But sentiment is bad in short term but most of the risk is alrdy priced in. At 7. 5 sen mkt cap is abt rm300m for profit of close to rm40m per annum. Consider it another myeg scenario.

FMU5 is a concession area carved out since 1996. Pworth did not get concession direct fr state govt but bought it fr previous concession holder with consent fr state govt. There is some posturing by new state govt but I cannot imagine that they can cancel the concession esp after the public have acted in good faith to subscribe to the rights issue. If there was anything wrong or irregular state govt shld hve stopped the acquisition much earlier not when it is completed and when public investment money amounting to hundreds of millions is involved.

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FMU (Forest Management Unit) No.5 Trusmadi Forest Reserve (Class II)
1. Lately, many concerns and criticisms have been expressed through the social-media, asserting that Gunung Trusmadi, the 2nd highest mountain in the country, will be affected by logging. Such a concern is appropriate. However, and unfortunately, it has been soiled by misfacts, distortions, and misinformation.

2. The facts are as follows:
(i) Trusmadi Forest Reserve was first gazetted as a Class II (Commercial Forest Reserve) in 1961, covering 175,897 hectares. From then onwards, it had been licenced and re-licenced for short term logging at least twice or more.

(ii) At one time, the peak of Mt Trusmadi was also licenced for 25 years as part of a concession licence.

(iii) In 1997, under the newly launched SFM (Sustainable Forest Management) forest policy, Trusmadi Forest Reserve ( 175,897 ha.) was split into 2 management units – FMU10 (74,736 Ha.) left for conservation, but still under Class 2 and the balance as FMU 5 (101,161 Ha., licenced under the FMU system for 100 years and to follow the model of Deramakot. It was licenced to Anika Desiran Sdn Bhd, one of the (10) pioneer licencees, chosen by the government at that time.

(iv) Unfortunately, the Licensee failed to meet its obligations, in that, little work was carried out on the ground except for some forest tending or silviculture and the establishment of a 600 hectare (approx.) rubber plantation. The rubber plantation failed due to physical and climatic reasons. No real harm was done because there was little or no logging allowed by the government. This stagnant situation persisted for at least (20) years. However, in another sense, it was a blessing in disguise because the forests grew back due to little disturbance except for community encroachments.

(v) In the meantime, to strengthen conservation and for the security of tenure of FMU 10, the other portion of Trusmadi Forest Reserve and unlicenced, was proclaimed by the Rt Hon CM, Datuk Sri Panglima Musa Haji Aman as a Class I (protection) forest reserve in 2014 and to be directly managed by the Forestry Department purely for protection and conservation.

(vi) FMU 10 also received the coveted award as a “well managed forest” under the Gold Standard of the FSC (Forest Stewardship Council) in 2015.

(vii) To distinguish the Class I and Class II areas, the Trusmadi Forest Reserve portion of FMU10, was renamed Nuluhon Trusmadi Forest Reserve – Class I. This is where Mt Trusmadi and its sister peaks are sited – in Tambunan. Not in FMU 5 – Ranau. Mistaken identity may be (1) reason for the confusion.

(viii) The State Government also canceled and revoked all licences issued by a previous government, that covered Nuluhon Trusmadi Forest Reserve (class I ), including the bizzare “Peak Licence”.

(ix) The next burden to be addressed was FMU 5, licenced to Anika Desiran Sdn Bhd.

(x) The licencee appealed to the government that they be allowed to go into partnership with a 3rd party who have successfully embarked on the management of their own FMU licenced area, subject to whatever conditions the State Government may wish to impose apart from what are in the Licence Agreement. This was in 2016.
(xi) In principle, this has been agreed subject to more stringent measures to protect the environment that include the following, amongst others.
(a) The licencee surrenders 12,241 ha. of good forests in its northern border with FMU10 (Nuluhon Trusmadi Forest Reserve) to be fused with FMU10 and made into a Class I protection forests. This exercise was completed at the November 2016 State Assembly, making Nuluhon Trusmadi Forest Reserve now 86,977 ha. (74,736ha + 12,241ha). In addition, the government gazetted 1,068 ha of stateland, in Tambunan and also fused it with FMU 10. This new reserve, gazetted in 2010 called Kiluyu Forest Reserve of 1,068 ha. is now managed under FMU 10, making a totally protected management area of 88,045 Ha.

With the excision, the Anika area is now only 88,920 ha, a reduction of 12%.

(b) Riparian reserves are now widened to 50-100m depending on the width of rivers and waterways, from a standard 30m – a 50% to 300% widening of buffers.

(c) Only NFM (Natural forest management) can be practiced. If there is need for planting in highly degraded areas with conversion, this is restricted to indigenous species only and needs prior verification and a comprehensive planting plan (CPP). The gross area will be no more than 10,000 ha.

(d) Ril (Reduced Impact Logging) is compulsory, using mostly winched cable systems – e.g. Log Fisher, Cable Yarders.

(e) Prohibited species remain protected with the addition of (2) new species, i.e. Oaks and Chestnut species which are fruit trees.

(f) HCVS (high conservation value areas) are to be excised from CHPs (comprehensive harvest plans).

luxchem only counter rated 10 (strongest buy) under birsamid coverange

mrt2 alignment public display starts tomorrow!

ytl land due for rerating as mrt 2 line alignment will be released in mid-may. two mrt stations in sentul west and east in alignment..