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Financing forest conservation and environmental
protection initiatives
The Malaysian government intends to expand the Forest European Wilderness Society
Conservation Certificate (FCC) instrument to encourage broader

participation and contributions toward forest conservation and
protection efforts.
Deputy Prime Minister, Fadillah Yusof, said the FCC is a
non-market-based green financing instrument introduced by
the government to address climate change and safeguard
the nation’s strategic natural assets.
Launched in May last year, the FCC, developed by
the Malaysian Forest Fund (MFF) since 2022, serves as a providing sector specific interpretations and reference tables
mechanism to finance sustainable forest conservation and for two key forestry activities in hill forests in Sarawak, namely

environmental protection initiatives. timber harvesting and industrial forest plantation development.

Guidance document for Sarawak forestry projects Mersk distribution centre
A guidance document on ‘Interpreting Environmental Impact The logistics group AP Moller–Maersk A/S has launched its
Assessment (EIA) Terms and Conditions for Forestry Sector largest contract logistics facility in the Asia Pacific region, the
Projects in Sarawak’ was officially launched to support the Maersk Mega Distribution Centre in Shah Alam, Malaysia.
State’s sustainable development agenda. Maersk said the 180,000 sqm facility expands its warehousing

Premier Abang Johari Tun Openg launched the document in Malaysia by more than 30 percent and is designed to handle
during the recent state-level National Environment Day 2025 a range of commodities including fast-moving consumer goods.
celebration. The facility is about 340km from the Port of Tanjung Pelepas
Jointly developed by the Natural Resources and Environment in Johor, which serves as Maersk’s largest transshipment
Board (NREB) and the Sarawak Timber Association’s hub in Asia.
Environmental Compliance Audit (ECA) Working Group with “Malaysia’s strategic location between the Indian Ocean
technical input from the Forest Department Sarawak (FDS), the and the South China Sea means it is at the crossroads of
guidance document serves as an important reference to help major maritime trade routes, putting the country in an ideal
the forestry sector better interpret and compile EIA reports. position to act as a hub for shipping and logistics,” said

By clarifying these terms and conditions, the document Maersk Contract Logistics head of Malaysia P’ng Tean Hau.
directly supports the implementation of the ECA, a key regulatory
mechanism under the Natural Resources and Environment Aiming to achieve EUDR ‘low risk’ country ranking
(Audit) Rules, 2008, said NREB and STA in a joint statement. A special committee on Implementation of the European Union
The document also helps bridge the gap between regulatory Deforestation Regulation (EUDR) has studied strategies and
requirements and on-ground practices, ensuring that environmental measures that need to be implemented across ministries to
safeguards are translated into measurable actions. try and achieve recognition of Malaysia as a low-risk country

The guidance document complements the existing Guidelines under the EUDR framework.
for Natural Resources and Environment (Audit) Rules, 2008 by Minister of Plantation and Commodities, Johari Abdul