are fragmented 4. China 0.893due to forest degradation and land use changes (Chua 5. Brazil 0.877et al. 2010). Many environment related legislations have 6. Ecuador 0.873been enacted to protect the country’s environment. 7. Australia 0.853The National Parks Act 1980 indirectly protects plant 8. Venezuela 0.850populations through habitat protection. Other legislations 9. Peru 0.843that have strong elements to protect flora biodiversity 10. Costa Rica 0.820include the National Forestry Policy 1978 (amended 11. Madagascar 0.8131992), the National Policy on Biological Diversity 1998, 12. Malaysia 0.809the National Agriculture Policy 3 (1998 – 2020), theNational Physical Plan (2005 – 2010) and International Figure 6.7A National Biodiversity Index (NBI) of 12Trade in Endangered Species Act 2008, to name a few. biologically diverse countries The National Physical Plan (NPP), as provided for No. Endemismvia the Town and Country Planning Act 1976, aims to 1. 26% 0f 2830 tree species in Pen. Malaysia.prioritise land and natural resources for sustainable 2. 20-40% of 3500 tree species in Sabah & Sarawakdevelopment. There are six policies that have direct 3. 43% of 212 palm species in Pen. Malaysiareference to natural resources and biodiversity assets. 4 40% of 290 palm species in Sabah & Sarawak.The Environmentally Sensitive Areas (ESA) shall beintegrated in the planning and management of land Figure 6.7B Tree/ Palm species endemismuse and natural resources. The Central Forest Spine(CFS) that is established to anchor the ESA includesthe mountain backbone of Peninsular Malaysia, wherebiodiversities are found. Distinctively, the States of Sarawak and Sabahhave their own separate biodiversity legislations withregulatory and administrative mechanisms to protectbiodiversity conservation. These include their Forest 132

MEGA SCIENCE 2.0 Environment SectorNo. Threatened Category Malaysia ratified the UNFCCC in July 1994, UNCBD June 1994, and KP September 2002. This signifies her1. 35 taxa ENDANGERED(EN) of which 10 endemic commitments in addressing the problems of climate to Pen. Malaysia change and biodiversity and sets the stage for further works on the issues. Malaysia’s best practices approach2. 42 taxa VULNERABLE(V) of which 6 endemic to to forest management has been able to conserve Pen. Malaysia biological resources and carbon stocks by avoiding the deforestation and forest degradation. Malaysia is a net3. 15 taxa CRITICALLY ENDANGERED(CR) of sink, as reported in the NC2 (NRE 2011- Table 2.4). which 6 endemic to Pen. Malaysia The total carbon stock of Malaysian forests amount to about 92 million tC. The total carbon released due to[Note: Peninsular Malaysia has 155 species (worldwide 500 conversion and forest harvesting activities is 26 millionspecies) comprising 165 taxa of which 34 taxa are endemic; tC. After accounting for emission from land conversion,90 taxa share their range with Sabah & Sarawak; 41 taxa the amount of carbon sequestration or carbon uptakeextend their distribution to Sumatra & Philippines]. by forest vegetation was 390 million tC. It is noted that Malaysian forests and other woody biomass contributed Figure 6.7C Dipterocarps in Peninsular Malaysia: to about 4% of the tropical forests sink. Number of taxa threatened Accordingly, the Prime Minister of Malaysia announced6.12.3 CARBON CONSERVATION AND at the Climate Change Conference in December 2009 SEQUESTRATION IN FORESTRY in Copenhagen, an indicator of a voluntary reduction which amounted to 40% of emission intensity of grossClimate change represents a significant issue confronting domestic product (GDP) by 2020 compared to the 2005the global community in recent years. This sentiment level. This reduction is also conditional on receiving thewas reinforced by the landmark 1997 Kyoto Protocol to transfer of technology and adequate financing from thethe United Nations Framework Convention on Climate Annex 1 Parties (industrialised countries), in line withChange (UNFCCC) - a legally binding document the spirit and aspiration of the UNFCCC. The emissionrequiring commitments by industrialised countries intensity is based on carbon - the indicator used toto reduce their collective emissions of greenhouse measure voluntary emission reduction, and is actuallygases (GHG) by 5.2% compared to the year 1990. the total emission per unit of GDP. The indicator wasThis is a pressing issue indeed because the roles of adopted as it allows emission to grow in tandem withtropical forests in climate change are profound. IPCC the economic growth, which is crucial for developingreport estimated that in the last decade, anthropogenic nations, like Malaysia. Essentially, 40% reduction ofemissions totalled 7.1 ± 1.1GtC/year and emissions carbon intensity is equivalent to about 10% reduction offrom deforestation in the 1990s are estimated at 5.8 GHG emission from business-as-usual.GtCO2/year (IPCC 2007). Forests in generalaccountfor about 80% of the annual CO2 exchange and can Therefore, in absolute term, Malaysia has to reducesequester between 1.1 to 1.8 GtC/annum in 50 years, about 40 million tonnes from the projected total of 376representing 20 -25% of carbon emitted each year by million tonnes of GHG emission by the year 2020. Tocombustion of fossil fuels (Makundi et al. 1998). Carbon achieve the 40% reduction of carbon intensity, threeforestry projects in tropical forests are also among the mitigation options have been identified consisting ofmost cost-effective means of achieving climate change (i) Renewable Energy (RE), (ii) Energy Efficient (EE),mitigation. and (iii) Solid Waste Management (SWM). The three areas are projected to contribute 45 million tonnes of 133

MEGA SCIENCE 2.0 Environment SectorGHG reduction by 2020, provided effective and efficient The idea is analogous to “Compensated Conservation”mitigation measures are implemented. The above when financial incentives are made available through ascenarios have not factored in the important role of proposed “Stabilisation Fund” (27th SBSTA, Bali 2007).forest as carbon sink. Assuming Malaysia can maintain This approach recognises countries with large tractsits current level of forest cover, an additional 250 million of forests and low or stabilised deforestation ratestonnes of CO2-equivalent could be sequestered yearly. that practices sustainable forestry as having reducedThe objectives for managing forest lands generally emissions from deforestation and thereby contributedinclude the following: to mitigating climate change. Malaysia is in favour of(i) sustainable forest management; this approach, but will have to address it from various(ii) industrialwood (and fuel wood) production; perspectives, especially from future arrangement of(ii) protection of non-timber natural resources (e.g. REDD+ in reducing emissions. biodiversity, water, and soil); The national REDD+ strategy is currently under(iv) recreation; and development. Though the main options for REDD+ areknown, it is expected that the national REDD+(v) rehabilitation of damaged ecosystems, etc. strategy will also provide guidance on the following: Carbon conservation and sequestration resulting • Goals, Objectives and Scope – which will alsofrom managing for these objectives will be an added determine the objectives of a finance mechanismbenefit. Forest management practices that meet the (e.g. Malaysia may develop a dedicated REDD+objectives given above can be grouped broadly into mechanism or umbrella/ conservation fund),three categories based on how they are viewed to curbthe rate of increase in atmospheric CO2 (Brown 1996), • A brief description of the REDD+ institution andnamely (i) Management for Carbon Conservation, (ii) its relationship to government agencies and aCarbon Sequestration (or Storage), and (iii) Carbon list of responsibilities – which will determine theSubstitution, as discussed below: governance principles of a finance mechanism, and (i) Management for Carbon Conservation - mainlyprevents carbon emission by maintaining existing (and • Adescription of how funds will be managed – theincreasing) carbon pools in forests as much as possible development efforts for a finance mechanism maythrough controlling deforestation, protecting forests in need to be integrated. Malaysia firmly believesreserves, controlling anthropogenic disturbances, and that any carbon saving as a result of early actionchanging harvesting regimes. Sustainable management projects could be used under a future market orpractices, such as extending harvesting cycles, reducing other related mechanism (carbon market).damage and negative impacts to remaining trees andsoil respectively (e.g. reduce or low impact logging), (ii) Carbon Storage - management increasesand reducing logging waste, ensure that a large fraction the amount of carbon in vegetation and soil of forestof carbon is conserved. ecosystems and this include the following practices: increasing forests area – natural and plantation, protecting forests from degradation, assisting regeneration – eitherassisted or natural, and extending the lifetime of wood products. Sequestering carbon by storage management is only a short term option - 134

MEGA SCIENCE 2.0 Environment Sectorthough the process may take place over a several • ensuring deforestation activities (involving a land-decades depending on the attainment of maximum use change) carry out with due regard to social andcarbon density of such forests, producing a finite carbon environmental sensitivity and reduces or minimisessequestration potential beyond which little additional emissions.carbon can be accumulated. (i) Malaysia can do a lot more as a carbon sink by (iii) Carbon Substitution - involves accelerating the promoting tree planting in urban areas and underutilisedtransfer of forest biomass carbon into products such as lands outside of the designated forest reserves, and asconstruction materials and fuel, rather than using fossil- renewable energy in the form of wood pellets for internalfuel-based energy and products and cement-based use and export to replace fossil fuels and as horticulturalproducts. This approach involves extending the use of carbon for carbon sequestration.forests for wood products and fuels obtained either from 6.13 MALAYSIAN FORESTS ARE PLACES OF establishing new forests or plantations, or increasing ADVENTUREthe growth of existing forests through silviculturalinterventions. Over long time periods (> 50 years), the To raise general awareness and knowledge on thedisplacement of fossil fuels either directly, or through importance of ecotourism in National and State Parksproduction of low-energy-intensive wood products, is and Amenity Forests [functional classes of PFRlikely to be more effective in reducing carbon emissions under Section 10(1) of the National Forestry Act 1984than physical storage of carbon in forests or forests (Amended 1993)], there must be sufficient opportunitiesproducts. to allow people to have direct and first-hand experiences on the wonders of forests and their economic, ecological, Malaysia’s best practices approach to forest spiritual, cultural and aesthetic importance. Suchmanagement has been able to conserve biological experiences must be planned to endear the public toresources and carbon stocks by avoiding the nature, thereby promoting healthy quality of life.deforestation and forest degradation. This is illustratedby the fact that the area of Malaysian forest under the The rise in park tourism and outdoor adventure sportsPRF has not changed substantially in the last 10 years. is testament to the greater recreational use of forests.A conservative and cautious approach will be adopted National and State Parks continue to improve facilitiesto ensure that a clear and fair mechanism is developed and programmes to cater to foreign and local interests.that will address the issues dealing with leakage, The popularity of mountain biking, rock-climbing,permanence and additionality that recognises the socio- rafting and kayaking and other special uses demandseconomic impacts to developing tropical countries with additional recreational and better management torelatively large areas of forests and where forestry is an avoid environmental conflicts. The concept of forest-important economic sector. Reducing emissions from stay or “forest-camping”, akin to the present “home-tropical deforestation/ forest degradation can take any stay” program in lieu of city hotel accommodation, hasof the following three avenues: a great potential in park tourism. There are a number• setting aside and protecting forested land with any of forest recreation areas operated by State Forestry Departments that buffer the flood of urban and rural degree of forest cover; outdoor enthusiasts to lessen the overall impacts of• ensuring that minimal forest degradation occurs in tourism. Appendix 5 lists National and State Parks and number of Amenity Forests in Malaysia. permanent production forests (no land-use change) through sustainable forestry practices; and 135

MEGA SCIENCE 2.0 Environment Sector6.14 PAYMENT FOR ENVIRONMENTAL SERVICES assessment, valuing alternative land use option, priorityPayment for Environmental Services (PES) is a setting for conservation and management of naturalmechanism to allow the provision of indirect ecosystem resources and environment, and national incomeservices in which those provide environmental services account, must be given serious attention. Economic(the provider) should be compensated for doing so and valuations of marine and agriculture ecosystems arethose who receive these services (the users) should pay not as advanced as terrestrial or forest ecosystem, thefor their provision. In the year 2006, the New Sunday former of which need to be strengthened and enhanced.Times published a statement from the then Minister of Nonetheless, Appendix 6 shows the extent of monetaryNatural Resources and Environment, Malaysia to states: values associated with the payments for environmental services (Awang Noor). “Focus on tourism, not timber: We cannot wait foreverand continue to earn from logging. For how long do theywant to depend on it? ... hoped that the States wouldcome up with proposals on how they planned to reducelogging before phasing it out altogether...”. (Thoughpossible for implementation – in the context of presentconstitution/ legislations and legal framework, etc., it willbe a long way before PES can be fully implemented inMalaysia (EPU 2012)). What is PES good for? Forests provide a multitudeof tangible goods and environmental services. Timberis the most obvious tangible due to its potentiallydetrimental environmental and social impacts whennot properly managed. Services include regulation ofecological cycles such as water, carbon/ carbon dioxide,protection of climate and soil resources, conservationof biological diversity, provision of eco-tourism andrecreation services, as well as provision of cultural,spiritual and social services. In Malaysia there seemsto indicate PES activities are being implemented to alimited scale in biodiversity conservation, watershedprotection, carbon sequestration, and landscape/seascape beauty (EPU 2012). What are the real problems in the valuation ofenvironmental services? Many studies on economicvaluation of natural resources and ecosystem serviceswere carried out by many researchers at the universities,research institutions, government departments andagencies, and NGOs. Nevertheless, the applicationsof these results for effective implementation of PESare still limited, for which R&D efforts – in the areas ofbenefit cost analysis, compensation/ natural resource 136

MEGA SCIENCE 2.0 Environment Sector6.15 MAJOR FORCES TO DRIVE FOREST TRANSITIONSee Appendix 7.6.16 SCIENCE, TECHNOLOGY AND INNOVATION: REFLECTIONS AND POLICY RECOMMENDATIONSScience, Technology and Innovation Development of STI Opportunitieson Land & Forests 2013-2020 2021-2035 2036-2050 (Short term) (Medium term) (Long term)STI#1. Wood Consumption and A reduced availability A reduced availability A reduced availabilitySustainable Timber Production: commensurate with the level commensurate with the commensurate with of sustainable log production level of sustainable log the level of sustainableSustainable production of second and from the natural forests: 20 production from the log production fromsubsequent growth natural forest is million m3/year. natural forests: 17 - 18 the natural forests: 17from 17-18 million m3/year; the actual million m3/year. - 18 million m3/year.average production was around 28 Put the system of PES inmillion m3/year. place to complement and supplement the incomes derived from the forests.STI#2. Review Government Policies Reduce AAC Limit the logged volume \"on AAC & Maximum Extractable to about 40-50m3/ha netVolume: Practice sustainable and via strict volume control improved logging techniques, mechanism.AAC is more than what the forests e.g. reduced impact logging,can sustainably yield. Breakeven (RM) low impact logging, etc.net harvest volume (under SMS) =21m3/ha. National averaged volumelogged= 62-85 m3/ha. The windfallprofit is already obvious under presentpractices.STI#3. Maintaining and Improving Maintain the NBI Maintain the NBI Maintain the NBIMega-Diversity Status:Currently Malaysia is at 12th positionwith NBI=0.809. NBI < 0.800 willdisqualify a country from being listedas a Mega-Diverse country. 137

MEGA SCIENCE 2.0 Environment SectorScience, Technology and Innovation Development of STI Opportunitieson Land & Forests 2013-2020 2021-2035 2036-2050 (Short term) (Medium term) (Long term) Investment ploughsSTI#4. Ensuring and Allocating Investment ploughs back into Investment ploughs back into the forestSufficient Government Incomes the forest development = 1% back into the forest development = 2.0%Derived from Harvesting of Timbers of GDP development = 1.5% of of GDPto Finance Increasing Costs of GDPReforestation, Afforestation, and Practice intensive natural \"Other Practices of Sustainable forest management or growForestry: resources via industrial plantations.Current trend of financial investmentploughed back into forestsdevelopment is minimal, averagingless than 1% of GDPSTI#5. Ensuring “Equitable Green Price” For Certified Timber and \"its Products:Current certified timber and timber products obtain a green pricepremium of only between 3-10% over the uncertified timbers.Proposing or leading a timber organisation to control and manage anequitable tropical timber pricing internationally – just like what OPECdoes to manage or influence petroleum price.STI#6. Production Efficiency and The outdated machinery must Manufacturing ManufacturingProductivity & Product Diversification: be upgraded or replaced. recovery increases recovery increasesGenerally, production efficiency in Mill wastes must be converted between 70-80% and beyond 80% andthe timber sector in Malaysia is low. to more effective use and high harvesting losses reduce harvesting lossesSawmills and plywood mills achieved value products. to less than 30%. reduce to less thana recovery rate of less than 60%; 20%.Harvesting losses are estimated to Manufacturing recovery Timber manufacturersbe as high as 50% of the commercial increases between 60-70%. need to obtain up-to-date Forestry becomestree volume in Malaysia. Traditional market information on an industry ofmarkets have to be supplemented Harvesting losses reduce to designs and consumers environmental andwith new markets; Forestry was a less than 40% preference, focusing on socio-economicsunset industry. quality and cost-saving importance. manufacturing. New and improved products developed. 138

MEGA SCIENCE 2.0 Environment SectorScience, Technology and Innovation Development of STI Opportunitieson Land & Forests 2013-2020 2021-2035 2036-2050 (Short term) (Medium term) (Long term) \"STI#7. Increasing Business Companies to lower their risk \"Opportunities via Quality and and enhance their image, `` (ditto mark)Environmental Management market share and competitiveSystems: position by implementing a proactive quality andRegulatory, market and public environmental managementinterest in corporate environmental strategies, e.g. ISO 9001 QMSperformance is growing, as can & ISO 14001 EMS.be seen by the increasing mediacoverage of issues such as climatechange, product legislation, recycling,publication of company environmentalreport, certification and SFM.STI#8. Increasing Cost of Provide companies `` (ditto mark)Production & Pressure on Forest practicing sustainable forestProduct Companies: management and sustainable products manufacturing withMalaysia’s economy is experiencing tax incentives involving land,the perils of a developed economy in technologies acquired orthe form of labour scarcity and higher developed, and R&Dcosts; has to compete with othercountries in every aspect of its forestryand manufacturing activities leadingto a low price advantage of productsmanufactured in those countries.Companies are highly vulnerable toenvironmental issues because theydepend almost entirely on forests asnatural resources for inputs. 139

MEGA SCIENCE 2.0 Environment Sector6.17 CONCLUSION AND WAY FORWARD iii) incorporate land and forests with respect toThe future development of land and forests has to water, energy, waste, and carbon and climate,be integrated and synchronized with other changing and biodiversity concerns into other immediateexternal environments, vis-à-vis water, energy, waste, issues, such as employment, defence, economicand carbon and climate. The need to ensure that forestry development, and public health; andsector will continue to be the responsibility of both theFederal and State Governments is beyond any doubts iv) direct resources into identifying vulnerability andin order to bring about the socio-economic development promoting resilience, especially where the impactto the States and nation and the highest quality of would be the largest.life of its people. Concerns over the future of foreststranscend national boundaries and forests are going tobe extremely important. A way forward at this juncturewhen dealing with forests in the context of environmentis to ask a basic question: What can public and private decision makers learnfrom a wide-ranging look at the social sciences andthe issues of human choice and environment (e.g.land and forests, water, energy, waste and carbon andclimate) that illuminates the evaluation of policy goals,implementation strategies, and choices about thepath forward? At the present moment, most proposedpolicies, roles, strategic directions and action planshave focused on the development and implementationof inter-governmental agreements on immediateemission reduction, sustainable forestry, biodiversity,and other environmental issues. In the spirit of cognitiveand analytical pluralism, Malaysia should also lookbeyond the present policy priorities to see if there shouldbe adjustments and changes, either partially or wholly,by considering the following suggestions for public andprivate decision making by policy makers: i) view the issue of land and forests with respect to water, energy, waste, and climate change holistically, not just as the problem of emission reduction; ii) prepare for the likelihood that social, economic, and technological change would be more rapid and have a greater direct impact on human population than climate change and biodiversity conservation; 140

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7CHAPTER 7 MEGA SCIENCE 2.0 Environment SectorSCIENCE, TECHNOLOGY AND INNOVATION FORTHE ENVIRONMENT7.1 INNOVATION OPPORTUNITIES AND MODELS until they have sufficient proof of concept to convinceEnvironmental issues offer numerous opportunities for others, especially venture capitalists, to support them.science, technology and innovation. A list of research Hence, the personal motivation of innovators has to beand innovation possibilities is compiled at the end of exceptionally high. Added to that, different societies havethis chapter for ease of reference. This list is based on difference tolerance levels for unconventional ideas andwhat is reasonable and logical. However, the nature of personalities, and this may contribute to the differentinnovation is such that progress based on what is rea- levels of innovation observed for different countries andsonable and logical would normally be in small incre- reflected in the international indices for innovation.ments. Small incremental advances can add up to makebig advances. In spite of that, the biggest advances are The market for innovation is global – making theoften the unexpected ones, as they are unexpected, and competition to innovate also global. There is an obvioushave revolutionary consequences. Such revolutionary link between innovation and economic development.breakthroughs are the result of unconventional thinking In any listing of innovation by countries, the most‘out of the box’, and doing what conventional wisdom economically advanced countries are also the countrieswould regard as foolish. We obviously cannot provide a in which the most innovations originate. Not with standing,list of foolish things to do or even encourage anyone to many countries have tried to promote innovation, usingdo anything foolish. Silicon Valley as their model, with hardly any having come close to the impact of Silicon Valley in their ability Unconventional ideas have to be worked on quietly by to attract innovators. To illustrate, Japan had set up aninnovators in their own time and at their own expense ultra-modern Science City in Tsukuba. Other countries, 143

MEGA SCIENCE 2.0 Environment Sectorincluding Malaysia, have set up Technology Parks. The closest to an IT hub in Malaysia is Low Yat PlazaMany universities have set up incubation centres in in Bukit Bintang, Kuala Lumpur, but this is a retailtheir campus grounds. These efforts have been mostly hub, not an innovation hub. However, Low Yat Plazainfrastructure-driven and sooner or later, they settle has knowledgeable people in the repair business whodown into a conventional property-management mode. could be innovators given the right conditions. With theThe technology firms that move in would, if successful right kind of encouragement it might develop into an ITin their business models, put down roots and pay rents innovation hub.for continuing to occupy their premises. On their part,the property owners find it easier to be landlords than In agriculture, Cameron Highlands has become a veryto deal with cash-strapped innovators. As a result, such active innovation hub. Here are thousands of farmersartificially-created Silicon Valleys do not attract the growing all kinds of crops, from vegetables to fruits andinnovators that they were originally meant to attract. It flowers, for export and for local consumption. Everyhas been noted that budding innovators in Silicon Valley available bit of land is used, under open sky as well as intypically live cheaply, work long hours, socialise with green houses that allow fine control of light and wateringother innovators and can hardly afford to pay rent. regimes. Suppliers of agrichemical and agricultural equipment and chemicals are concentrated here. The Promising new kinds of innovation hubs or older generation of lowly-educated but innovative‘ecosystems’ in the IT world have now come into farmers is being replaced by college graduates who areexistence in many cities and some are described in The no less innovative. The conversation in the coffee shopsEconomist of January 18.2014. Location-wise, the one is about farming. This is the kind of social atmosphereclosest to Malaysia is Block 71, a seven-storey building that characterises an innovation hub.in Ayer Rajah Crescent, Singapore, that had beenslated for demolition. It is now home to over 100 start-up The lesson to be learnt is that innovators createcompanies that develop software. Software companies their own communities in places where the social andare relatively easy to start up because software physical conditions are right for them. Innovators have adevelopment does not require expensive infrastructure. synergistic effect on each other and attract each other. They need critical mass of numbers to attract the kinds For IT hardware innovation, Shenzhen in Southern of service providers that they need. The GovernmentChina has become the world’s busiest hub for reasons can help by recognising innovation hubs no matter whatthat are peculiar to Shenzhen. Most of the world’s form they take and providing supporting infrastructuraldigital devices are manufactured and assembled in services such as roads, electricity and water, but toShenzhen. All the components that go into digital a large extent an innovation hub is a community thatdevices are available here;any as open-source regulates itself. External attempts at regulation could becomponents unencumbered by intellectual property counter-productive.rules. These components can be used as buildingblocks in innumerable ways to create all kinds of new Independent innovators can thrive in IT and agriculturearchitectures, like LEGO building blocks that can be without institutional support because the cost of testingassembled in innumerable ways. There are whole ideas and coming up with proofs of concept is not high. Inshopping malls in Shenzhen dedicated to components environmental matters covering climate change, water,from screws and cables of all kinds to circuit boards, energy, waste and forest management, institutionalchips, LEDS, and more advanced components. There support would be necessary because of the need forare service providers who can fabricate anything to expensive equipment, land and man-power for relativelyorder, cheaply and quickly. As a result Shenzhen has long periods of time. Nonetheless, the institutionsattracted hardware innovators from all over the world. that have been set up for research have a number of deep-seated problems that need to be recognised and addressed. 144

MEGA SCIENCE 2.0 Environment Sector One issue is that most existing institutes in Malaysia The third problem is the absence of a DIY (dohave no special mandate for research on environmental it yourself) culture. Great emphasis is placed onissues. This shortcoming can be rectified by allowing paper qualifications. Good innovators without theall of them to expand or reinterpret their mandates to paper qualifications do not get adequate recognition.cover environmental research. Most of the existing Technicians who are good at repairing, and modifyingresearch institutes have staff of different disciplines, e.g. equipment are not recognised and rewarded for theirbiology, chemistry, physics and engineering, which can skills. In all scientifically advanced countries scientificform interdisciplinary teams for environmental research, innovation includes the modification and design ofand most research institutes already have the basic equipment. Malaysia imports nearly all of its scientificlaboratory equipment for many kinds of analytical work. equipment. Such equipment is often not optimal for a tropical humid environment and break down easily. The second issue is much more difficult to deal with.Social scientists have found that institutions develop The technicians who repair the equipment should get todistinctive institutional cultures and it is very difficult to know what the weaknesses are and if encouraged to dochange an established institutional culture. Malaysia’s so, could innovate improved versions. Such techniciansresearch institutions were not designed and managed and their scientific bosses should be constantly tinkeringas innovation hubs. Hence, knowledge of how manage with equipment. Instead there is such a fear of equipmentan innovation hub is lacking. Managers are promoted breakdown in Malaysia that sensitive equipment areby seniority. Furthermore, research is done with no locked up and guarded jealously until they become outsense of urgency. Competition in research has been of date or inoperable. This became obvious during theeliminated on the grounds that duplication is wasteful nipah virus epidemic, when researchers trying to locateand research efforts should not be duplicated. Hence, electron microscopes found that most of the electrondue to lack of competition there is no comparative data microscopes in Malaysia were safely locked up andon performance, No scientist has ever been reprimanded unserviceable. In scientifically advanced countries,or terminated for being unproductive. the equipment is fully utilised, repaired and used again around the clock. The technicians get better and better In Life Sciences such as agriculture and forestry, at maintaining equipment and improving them. A newthe outmoded colonial model of institutional research and improved model then appears on the market. Theis still predominant, half a century after independence. ‘protective’ users of equipment have to keep buyingScientists in Sarawak work on Sarawak issues, those in new versions and never learn the secrets of equipmentSabah work on Sabah issues and those in Peninsular innovation.Malaysia work on Peninsula issues. In any internationalconference in the life sciences, Malaysian scientists tend The universities could be centres of research andto be ranked below ‘international’ scientists from USA, innovation and some of them have been speciallyJapan, Europe, Australia, and now Singapore because designated as research universities. University scientiststhey lack a world view. All of our research institutions have considerable freedom to do research, andare used to hosting visiting scientists from overseas, but inspirational professors are in a position to gather post-the Malaysian funding system does not allow Malaysian graduates around themselves to form research hubs.scientists to work in neighbouring countries as visiting Nevertheless, the focus in universities is to produce newscientists to strengthen their expertise. In developed knowledge in publishable form, which is not the samecountries an expert is expected to be driven by ambition as to producing innovations that can be implemented into be a global expert. In developing countries, the practice. And, for that matter, universities alone cannotambition to become local expert is already considered a provide sufficient impetus for innovation. great ambition. 145

MEGA SCIENCE 2.0 Environment Sector7.2 RANKING OF INNOVATION 7.2.2 FACTORS OF EVALUATION7.2.1 THE RANKING OF COUNTRIES BY THE The factors used in evaluation and their weightings are BLOOMBERG INNOVATION INDEX as follows:The level of innovation in a country is widely perceived to R&D intensity (20%): Research and developmentoffers a good measure of national strength in innovation. expenditure as a percentage of gross domesticThe Bloomberg Index of 2014 (www.bloomberg.com/ product.slideshow/2014-01-22/30-most-innovative-countries.html) provides a ranking of 215 countries using seven Productivity (20%): GDP per employed personweighted factors and the most recently available data. age 15 and over. The 30 most innovative countries are as follows, with High-tech density (20%): The number of high-techSouth Korea ranked as the most innovative: public companies – such as aerospace and defence, biotechnology, hardware, software, semiconductors,• South Korea • Austria Internet software and services, and renewable• Sweden • Russia energy companies – as a percentage of all publicly• United States • Belgium listed companies.• Japan • New Zealand• Germany • Luxembourg Researcher concentration (20%): The number of• Denmark • Italy professionals, including Ph.D. students, engaged in• Singapore • Czech Republic R&D per one million people.• Switzerland • Poland• Finland • China Manufacturing capability (10%): Manufacturing• Taiwan • Hungary value added as a percentage of GDP and as a share• Canada • Hong Kong of world total manufacturing value added.• France • Ireland• Australia • Portugal Tertiary efficiency (5%): The number of secondary• Norway • Israel graduates enrolled in post-secondary institutions as a percentage of cohort; the percentage of the labour force with tertiary degrees; annual science and engineering graduates as a percentage of the labour force and as a percentage of total tertiary graduates. Patent activity (5%):  Resident patent filings per one million residents and per $1 million of R&D spent; patents granted as a percentage of the world total. (Sources: Bloomberg, International Monetary Fund, World Bank, Organisation for Economic Co-operation and Development, United Nations Educational, Scientific and Cultural Organisation, U.S. Patent and Trademark Office, World Intellectual Property Organisation).• Netherlands• United Kingdom 146

MEGA SCIENCE 2.0 Environment Sector7.3 SUPPORT FOR INDEPENDENT INNOVATORS worthwhile innovation. This amount of prize money paidIt is difficult to be an independent innovator. Apart from for an innovation that has a good chance of taking offhaving to support themselves through the innovation could be a much better deal.phase they face tough problems in the commercialisation 7.4 LIST OF OPPORTUNITIES FOR RESEARCH,phase. Patenting is also a double-edged sword. Patentsare time-consuming and expensive to obtain. Innovators DEVELOPMENT AND INNOVATIONnot only need to be aggressive in defending their patents This is a list of opportunities extracted from the variousbut may also face legal challenges themselves over chapters in this study. It is not an exhaustive list, therealleged patent infringements. Big organisations have a are many more ideas may be extracted by rereading thebig advantage over small independent innovators in the relevant chapters.aggressive use of the patenting system. Carbon and Climate • Replacement of coal by wood for generation of To promote independent innovation in the IT world,business schools have emerged which provide electricity:innovators with advice, training and mentoring and • Adaptation of coal-burning plants to wood-burningproviding a forum in which innovators can make theirpresentations to interested parties and potential venture for generation of electricity;capital investors. The accelerators are run as businesses • Development of accelerated systems for growingand charge a fee for a course that typically runs forthree months.The volume of innovation has probably wood for fuel, including plant breeding, crop rotationnot reached a sufficient level in Malaysia to create a and soil management;demand for such business schools or ‘accelerators/ as • Develop more efficient ways to grow trees on wastethey prefer to be called. land, road sides and parks; • Develop more efficient harvesting and post-harvest Another model to promote innovation is being tried in processing technologies for a wood-pellet industry;Oxford University, which is not a conventional university • Improving the design of new buildings andbut an amalgamation of autonomous colleges. One of modification of old buildings to reduce cost of airthe best known of these colleges is Wolfson College conditioning;which is a college catering solely to graduate students • Improving the energy-efficiency of machines andpursuing Masters and Doctoral degrees. It opened in manufacturing processes; and1969 and has now produced thousands of MSc and DPhil • R&D to develop a biochar or horticultural carbongraduates (an Oxford PhD is designated as DPhil). This industry for carbon sequestration and soilyear, it started a programme called Wolfson Innovate improvement.in which all Wolfson members and fellows are invitedto make presentations about their creative ideas. Theyhave to submit written outlines from which a selectionwill be chosen for oral presentation before an audienceand a panel of judges. Winners will be awarded cashprizes of up to £5000. Indeed, this model is one that ASM could adopt as anexperiment to try out on its fellows and associates. Incontrast, a salaried scientist paid RM3K per month costsRM36K per annum to support and may not produce any 147

MEGA SCIENCE 2.0 Environment SectorWater • R&D on waste treatment and clean manufacturing• Water supply and demand: technology for solar cells and panels• R&D on availability, potential and management of • Development of high capacity and cost-effective groundwater sources. energy storage technologies• Technology to detect and fix water leakage in • R&D on thorium-based nuclear power distribution systems. • R&D on cogeneration and trigeneration of power• Development of rainwater harvesting technologies.• Water pollution control: and heating and cooling duties• R&D on non-point source pollution control Waste• R&D to support revision of existing pollution control • Innovation of accelerated composting technologies standards in accordance with local climatic and biotic conditions• Development of automated monitoring instruments • Research on ways to promote separation, collection and networks and recycling of waste• Research on effects of novel and new pollutants • Research and innovation for use of biomass waste• Advanced water and wastewater treatment systems:• New water treatment technologies for the generation of methane for energy• New sewage treatment technologies • Research and innovation for composting of chicken• Water and green growth:• Development of water sensitive designs dungEnergy Land and Forests• R&D on treatment and fermentation of agricultural • Research to increase the productivity of second, biomass third and subsequent generation forests.• R&D on integrated system for biogas recovery and • Research for effective management of forests microalgae cultivation for biodiversity, scenic conservation and outdoor• R&D on integrated solid waste management recreation / tourism. • Research to determine economic harvest level approach of natural forests under different scenarios and research on PES. • Research on reducing harvest loss, increasing manufacturing recovery and innovating new product designs 148

MEGA SCIENCE 2.0 Environment SectorAPPENDICES 149

MEGA SCIENCE 2.0 Environment SectorAPPENDICES Culturing microalgae (with high or low lipid content)Chapter 4 requires the least land area compared to other oil cropsAPPENDIX 1 such as soybean, sunflower, rapeseed, and oil palmPotential of microalgae in meeting the European Union (EU) biofuels target inThe potential of microalgae cultivation for biofuels year 2010. In addition, microalgal biofuels obviate theproduction can be seen in Table A1 in the Appendix. sustainability concern arising from the food versus fuel issue due to use of edible oils to produce biofuels (Lam & Lee 2011). Table A1. Comparison of Oil Yield for Various Oil Bearing Plants and MicroalgaeOil crop Average oil yield Area to meet EU Share of MalaysianSoybean (ton/ha/year) biofueldemand in 2010 agricultural land area (million ha)a (%)b 0.4 25.0 379Sunflower 0.46 21.7 329Rapeseed 0.68 14.7 223Oil palm 3.62 2.8 42Jatropha 4.13 2.4 37Microalgae with high lipid content 126 0.1 1Microalgae with low lipid content 54 0.2 3Notes:a EU biofuel target in year 2010 is equivalent to 10 million ton.b Total agricultural land area in Malaysia is equivalent to 6.6 million ha. 150

MEGA SCIENCE 2.0 Environment SectorChapter 5 APPENDIX 2APPENDIX 1 Role of Composting CouncilsPlanning incentives for better waste management in Composting councils are a necessary tool ofMalaysia governments to promote government’s environment policy to the people and to promote and bring all ‘green’1. Prevention of generation of waste; reduction of ideas from the people of the world to the governments. volume of waste, introduction of ‘separation’ of Composting Council activities can create new jobs with waste in cities into the following: the development of new composting industry. A. Household waste (for composting) B. Glass: to be recycled. Many countries recognise the need to coordinate C. Plastics: to be recycled composting activities at national and regional level. D. Metals: to be recycled There are many composting councils which are situated E. Paper: to be recycled all over the world. They include: D. Others including woods: to be burned to produce • US Composting Council energy • Canada Composting Council • European Composting Network2. Increase of landfill tax for disposal by 10% • Darwin City Council3. Increase of landfill tax by 50% for disposal of organic • Washington Organic Recycling Council • Composting Council of Oregon waste such as food • North Carolina Composting Council4. Provide incentives for Palm Oil Mills to eliminate • Recycling Council of Alberta • Pennsylvania Resource Council their landfills filled with EFB, Ash, Shells, mesocarp • Recycling Council of Ontario fibres, POME etc. • Bristol City Council5. All landfills and chicken dung composting plants and • Composting Garden Waste Council other anaerobic facilities which produce odour have • Leister City Council: composting competition, to be forced to install bio filters6. Initiate recycling of E-wastes Belfast City Council: waste collection7. Implement official policy to recycle Palm Oil Mill • Manchester City Council: should we compost, wastes using zero waste composting systems like in Indonesia. Dunedin City Council, West Sussex County Council, Ceredigion County Council, Norwich City Council, Wire Borough Council, Coventry City Council, Bassetlaw District Council, Davenport City Council, South Oxfordshire On line Council, Ipswich City Council, The Guardshille Council, Detroit Council, Renwick City Council, Christchurch City Council, Compost Advisory Council etc. 151

MEGA SCIENCE 2.0 Environment Sector The main activities of Composting Council in rich • to minimise erosion rate, increase soil bioremediationplant biomass countries such as Malaysia should be as and reduce the number of landfills in Malaysia;following: • to develop new composting technologies to use• to support and strengthen government ecological degraded and accumulated biomass in landfills of policy; Malaysia;• to develop standards for production of high quality • to support farm scale composting, home composting, composts and to control quality of composts in the composting of food and green wastes and to Malaysian markets; coordinate introduction and development of organic agriculture in Malaysia;• to review and assess the applied composting technologies in Malaysia to produce a high quality • to promote and support expansion of the compost compost as a waste management practice; market;• to conduct inspections on all composting plants • to organise public support of all kinds of composting related to the hygienic norms and future development and utilisation of all kinds of organic wastes for of compost standards; composting;• to increase the number of working places in the • to organise conferences, discussions, exhibitions, emerging new composting industry in Malaysia; compost trade shows and workshops;• to promote strong environmental ethics, an • to coordinate research on the relationship: entrepreneurial spirit and demonstrate that composting-soil-air-biodiversity-plant yield; environmental protection and economic development come and work together in the composting industry • to support customer confidence in compost selection and support good business practices; and utilisation;• to organise and coordinate composting of all wastes • to coordinate government and non-profit of government mills and to support and coordinate organisations in education and training of a young CDM Projects. At present, the largest amount of generation for composting of wastes; income from CDM Projects are going mainly to foreign holdings and less to private companies in • to promote business contacts between composting Malaysia; people;• to influence people to make, buy and use compost • to develop certification programmes and organise thus creating a demand that leads to a larger Assurance programmes; commercial market and expand commercial scale composting and mulching businesses; • to promote recognition of compost application as the best method to adapt present agriculture to negative• to provide policy to protect the environment from influence of climate change and reduce the strength pollution: soils, waters, air and biodiversity; and number of such negative factors as heat waves, worm nights, intense droughts, flooding’s,• to promote more efficient utilisation of plant biomass competition of weeds and expansion of pathogens which is in large amount in Malaysia but percentage and insect pest ranges; and of effective utilisation is small; • to participate in Global Recycling Network. 152

MEGA SCIENCE 2.0 Environment SectorChapter 6 • The conservation of adequate forest areas forAPPENDIX 1 recreation, education, research and the protectionThe National Forestry Policy 1978 (Revised 1992) in of the country’s unique flora and fauna, suchBrief forest lands being known as ‘amenity forests’.Malaysia has yet to adopt a truly National Forestry Policy(NFP) which covers the whole country. Nevertheless, • To manage the Permanent Forest Estate with thea National Forest Policy for Peninsular Malaysia was objective of maximising social, economic andapproved by the National Forestry Council (NFC) and environmental benefits for the Nation and its peopleendorsed by the National Land Council (NLC) in 1978. in accordance with the principles of sound forestThe NFP has been adopted by all the States in Peninsular management;Malaysia and is supported by Sabah and Sarawak whichhave forestry policies with similar objectives. • To pursue a sound programme of forest development through regeneration and rehabilitation operations The objectives of this policy are being strictly adhered in accordance with approved silvicultural practicesto by the State authorities and the NFC is kept informed in order to achieve maximum productivity from theof all forestry development activities implemented Permanent Forest Estate;in the various States. The National Forestry Policyensures uniformity in the implementation of all forest • To ensure thorough and efficient utilisation of forestmanagement, conservation and development strategies resources on land not included in the Permanenttowards achieving common objectives. The objectives Forest Estate, prior to the alienation of such land,of the National Forestry Policy are as follows (National by means of proper coordinated planning by landLand Council 1978): development agencies in order to obtain maximum benefits for the people through complete harvesting• To dedicate as Permanent Forest Estate sufficient and processing of such resources, adhering strictly areas of land strategically located throughout the to the optimum need of local processing industries; country in accordance with the concept of rational land use in order to ensure: • To promote efficient harvesting and utilisation of all forms of forest produce and to stimulate the• Sound climatic and physical conditions of the development of appropriate wood-based industries country, the safeguarding of water supplies, with determined capacities commensurate with the soil fertility and environmental quality and the resource flow in order to achieve maximum resource minimisation of damage by flood sand erosion to utilisation, create employment opportunities and river sand agricultural lands, such forest land being earn foreign exchange; known as ‘protective forests’; • To ensure the sound development of trade and• The supply in perpetuity at reasonable rates of all commerce in and to promote the exportation of forms of forest produce which can be economically forest products; produced within the country and are required for agricultural, domestic and industrial purposes, such • To promote effective Bumiputra participation in the lands being known as ‘productive forests’;and forest and wood-based industries consistent with government policy; • To undertake and support an intensive research program in forest development aimed at achieving maximum yield from the Permanent Forest 153

MEGA SCIENCE 2.0 Environment Sector Estate, maximum direct and indirect benefits from and private sectors; education in forestry and undertake harvesting and utilisation and, above all, maximum publicity and extension services; and comprehensive financial return on investment in forest development program in community forestry to cater for the needs of activities; the rural and urban communities.• To undertake and support a comprehensive program of forestry training at all levels in the public sector in order to ensure an adequate supply of trained manpower to meet the requirements of forestry and wood-based industries;• To encourage private sector involvement in forestry research and training at all levels with a view to accelerate industrial development and enhance the quality of professionalism in forestry and forest industrial practices;• To foster, by education and publicity, a better understanding among the community of the multiple values of forests to them and their descendants; and• To foster close co-operation among all in order to achieve optimum utilisation of the valuable natural resources of the country. The Forest Policy of Sarawak, approved by theGovernor-in-Council in 1954, remained the basis forforestry practices in that State (Government of Sarawak1954). Similarly, the State Forestry Policy of Sabahserves as a guideline for the sustainable management ofthe forests; for planning and implementation of ForestryDepartment activities; and for promotion of awarenessof the values of forests (Sabah Forestry Department1989) The National Forestry Policy 1978 (Revised in 1992)contains many salient features involving ‘permanentforest estate’ (with protection, production, amenity, andresearch and education functions); regeneration andrehabilitation operations; development of appropriateforest industries; production of non-wood forestproduce; conservation of biological diversity and areaswith unique species of flora and fauna; establishment offorest plantation by private sectors; intensive researchprograms in forestry and forest products; comprehensiveprogram of forestry training at all levels for the public 154

APPENDIX 2 MEGA SCIENCE 2.0 Environment SectorA Typical Land Use Pattern in Peninsular Malaysia Rubber Oil Palm Cocoa & Coconut Tea Paddy Mixed Agriculture Various Crops Orchad Vegetable Patches Neglected Grassland Forest Swamp & Mangrove Forest Cleared Area Husbandary Mines River, Drainage, Lakes, Ponds Roads Urban State Boundary 155

MEGA SCIENCE 2.0 Environment SectorAPPENDIX 3Definition of Forests Malaysia uses the current FAO definitions of various land cover classes, e.g. total area, forest, other wooded landand other land as defined below:Land cover class DefinitionTotal area1 Total area (of country), including area under inland water bodies, but excluding offshore territorial waters.Forest Land with tree crown cover (or equivalent stocking level) of more than 10% and area of more than 0.5 hectares (ha). The trees should be able to reach a minimum height of 5 meters (m) at maturity  in situ. May consist  either  of closed forest formations where trees of various storeys and undergrowth cover a high proportion of the ground; or open forest formations with a continuous vegetation cover in which tree crown cover exceeds 10%. Young natural stands and all plantations established for forestry purposes which have yet to reach a crown density of 10% or tree height of 5 m are included under forest, as are areas normally forming part of the forest area which are temporarily unstocked as a result of human intervention or natural causes but which are expected to revert to forest. Includes: forest nurseries and seed orchards that constitute an integral part of the forest; forest roads, cleared tracts, firebreaks and other small open areas; forest in national parks, nature reserves and other protected areas such as those of specific scientific, historical, cultural or spiritual interest; windbreaks and shelterbelts of trees with an area of more than 0.5 ha and width of more than 20 m; plantations primarily used for forestry purposes, including rubberwood plantations and cork oak stands. Excludes: Land predominantly used for agricultural practicesOther wooded land Land either with a crown cover (or equivalent stocking level) of 5-10% of trees able to reach a height of 5 m at maturity in situ; or a crown cover (or equivalent stocking level) of more than 10% of trees not able to reach a height of 5 m at maturity in situ (e.g. dwarf or stunted trees); or with shrub or bush cover of more than 10%.Other land Land not classified as forest or other wooded land as defined above. Includes agriculturalInland water land, meadows and pastures, built-on areas, barren land, etc. Area occupied by major rivers, lakes and reservoirs.1) The Total Land Area is defined as the Total Area, but excluding Inland water. 156

MEGA SCIENCE 2.0 Environment SectorAPPENDIX 4Main Vegetation/ Forest Types in Peninsular Malaysia, Sabah and SarawakMAIN FOREST TYPES IN SABAH 157

MEGA SCIENCE 2.0 Environment SectorAPPENDIX 5National Parks in Malaysia1. Peninsular Malaysia Forest Area (ha) Taman Negara (Pahang, Kelantan and Terengganu) 434,3402. Sabah 75,370 Kinabalu Park 1,289 (+ 3640 ha Coral Reef) Tunku Abdul Rahman Park 15 (+ 1725 ha Coral Reef) Pulau Penyu Park 607 (+ 15,257 ha Coral Reef) Pulau Tiga Park 27,972 Bukit Tawau Park 139,919 Crocker Range National Park 2,7283. Sarawak 3,139 Bako National Park 52,866 Niah National Park 6,950 Gunung Mulu National Park 7,064 Lambir Hills National Park 5,430 Similajau National Park Gunung Gading National ParkNumber of Amenity Forests and State Park Forests in Peninsular Malaysia}No. State No. of Amenity Forest No. of State Park Forest1 Johore 8 -2 Kedah 27 -3 Kelantan 3 14 Melaka 4 15 Negeri Sembilan 11 -6 Pahang 28 17 Perak 16 -8 Perlis 3 19 Pulau Pinang 2 110 Selangor 10 1*11 Terengganu 11 -12 Kuala Lumpur FT 1 -*All Amenity Forests are located inside the State Park Forest, known as Taman Warisan Negeri Selangor 158

MEGA SCIENCE 2.0 Environment SectorAPPENDIX 6Payments for Environmental Services (PES)Total Economic Value (TEV) of some Forest Goods and Services in the North Selangor Peat Swamp Forest (Net Present Value at 8% discount rate)No Good/Service NPV at 8% Note (RM million)1 Timber 321.21 26.649 ha are commercial forrests2 Hydrological 109.56 Iriigation water accounted for 99% of the hydro- logical value3 Carbon: 583.33 A value of RM14 per Ct was used Above ground 99.03 Below ground4 Ecotourism 1.78 WTP of RM1.42 per peson used5 Fish 2.08 Based on fishing in Sg. Tengi and main canal.6 Asam Kelubi 0.023 Based on socio-economic survey by Lim et al. (1998)7 Total social value 113.437 (10%) Item 2+4+5+68 Total global value 682.36 (61%) Item 39 Total private value 321.21 (29%) Item 1 Grand Total 1,117.01Source: AG Awang NoorPmEecaonmMPEnnicegnaaoonrslnaomniugnyvolirssaecmouirsavvliaecMaarsvllauoaalenalluosgyensosgiafof UsUesveavlualeuses Gross valGureo(sRsMva) lue (RM)(GE(GFE/UFN/UDNPD/IPM/IOM,O,199199)99) UsUesveavlualeuses 2,475,741,981 2,475,741,981 Source: Awang Noor, A. G. 2011 DiDreircetcutsues:e: market vamluaerket val2u3e3,721,896 233,721,896 CChahracrocaoal al annddppooleless 91,365,205 91,365,205 Source: AG Awang Noor FiFsihsh&&prparawwnn 16,266,907 16,266,907 MMududcrcarbabss 13,476,857 13,476,857 ToTuoruisrimsm 112,612,927 112,612,927 IndInirdeircetcutsues:e: Non- 2,238,036,135 2,238,036,135 market Non-1,094,871,841 1,094,871,841 NNurusresreyryrorolele value mvaarlukeet480,729,717 CCarabrobnonseseqquueesstrtaratitoionn 480,729,717 PrPortoetcetciotinonfrforommeerorossioionn 662,434,577 662,434,577 OpOtpiotnionvavlualeu:e: 3,983,950 3,983,950 BiBoidoidvievresristyityvvaaluluee NoNno-nu-suesveavlauleuses 3,983,950 3,983,950 ExEixsitsetnecnecevavaluluee UsUesaenadndNoNno-nu-suesevavlauleuses 2,932,185,680 2,932,185,680 2,932,185,680 2,932,185,680 5,407,927,661 5,407,927,661 NonmarkNeot nvmalaurkee(t9v6a%lu)e>(9>6m%a) r>k>emt vaarkluetev(a4l%ue) (4%) 159

MEGA SCIENCE 2.0 Environment SectorAPPENDIX 7 The large destructions reported in many of theMajor Forces to Drive Forest Transition studies refer to harvesting on forest intended for1. Drivers to Deforestation and Forest Degradation conversion to other land uses. It can be argued thatAccording to Abdul Rahim and Mohd Shahwahid (2009), conceptually selective harvesting of timber in productivethe forested land in Malaysia is slowly giving way to forest reserves, in itself is not to be blamed. It is theagriculture especially oil palm and other forms of land use implementation in various tropical regions that is into support the growth in its population, foreign exchange question. The practice of cutting down larger trees basedearnings and Gross Domestic Product (GDP). This on selected species and leaving behind younger onescreates a conflict between agriculture production, forest which can grow into fresh stock to be harvested later maymanagement and the country’s economic development. appear rational. In theory, such patch should becomeHence, in the context of Malaysian deforestation, the ready for harvest back within thirty to forty years. Thisimplication is that agricultural expansion especially the has been the case in Peninsular Malaysian productiveoil palm, total GDP, population and also export of timber forest reserve, where previous cycles of harvesting haveproducts could be the main factors that influence forest allowed subsequent cycles of harvesting (Wan Razaliloss. 1990).1.1 Commercial Logging 1.2 Agriculture ExpansionCommercial logging is one of the proximate causes of In numerous developing countries, rural poverty, skeweddeforestation (Geist &Lambin, 2001)3. This process land ownership and population growth were majorof creaming or removing selected trees amidst dense influences of deforestation. In Peninsular Malaysia, thevegetation on rather delicate soil causes much more development of export-oriented crops plantation suchdamage than actual number of trees or the volume of as rubber, that started early in the 20th century, andtimber taken out would suggest. It was found that the latter oil palm were directly related to the reduction inlogging operations in Indonesia destroyed about 40% of forest cover. Sabah followed suit with the same patternthe trees left behind (Debjani 2012)4. of agricultural expansion and deforestation in the latter part of the 20th century. In East Kalimantan, the seat of Indonesia’s lucrativetimber trade logging firms are required to leave behind In Sarawak, logging has been identified as the25 select crop trees per hectare. However, in practice primary agent of deforestation, followed by shiftingthere is no logger who would leave the required number cultivation (Repetto 1988). Nevertheless, the shiftingof younger trees, and the notion that the woodland shall agriculture was the primary agent which caused 50%be ready for another valuable timber harvest in forty of deforestation, with logging and smallholder cultivationyears appears to be the best wishful thinking (Debjani playing lesser roles (Brookfield et al. 1990; Collins et al.2012). 1991; Repetto 1988). It can be concluded that heavy logging can cause major forest disturbance. Much damage from logging results from the small clearings in the forest and others. The above picture on commercial logging has failed Thus, it is anticipated that rapid and widespreadto acknowledge that timber harvestings are being agricultural expansion will cause a serious threat toundertaken from two types of forest. The first are from natural ecosystems around the world (Tilman et al.natural forests, mainly located in the low areas whose 2001). Oil palm has become one of the most rapidlyland and soil are suitable for agricultural, settlement grown crops in the world. The global extent of oiland urban lands. The second are from productive forest palm cultivation increased from 3.6 million ha in 1961reserves where selective harvesting is employed. to 13.2 million ha in 2006 (FAO 2007). In 2007, oil 160

MEGA SCIENCE 2.0 Environment Sectorpalm was grown in 43 countries with a total cultivated in Peninsular Malaysia (Johari 1988). The Asianarea accounting for almost one-tenth of the world’s Development Bank (ADB) had financed USD24.5millionpermanent croplands (FAO 2007). The two largest oil to establish about 40,000 hectares of forest plantationspalm producing countries, Indonesia (4.1 million ha) in Peninsular Malaysia for the period from 1985 to 1989and Malaysia (3.6 million ha), are located in Southeast (Phase I). By the end of 1989, only 35,152 hectares hadAsia, together contributing 58.3% of global cultivated been planted (JPSM 1992).areas. Coincidentally, this region also consists 11% ofthe world’s remaining tropical forests (Iremonger et al. Similarly, the World Bank had financed the1997), and harbours numerous endemic or rare species, establishment of about 150,000 hectares of forestmany of which are restricted to forest habitats (Sodhi et plantations in Sabah by the year 2000 and by the endal. 2004; Koh & Wilcove 2007). Therefore, the potential of 1988 about 40,000 were planted. During Phase IIimpacts of further oil palm expansion on tropical forests (1989-1993) of the program, another 42,000 hectaresand biodiversity in the region are a major conservation were planned to be planted with Acacia mangium atconcern (Koh & Wilcove 2007). an estimated cost of USD69 million and the Malaysian Government financed USD39.5 million and the remaining Although, it has generally been acknowledged that oil USD29.5 million came from ADB loan. The CFPP camepalm plantations in Malaysia and Indonesia have been to a complete moratorium in February 1992 due tocreated from existing agricultural lands (e.g. rubber) and heart rot problem in Acacia mangium already planted.forests, the relative contributions of these two land uses By then about 47,066 hectares had been establishedto oil palm expansion have to be investigated. Over the with a cost of about USD29. 15million (JPSM 1992).period of 1990 to 2005, the Malaysian oil palm grew Subsequently, the Government decided that the forestby a total of 1,874,000 ha (FAO 2007). In a research plantation program would continue but more species areconducted,it was found that during the period 1990- to be allowed, including the indigenous forest species.2005, between 55% and 59% of oil palm expansion inMalaysia was due to forest conversion, and between In general, forest plantations did not grow as rapidly41% and 45% of oil palm expansion was likely due as anticipated. Private sector investment in forestto the conversion from pre-existing agricultural lands plantation was hampered by the long gestation period,(including rubber plantations) (Koh & Wilcove 2008). the high initial cost of production, high accumulated interest charges and scarcity of large contiguous However, even though Malaysia reported no loss of land for forest plantation. The Malaysian governmentprimary forests during that period (FAO 2006), a large intervened in the interest of the wood-based industryarea of secondary or plantation forests were likely by establishing a Special Purpose Vehicle (SPV)to have been converted to oil palm plantations. This company to provide financial loans to interested privatefinding has strongly proven that oil palm plantation forest plantation venture named Forest Plantationestablishments have led to the conversion of either the Development Sdn. Bhd. In March 2005, the Governmentprimary forests or secondary forests. Throughout the pursued an aggressive programme to develop forestdeveloping world, the cultivated land area is expected to plantations in Malaysia. Under this National Timberincrease over 47% by 2050, with about 66% of the new Industry Policy – NATIP, the Government planned toland coming from deforestation and wetland conversion develop 375,000 ha of forest plantation at an annual(Fischer & Heilig 1997). planting rate of 25,000 ha per year for the next 152 Key Points Leading to Afforestation and years. Once successfully implemented, every 25,000Reforestation – Forest Plantation Programme & ha of land planted is expected to produce 5 million m³Special Purpose Vehicle (SPV) of timber every year based on the wood production ofFrom 1981 to 1995, the government embarked on a major 200m³ per hectare per year (FRIM 2005). A Specialplantation programme known as the Compensatory Purpose Vehicle (SPV) was established to manage theForest Plantation Programme (CFPP) which envisaged disbursement of soft loans (total RM1.045 billion), toto establish about 188,000 hectares of forest plantations 161

MEGA SCIENCE 2.0 Environment Sectorcarry out auditing process of the plantation as well as to In Peninsular Malaysia, lands eligible under SPVprovide technical support and training for the programme. must be State lands or alienated lands and not onTo attract and encourage the private sector (local and Permanent Reserved Forests (PRFs). In Sarawak,foreign companies) to participate in the forest plantation eligibility is only on areas with License for Plantedprogramme, the Government is providing them with Forest (LPF) while in Sabah, only areas approvedfiscal incentives such as an investment tax allowance. as zone for Industrial Tree Plantation (ITP) under theBesides tax exemptions, the Government also extends Sustainable Forest Management License Agreementsoft loans to eligible companies (MTIB 2012). At the (SFMLA) is eligible. To date, a total of 62,000same time, various States in Peninsular Malaysia,Sabah hectares of plantation forest has been establishedand Sarawak offer additional incentives. Eight out of the 101,000 hectares approved under thisspecies are given preference in this program, namely: SPV. Heveabrasiliences, Acacia hybrid, Khayaivorensis/senegalensis, Tectonagrandis, Azadirachtaexcelas, Nonetheless, recently, the following forest plantationsNoelamarckiacadamba, Paraserianthesfalcataria, and had been established, including those established underOctomelessumatrana. the CFPP and the MTIB’s SPV – see Thrust 2 Table (Existing forest plantations by State): THRUST 2: Supply of Raw MaterialsExisting Forest Plantation by State:No STATE ACREAGE (ha) Species1 Johor 17,407 Acacia mangium and Getah2 Kedah 3.100 Acacia mangium,Teak, Getah and Sentang3 Kelantan 4,400 Acacia mangium, Jati Getah, Sentang and etc4 Melaka 113 Getah, Merawan sp, Karas dan Sentang5 Negeri Sembilan 364 Acacia mangium, Getah and Karas6 Pahang 19,01/ Acacia mangium, Getah Sentang and etc7 Perak 1,1/5 Acacia mangium, Sentang and etcn8 Perlis 6/1 Teak dan Karas9 Selangor 11,381 Pine, Getah, Sentang, Mahogany and etc10 Terengganu 3,915 Acacia mangium, Getah, Kapur and etc11 Sabah 107,441.39 Acacia mangium, A. Crassicarpa, A. Aulococarpa, A. Hybrid, Falcataria moluccanaTOTAL ACRAGE 188,505.65 Eucalyptus grandis, Eucalyptus deglupta, Eucalyptus spp. and 581,825.04 Gmelina arboreaSource: JPSM, JPS, JHS and NRE 162

MEGA SCIENCE 2.0 Environment Sector163

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