A Report on the Malaysian Timber Certification Scheme - Rengah ...

years’ (IDEAL 1999:33). At the national-level consultation of the MTCC in 1999, five social NGOs
expressed in a position statement their concern that native customary rights would be threatened:
The establishment of the FMU requires the constitution of the Permanent Forest Estate
(PFE), the consequence of which, by virtue of the Sarawak Forest Ordinance explicitly extinguishes
the native customary rights and privileges of the local indigenous communities
over their land and resources thereon (Yong 2001:45).
In other words, the MTCC scheme would aggravate the injustice to indigenous communities and
would challenge the legal rights of indigenous citizens as enshrined by the national constitution.
The NGO group has urged the MTCC to bring this concern to the attention of the Sarawak State
government. (Yong 2002:126). The MTCC has, following the consultations in 1999, sent a letter
dated 14 January 2000 to the Sarawak State Ministry of Resource Planning and Management on the
matter 5 . However, the issue has not been resolved.
Economic values
Under Criterion 6: ‘Economic, Social and Cultural Aspects’, the economic aspects take account of
‘the ratio of domestic log production to processing capacity of wood industries’, as well as the ‘existence
and implementation of mechanisms for the effective distribution of incentives, and the fair and
equitable sharing of costs and benefits among the parties involved’ (MC&I 6.1 and 6.2, version 2001).
Unfortunately, the term ‘parties involved’ is narrowly defined and comprises only the State Government
and the Federal Government. 6 Other parties affected in a direct or indirect way – either through
shared benefit or shared cost (such as environmental pollution or degradation) – are not considered.
Further, the performance standards listed under Indicators 6.1 and 6.2 apply to Peninsular Malaysia
only. There are no standards for Sabah and Sarawak.
Other economic aspects detailed in the C&I of the International Tropical Timber Organization (ITTO)
– such as ‘Quantity (volume) and value of wood and non-wood forest products for subsistence use’
and ‘Efficiency of utilisation in terms of the percentage of felled volume processed’ – are omitted in
the 2001 version of the MC&I, although they were part of the 1999 version
Socio-economic aspects
As regards the socio-economic aspects, the standards include criteria for the health and safety of
forest workers and for the creation of employment opportunities. A certified FMU must identify sites
for research, education, recreation, and for the direct use and benefit of local communities. The
management must keep a record of visitors to the forest for recreational purposes. Tenure and user
rights in the FMU must be documented and recognised (MC&I 6.3 – 6.7). 7
However, as pointed out by the MTCC/FSC assessors, minimum performance levels have not been
defined. For instance, under the employment criterion the standards require merely the compilation
of employment data – such as the number of people employed and the average wage rate – without
setting any performance levels to be attained. There is no criterion for the minimum level of employment
of personnel from the local community or for minimum wages in accordance with national
regulations – except for on Sabah, where a minimum employment of Malaysian personnel is specified
(5%).
On the rights of indigenous peoples and local communities, forest dwellers and other forest-dependent
communities, Criterion 6.8 states:
Legal and customary rights of local communities in the FMU must be identified and recognised
in forest planning and management practices and related processes. In making this
assessment the interested parties should be consulted (MC&I 6.8, version 2001).