WWF-Malaysia refers to the announcement by the Kedah government that it is revoking and halting the issuance of logging permits in the Ulu Muda Forest Reserve.
We welcome the bold move, which is a significant step towards ensuring the protection of the larger Ulu Muda Forest
Complex, a crucial water catchment forest for the northern states.
The move signifies the state government’s commitment to conservation, especially since such a decision could pose financial implications to the state.
We are also encouraged by Water, Land and Natural Resources Minister Dr Xavier Jayakumar’s statement that the Federal Government is studying how to compensate Kedah for conserving the forest reserve.
The Ulu Muda Forest Reserve. is the biggest forest reserve in the larger Ulu Muda Forest Complex, which consists of six other forest reserves.
Spanning 106,419ha, the Ulu Muda Forest Reserve represents 65 per cent of the entire forest complex. Its importance as a water catchment forest is undeniable as it supplies 96 per cent of Kedah’s water, 80 per cent of Penang’s water and 40 per cent of Perlis’s water supply — fuelling the nation’s biggest granary area, the region’s economic growth, and its people’s livelihood and wellbeing.
Apart from that, the forest complex is also a biodiversity hotspot. It is home to at least 112 species of mammals, including many large ones such as the Asian elephant, the Malayan tapir, the Malayan sun bear, the sambar deer and the clouded leopard.
The Ulu Muda Forest Reserve, in particular, is one of two known places in Peninsular Malaysia where spotted leopards are found.
Furthermore, the rare plain-pouched hornbill is known to roost in this forest complex, one of two sites in Malaysia where these birds are found in large numbers.
It is heartening to note that environmental conservation is gaining traction in Kedah.
The new government stated that it recognises the importance of the Ulu Muda Forest Complex as a water catchment area and its action to revoke and suspend logging licences in the Ulu Muda Forest Reserve reiterates that it is serious about conserving the area.
WWF-Malaysia hopes that this move can be extended to the whole of Ulu Muda Forest Complex and, subsequently, gazette it as a water catchment forest and a state park.
When officiating the 14th State Legislative Assembly last month, Sultan of Kedah Sultan Tunku Sallehuddin Ibni Almarhum Sultan Badlishah stressed the need to reduce financial dependence on logging and instead explore other alternatives such as ecotourism and bioprospecting.
The sultan called on the Federal Government to reconsider the criteria used to allocate the federal budget to the state, as allocating budget based on per capita, for example, is no longer suitable.
WWF-Malaysia strongly supports the call by the sultan to review the criteria used for federal budget grants to states and to introduce fiscal reforms.
It is a matter that needs immediate attention.
Reforms are needed to allow ecological fiscal transfers to states — a means of compensating the states for the costs of providing ecosystem services via forest conservation.
Ecological fiscal transfers are being adopted in other countries such as Brazil and India.
In India, the central government includes natural forest cover as a criteria when allocating tax revenue distribution to states in the annual budget.
It is about time our government, too, provided states such incentives to protect and restore our natural capital.
As a first step, policy, legal and operational barriers that restrict or prevent states from getting due compensation and incentives from the Federal Government for conservation purposes need to be identified and removed.
An enabling policy, and legal environment and fair financial mechanisms that can generate revenue for states based on conservation efforts have to be established. These are not limited to reforming tax regimes such as allowing states to obtain revenue from activities that hinge on conservation, for example, ecotourism.
Mechanisms to allow private sector funding to be channelled to natural forest conservation efforts also need to be explored.
We urge all parties that benefit from the Ulu Muda Forest Complex to recognise the vital role these forests play, not just in contributing to water security and economic growth in the northern region, but also to food security of the nation.
Parties that benefit not only need to acknowledge the costs, including opportunity costs, associated with the protection of the catchment forest that Kedah, but also explore ways to contribute towards the conservation efforts of the state.
The private sector, too, needs to start being proactive in the conservation of these forest reserves.
Dr Henry Chan, Conservation director, WWF-Malaysia