1. Background

Asrama Raya Sdn Bhd (ARSB) is a major timber producer and supplier in Terengganu. In line with the Malaysian Criteria and Indicators for Forest Management Certification [MC&I (Natural Forest)] and the Forest Stewardship Council (FSC) National Forest Stewardship Standard of Malaysia, ARSB practices sustainable forest management (SFM) and legal timber harvesting. The company adheres to both national regulations and international forest certification standards.

In 2015, ARSB was granted a 10,000 ha forest concession within the Petuang Forest Reserve (Hutan Simpan Petuang) under a concession agreement signed with the Terengganu State Government. This agreement is valid for 13 years and is subject to renewal. The forest license was issued by the Terengganu State Forestry Department (TSFD) [Ref: (80) dlm. PHTN 62 (Sulit)/SK.1/Bhg.9c].

Based on the concession agreement signed on 11 May 2015, the HS Petuang Concession includes a partially steep area of 1,087.74 ha, located at elevations between 1,000 and 1,500 meters above sea level (a.s.l.). This area has been designated as a fully protected area, where logging and any form of human activity are strictly prohibited.

Subsequently, during the Forest Harvesting Board (LMHH) meeting held on 8 December 2024, the Government of Terengganu approved a replacement logging area to replace for the exclusion of this protected area. According to the formal letter issued by the Terengganu State Forestry Department (TSFD) [Ref: PHNT. (SULIT)62/SK.1/BHG.25(65)], the approved replacement area includes part of Compartments 122 and 123 in the HS Petuang, and Compartments 108, 109, 112, 113, 114, 115, 123, 124, 125, and 126 in the HS Tembat.

The Forest Management Plan (FMP) is developed by the ARSB Forest Management Unit (FMU) to outline planned forest activities, harvesting procedures, protection of environmental and social values, research and development, and budget planning. As part of the commitment to sustainability and continuous improvement, the FMP is reviewed every five years (mid-term review) and fully revised every ten years.

ARSB practices Reduced Impact Logging (RIL) and Selective Management System (SMS). Forest workers are trained and instructed not to engage in illegal logging, hunting, or NTFP collection. Signage has been placed to prohibit hunting, and ARSB has implemented internal controls to safeguard the forest ecosystem.

2. Location

ARSB sawmill is located prominently along the Jerangau-Ajil road about 1 hours drive from the city of Kuala Terengganu. The East Coast Expressway (LPT) also facilitates travel from Kuala Lumpur and the trunk road also facilitates travel from Gambang to Kuala Berang. ARSB HS Petuang concension area is a primary forest located in Hulu Terengganu, Terengganu, Malaysia. 

The 10,000 ha of ARSB HS Petuang concession is located at Hulu Terengganu, Terengganu, Malaysia.