About Sabah and the Indigenous Peoples

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        Sabah was home to a highly diverse population, with at least 38 distinguished ethnic groups previously estimated in the region. Despite the oversimplified categorization of ethnicity with three main groups (including bumiputra or indigenous peoples, Chinese, and others), the indigenous segmentations of Sabah still uphold certain roles in the state’s culture and demographics (Andaya, 1982). Although the non-Muslim group makes up 17.97% of Sabah’s population, the Kadazan-Dusun people have bent over backward in accompanying political control, along with the issues of under-development and political marginalization (Yearbook of Statistics Sabah, 2004). Three major political parties representing the interests of the Kadazandusun community are Parti Bersatu Sabah (PBS), United Pasok, and Momogun Kadazandusun Murut Organisation (UPKO) (Salman, 2011). Kadazandusun community's political representation has been primarily channeled through these regional parties within the broad Malaysian political landscape.

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        On September 13, 2007, Malaysia cast a vote in support of General Assembly Resolution 61/295, which established the United Nations Declaration on the Rights of Indigenous Peoples, along with other 143 nations (SUHAKAM, 2013). With an emphasis on protecting the rights of indigenous peoples in Sabah, the Malaysian National Human Rights Commission (Suhakam) conducted a nationwide study into the land rights of indigenous peoples (Ibid). Yet efforts have been made in various programs including infrastructure enhancement, village reconstructions, and other land protection, there have still been conflicts on land use, which highlights the significance of inclusive and culturally sensitive methods to development. The native rights of Indigenous peoples in Malaysia, such as the 'Orang Asli', encompass activities like fishing, hunting, and foraging, reflecting the close relationship between indigenous communities and their natural environment (Hussain, 2022). Despite inheriting these laws and regulations after gaining their independence, only a little has changed afterward as opposed to their promises. People are still recommended to relocate to centrally planned settlements, and the only way to acknowledge land rights up until now has been to provide individual land titles for permanent farms and housing plots. Suhakam suggested changes to enable the Orang Asli, Dayak (in Sarawak), and Kadazan-Dusun (in Sabah), to collectively title their lands and territories (Ibid). 

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        In summary, the Malaysian government's attempts to ensure the rights of the indigenous Kadazan people are a component of larger programs meant to advance social justice, environmental preservation, and cultural preservation. Sustainable development that benefits Malaysia's varied population may be fostered by acknowledging and upholding the rights of indigenous groups.

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Typical timber company model in Sabah and their relationship with the government

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        Founded in 1974, Sabah Softwood Bernard (SSB) has been the leading company for the economic growth of the Sahab region as the pioneer in commercial forest plantations (Sabah Softwood Bernard, n.d.). The total forest land held by this company takes up a significant proportion of Sabah region land ownership for the forestry industry with 20,000 ha for tree plantations, mainly focused on acacia and eucalyptus (Sabah Softwood Bernard, n.d.). This company has a close bond with Sabah authority.  Firstly, working as a private company, however,  70% of the investment arm and the holding came from a state company Yayasan Sabah Group (Sabah Softwood Bernard, n.d.). Owning a majority in the company structure gives Sabah governments the right to influence significantly in orienting company activities to be aligned with the Sabah forestry industry goal and Malaysian development plan in general. Specifically, this company's forest management and plantation decisions have been adapted to suit the Malaysian forest management plan when it puts timber activities focus on acacia and eucalyptus to serve the production of wood products and the region's set export targets. Besides, with majority control belonging to the government, SSB also receives several endows benefiting its business activity, including land use policies with ownership lasting up to 60 years, tax incentives, and regulatory support (Malaysia Timber Council, 2023). 

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        Moreover, major holdings kept by authority also mean that profits will be contributed to the region's budget through a holding company. In 2023, the forestry industry in SSB contributed to its mother company about  RM13 million (Yayasan Sabah Group, 2024). Furthermore, with its prominent contribution to the economy, it has received public support and recognition from the state authorities, namely the prime minister on the media (Daily Express, 2023). In recent years, this region’s total profit from the timber industry has shrunk due to natural forest degradation due to past overexploitation. Therefore, the Malaysian government and the Sabah authority have considered the alternative for exploiting the 10-Year Tree Plantations Management Plan (2016-2025) (Sabah Forestry Department, 2017). This plan will concentrate on the enlargement of forest plantations with fast-growing tree species on a shorter rotation period for higher operating efficiencies at optimum cost including Eucalyptus and Acacia. Considering this plan to leverage its strengths in exporting timber products, this company's role in the Sabah economy and the bond with the region’s government may extend. Surprisingly, the scheme of specializing in industrial crops with short life cycles and continuous large-scale cultivation cycles to maximize the benefits of the land, which claims to be sustainable, bears a similar pattern to the old plantation model in the Colonial era.

Economic growth vs. Land rights for Indigenous people 

 

        The story of private and state-owned enterprises trampling over the rights of Sahab’s indigenous communities was not entirely new - their experiences of getting deprived of basic rights dated back to the colonial period. Before the independence of Malaysia in 1957, Sahab was the first in the country to receive first-hand colonial policies of the British as a large swath of primary forest was subjected to logging and mining industry, the land of which was later converted into plantations (Jomo, 2015). Land rights in the region were put under the control of private enterprises set up by the British, known as the British Borneo Timber Company (BBT) (Barbara Watson Andaya & Andaya, 2024/2017). Exporting timbers soon became the region's most valuable commodity, accounting for about 95% of Sabah’s economy (Hutterer, 1977). Such practices set the state of the region's economic model as export-oriented with timber as the main economic impetus, followed by cash crops (Coffee, rubber, palm oil…) (Drabble, 2024/2000). The status quo witnessed subtle changes in post-independent, as the logging industry soon accelerated in scale and efficiency with modern technologies and rudimentary infrastructure. This contributed to an average total of 74,000 ha of forest loss each year from 1966 to 1991 -  that is about 56,060 football pitches of trees being cut down yearly (Jomo Kwame Sundaram, T, & J, 2004).  Deforestation also occurred in the plantations and agribusiness industry as it expanded on a great scale, opening new settlements and roads, thereby significantly pushing for more land grabs and deforestation. According to the Global Forest Watch (GFW), the extent of 349,244 ha between 2017 and 2021, with 2.3 million acres of land earmarked for clearance within 2024 (Aingaran, 2024) (RIMBAWATCH, 2024).

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        The motives behind Malaysia’s policies toward the Indigenous community and its economic model were not entirely new either - another expression of developing nations' decision to sacrifice minority rights and environmental biodiversity over economic growth. To finance Malaysia's ultimate goals of modernization and prosperity, the export-oriented economic model based on logging, and cash crops serves as a constant stream of foreign currency to the government budget, as most companies operating such sectors are state-owned enterprises or collaborate with the local government. Within 2022, the two amounted to 22% of Malaysia’s agricultural export values, with cash crops as the main impetus for exporting commodities (Statista, 2024). The available foreign reserves facilitate the imports of key products, namely, wheat, rice, dairy, and citrus fruits, which equate to 69.7% of the total Malaysia GDP (International Trade Commission, 2024) (The World Bank, 2022). The importance of the cash crop economic model to Malaysia is so great that its international standing was damaged in a dispute with the European Union over transparency in forestry and agricultural management. During the consultation sessions of the EU FLEGT-VPA between Malaysia and the EU, the Malaysian government steadfastly rejected requests for public information on forestry and logging management (Yong, 2014). The latest dispute between the EU and Malaysia on the World Trade Organization (WTO)  centered around Jarkata's uncooperative stance in providing acute data on the land where oil palm plantations were established (More & Blenkinsop, 2024).

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Impacts of  ‘monoculture’

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        Eucalyptus is a leafy tree that proliferates and produces biomass efficiently (Mekonnen et al., 2007). This highly productive ecosystem has created numerous controversies, especially the plant's water use efficiency, which may have placed the local and regional water supplies at risk (Hubbard et al., 2010). Moreover, the leaves of Eucalyptus are thick, tough, and highly resilient but with low specific leaf area and low nitrogen and phosphorus content (Whitehead & Beadle, 2004) and the transpiration rate of Eucalyptus tends to be higher compared to other species with slower growth rates (Hubbard et al., 2010). Eucalyptus demands high and intense nutrients from the soil; therefore, poor soil management could lead to soil degradation if the nutrients are not replenished (Spangenberg et al., 1996). Other than that, the abundance of herb and bird species in Eucalyptus plantations is lower compared to mixed and deciduous temperate forests and the plants in Eucalyptus mainly belong to scrublands or mesophilic to wet meadows and pastures (Goded et al., 2019). This clarifies the disappearance of forest naturalness in Eucalyptus that inhibits the diversity of forest species compared to native forests (Proença et al., 2010). 

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        Regarding people, at least the indigenous, replacing natural forests with plantations has fundamentally impacted daily life across generations. First, the forest which provided multiple wild vegetables from leafy greens has now witnessed a sharp decline, causing a downward trend for the income from selling those products. Further, many wild fruit trees have been lost permanently, and timber trees are scarce, primarily used for construction. As a result, people have no choice but to purchase wood for construction or renovation work. Last, most of the rivers have been polluted by chemicals used by the plantations, causing the sharp depletion of river resources. When the forest covering is cut down, villagers also face wildlife trouble frequently coming from tigers, sun bears, and elephants. People are fighting to protect their forests and way of life and are willing to erect blockades to stop loggers if the discussions with the state authority to stop forest plantations fail. On the other hand, some indigenous communities are finding ways to adapt and preserve their life by exploring alternative income sources such as ecotourism and the commercialization of traditional practices.

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        However, Eucalyptus is an excellent tree for producing quality short fiber, vegetable coal, and non-forest products (FAO, 2002). Eucalyptus plantation forestry has played a significant role in improving the livelihoods of rural communities, poverty reduction, and reducing the pressure from remnant native forests (Tadele et al., 2014). Similarly, the fuel wood used for daily consumption has a positive effect on women's empowerment who have to collect them far away from their villages. In short, the standouts of Eucalyptus are due to its profitable industrial applications, particularly in producing pulp and renewable energy, its lower cost in manufacturing printing, writing, and tissue paper, and its usage for multiple social activities from hunting and livestock on its plantations to leisure. Likewise, the Malaysian government could indirectly attract, and encourage the private sector to participate in the forest plantation program by providing them with fiscal incentives such as soft loans payable after 15 years and investment tax allowance and increase external investment for the domestic economy.

 

Author: 

• Tran Nguyen Ngoc Minh, International Communications intake 49,  DAV.

• Nguyen Thanh Binh, International Politics and Diplomatic Studies intake 49, DAV.

• Bui Thi Hai Nguyet, Marketing Communications intake 65, National Economics University.

• Le Thi Ngoc Diep, International Economics intake 50, DAV.

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