Forest Plantation Forum: Discussion on Building Sabah’s Industrial Tree Plantation Sector
2026-05-07
The recent Forest Plantation Forum held on 5 May 2026 at the Rainforest Discovery Centre, Sandakan brought together industry participants and stakeholders to discuss the long-term development of Sabah’s Industrial Tree Plantation (ITP) sector. The session focused on practical challenges and operational realities associated with establishing and sustaining plantation forestry at scale.
Representing the Timber Association of Sabah (TAS), Forest Solutions Malaysia Managing Director Mr. Glen Mac Nair shared several key considerations affecting the sector’s growth and long-term viability.
Among the topics discussed was the importance of reliable planting material and continued investment in genetic research. The session highlighted the role of collaboration within the industry, including through BFC Research & Development Sdn. Bhd., in improving plantation productivity and resilience under different site conditions.
Discussions also focused on the long-term nature of plantation management. Decisions made during the establishment phase may only become visible many years later, reinforcing the importance of operational discipline, planning, and technical oversight throughout the plantation cycle.
The forum further addressed the gap between existing policy frameworks and plantation realities. Particular attention was given to tax structures and loss carry-forward periods, which may not fully reflect the biological growth cycles and long investment horizons associated with industrial tree plantations.
Participants also discussed market demand and investment considerations within the plantation sector. While demand for timber products remains present, sustainable long-term investment continues to depend on pricing structures capable of supporting operational and infrastructure costs over extended plantation cycles.
Human capital development formed another important area of discussion. The sector’s continued expansion requires more skilled foresters, operators, supervisors, and technical personnel capable of supporting plantation development and operations at scale.
The session also highlighted the capital-intensive nature of industrial tree plantation development. Many plantation operators continue to invest in roads, camps, nurseries, logistics systems, and other operational infrastructure while managing long investment horizons before plantation returns are realised.
Certification frameworks and regional realities were also discussed. Participants noted that international certification cut-off dates may not always align with the development timelines of gazetted FMU areas only now entering plantation development. Strengthening recognition for regional certification systems remains an important area moving forward.
In addition, discussions reinforced the importance of scale within plantation development. Small fragmented operations often face challenges in supporting the infrastructure, operational efficiency, and long-term investment required for industrial tree plantations.
The forum provided a practical platform for industry participants to exchange perspectives on the realities, constraints, and long-term requirements of developing an effective Industrial Tree Plantation sector in Sabah.
Forest Solutions Malaysia extends its appreciation to the Sabah Forestry Department, Timber Association of Sabah (TAS), and Sabah Timber Industries Association (STIA) for organising the forum and facilitating these important industry discussions.
