ALOR STAR: The economic cost of suspending logging activities in the Ulu Muda Forest Reserve (UMFR) currently stands at RM435.52 million, says the Kedah Loggers’ Association (PPNK).
PPNK chairman Wan Muhammad Amin Mokhtar said this loss of revenue to Kedah's economy, being shouldered by loggers, resulted from the suspension of the Selective Management System logging on 20,000ha of the UMFR, out of the 106,418ha forest reserve.
The remaining hectarage is not a production forest and, thus, is fully protected.
He said this loss had not only impacted the logging industry but also other industries and the general population of the state.
"The fall of one of the state’s main industries has inevitably affected the overall circulation of money within the state’s economy. This has consequently led to a drastic decrease of Kedahans’ purchasing power.
"This in hand, reflecting on the state’s current economic state that is taking a huge hit due to the loss of revenue from the logging industry, PPNK believes that the interest of the state economy supersedes the necessity of logging in the UMFR.
"In cognisance of that, PPNK is prepared to take the initiative of surrendering its logging concessions, but humbly requests for the Kedah state government to first reimburse the losses that have been shouldered by the loggers, due to the suspension of logging at the said area," he said today.
Last September, Land, Water and Natural Resources Minister Dr Xavier Jayakumar said the Kedah government would revoke logging permits in the massive UMFR and suspend new ones with immediate effect.
He said he had met Kedah Menteri Besar Datuk Seri Mukhriz Mahathir and was given the good news.
Mukhriz had reportedly said that his government was prepared to gazette the UMFR as a State Park, but stressed that a number of issues needed to be studied and understood first.
Although the forest reserve is not gazetted as a state park yet, all activities including logging which could threaten the area’s ecosystem have been stopped.
There has been calls from various quarters to compensate Kedah for conserving the UMFR.
The reinbursement, Wan Muhammad Amin said, would allow loggers -- as Kedah's capitalists -- to re-channel their capital to other industries within the state, which, in time, would lead to the restoration of Kedahans’ general purchasing power and subsequently, the state’s economy.
He said that while the nature of the business of PPNK members might have led to a public misconception of what it really does, the real role played by loggers in Kedah was as the state's economic actors, whose interests were always beholden to the survival and prosperity of the state’s economy.
"PPNK members maintain that the sustainability of resources in the UMFR, including water catchment, has always been its primary concern, and is always prepared to cooperate with the state government to achieve the best outcome for all its stakeholders, especially Kedahans," he noted.
All logging in the UMFR is carried out under the government's Selective Management System, which only allows for the felling of trees of specific species, sizes, and in specific areas.
Every logging compartment under the Selective Management System is tightly regulated and verified by external auditors of bodies whose members include buyers from foreign countries.
Should a logging compartment fail an audit, the timber products will not be able to access countries such as those in Europe, which have their own sustainability requirements for timber products sold to their countries.
Wan Muhammad Amin said it made commercial sense for PPNK members to ensure the sustainability of their timbers, because in so doing, they would be able to reap the benefits of being able to sell to countries with stronger currencies and purchasing power.
He said that the primary aim of the Selective Management System was to accelerate forest regrowth by the cutting of oversized trees that prevent sunlight from reaching smaller trees. This aim sets it apart from other logging methods, especially the ‘forest clearing’ method practiced elsewhere.
Wan Muhammad Amin said with regard to non-governmental organisations (NGOs)’ request for the Kedah state government to gazette the UMFR in its entirety as a state park, PPNK called for a careful examination on the impact of their proposal, with reference to the state’s current economic situation.
"The loss of RM435,520,000 is a heavy blow to Kedah’s economy, especially when one considers the size of the state’s economy relative to other economies within Peninsular Malaysia.
"For now, there is still time for the state to amend the situation, but the window of time is shutting down rapidly as this situation drags on.
"For the best interest of all, it is time for the NGOs to complement their sentiments with a deeper understanding of the economic outcome of their proposal, by justifying their proposal with legitimate facts and figures," he stressed.
Covering a total land area of 106,418 hectares, the UMFR is the largest water catchment area in the northern region, filling the three major dams in Kedah - Ahning Dam, Muda Dam and Pedu Dam. Raw water from the Ulu Muda also flows through Sungai Muda to Penang.
These forests are critical in meeting the water needs of Perlis, Kedah and Penang, and serving an estimated population of 4.09 million people in the three states.
The raw water originating from Ulu Muda is also essential for double cropping in the rice fields of Kedah, Perlis and Penang, which includes the nation’s rice bowl. The forests also play a major role as a ‘carbon sink’ critical for addressing climate change.