Sabah Forestry Dept-EU partnership reaches next milestone

KOTA KINABALU (Nov 8): The partnership between the Sabah Forestry Department and the European Union (EU) has reached its next milestone with a crucial Stakeholder Consultation Workshop held from on November 6-7 in Kota Kinabalu.

This collaboration, which was successfully kicked-off on June 18, 2024, aims to update and enhance the Sabah Timber Legality Assurance System (TLAS) to align with the EU Deforestation Regulation (EUDR) and the EU Corporate Sustainability Due Diligence Directive (EU CS3D), reinforcing Sabah’s commitment to sustainable forestry and legal compliance in the timber trade.

The workshop, jointly organized by the Sabah Forestry Department and the Delegation of the European Union was attended by relevant stakeholders representing government agencies, members of the Implementing Agencies Coordination Committee (IACC), Timber Association of Sabah (TAS), and Sabah Timber Industries Association (STIA).

With 63% of Sabah’s land area still under forest cover, the state remains committed to its conservation goals, aiming to designate 30% or 2.2 million hectares as Totally Protected Areas (TPAs) by 2025.

These initiatives highlight Sabah’s ongoing efforts to balance economic growth with environmental preservation.

The workshop was officially inaugurated by Saroj Srisai from the Delegation of the European Union to Thailand and Datuk Frederick Kugan, Chief Conservator of Forests of the Sabah Forestry Department.

The speakers highlighted the collaborative effort between the EU and Sabah, aiming to strengthen sustainability in timber production and combat global deforestation.

“Sabah is committed to enhancing the credibility of our timber products on the global stage, but we must also be realistic and pragmatic in our approach, given that we are still a developing country,” stated Kugan.

“Aligning Sabah TLAS with EUDR requirements is a testament to our dedication to promoting responsible forest management practices and ensuring compliance with international standards.”

Experts from the EU-Malaysia Cooperation Facility presented their mapping of the Sabah TLAS against the EUDR and EU CS3D requirements and highlighted topics such as forest conversion, waste management, worker safety and wages, Free, Prior, and Informed Consent (FPIC), geolocation requirements, and traceability.

These discussions are vital for enhancing the Sabah TLAS to ensure compliance with EUDR and EU CS3D, enabling Sabah’s timber to access and compete in the international market.

The partnership to update the Sabah TLAS will enable Sabah timber to be produced in line with EU market requirements. The EU, an attractive single market of 27 countries, is the largest trade bloc in the world and accounts for around 15% of the world’s trade in goods. It is the fourth largest destination for Malaysian exports. The EU is also the second largest source of foreign direct investment for Malaysia, with €25.2 billion in 2022.

Sabah TLAS, established in 2009 as a due diligence system, was initially developed to meet EU requirements under the Forest Law Enforcement, Governance and Trade (FLEGT) program. The current Sabah TLAS remains applicable under the European Union Timber Regulation (EUTR) and continues to support Sabah’s Sustainable Forest Management (SFM) strategy, adopted in 1997.

By updating Sabah TLAS to meet EUDR and EU CS3D standards, Sabah will pioneer and facilitate timber exports that meet emerging international market requirements.

The current phase of collaboration including the update of the Sabah TLAS to meet the EUDR and EU CS3D and training for industry is expected to be completed by May 2025.

The continuous support and insights provided by EU stakeholders will further strengthen Sabah’s capacity to meet evolving global standards in forest legality and sustainability.

By enhancing Sabah’s TLAS, this partnership underscores the state’s proactive role in addressing climate change and advancing a sustainable and legally compliant timber industry.

The outcomes of this workshop are expected to serve as a blueprint for future enhancements to Sabah TLAS, enabling Sabah timber products to be globally competitive and future ready.