All forest produce property of the State Authority
All forest produce situate, lying, growing or having its origin within a permanent reserved forest or State land shall be the property of the State Authority except where the rights to such forest produce have been specifically disposed of in accordance with the provisions of this Act or any other written law.
Prohibition on taking of forest produce from permanent reserved forest or State land unless licensed, etc.
(1) No person shall take any forest produce from a permanent reserved forest or a State land except— (a) under the authority of a licence, minor licence or use permit; or (b) in accordance with any other written law. (2) Any person who contravenes subsection (1) shall be guilty of an offence and shall on conviction be liable to a fine not exceeding *five hundred thousand ringgit and to imprisonment for a term which shall not be less than one year but shall not exceed twenty years. (3) Any person convicted of an offence under this section may, in addition to any penalty imposed on the conviction, be ordered to pay, in respect of any forest produce unlawfully taken, to the State Authority— (a) a sum not exceeding ten times the royalty, premium and cess; (b) a sum not exceeding ten times the value of such forest produce; and (c) any other charges payable, and any sum ordered to be so paid shall be recoverable as if it were a fine so imposed. *NOTE—Previously “ten thousand ringgit or to imprisonment for a term not exceeding three years or to both”–see the National Forestry (Amendment) Act 1993 [Act A864].
Power to issue licences, use permits, etc., by way of tenders, agreement, etc.
Any permission— (a) to take forest produce from a permanent reserved forest or State land by way of licence or minor licence; or (b) to occupy or carry out any activity upon any land in a permanent reserved forest by way of a use permit, may be granted by the State Authority— (aa) after it has caused to be invited tenders in respect thereof; (bb) after it has negotiated an agreement in respect thereof; or (cc) in such other manner or by such other process as it may deem fit in the circumstances of any particular case.
Buildings to vest in State Authority on determination of licences, etc.
(1) On the determination of any licence, minor licence or use permit issued under this Act or any previous forest law, there shall, subject to subsection (3), vest in the State Authority all buildings on the land (by whomsoever erected) other than any of temporary construction and capable of removal. (2) Subject to subsection (3), no compensation shall be payable by the State Authority in respect of any building vesting in it pursuant to this section. (3) Subsections (1) and (2) shall have effect subject to any provision to the contrary in the licence or permit.
Power of State Authority to vary provisions or extend time
The State Authority may— (a) vary or rescind any provision contained in any licence, minor licence, use permit or removal licence issued under this Act or the provisions of any previous forest law, where satisfied that compliance therewith is impossible or that great hardship would otherwise accrue to the licensee or holder of the minor licence, removal licence or use permit, as the case may be; and (b) to extend on such terms as the State Authority may think fit to impose, the time within which any act is required to be done by any provision of this Act. Chapter 2—Licences
Power to license the taking of forest produce from permanent reserved forest or State land
The State Authority may, in accordance with the provisions of this Chapter and of any rules, permit the taking of forest produce under licence from any permanent reserved forest or State land.
Requirements to be satisfied by applicants
Unless otherwise exempted by the State Authority, before any licence is issued, the Director shall require the applicant to do any or all of the following: (a) to demarcate on the ground the area or part thereof covered by the licence, the situation and extent of which shall be determined by the Director in accordance with the provisions of the licence, within which operations will be carried out by the applicant on becoming a licensee; (b) to prepare— (i) a forest management plan or forest harvesting plan; and (ii) a reforestation plan in the manner to be specified by the Director; (c) to register with the Director a property mark which is approved by the Director.
Durations, conditions and form of licence
(1) Except in so far as it is otherwise prescribed, every licence shall be issued for a term of twelve months from the date of issue thereof, and, subject to section 22, may be renewed from time to time. (2) Every licence shall have effect subject to such provisions as may be contained therein and, so far as not inconsistent therewith, to any other provisions which may be prescribed. (3) Every licence shall be in Form 1 and, in the case of renewal of such licence, it shall be endorsed with a note of such renewal and the date of its intended expiry.
Renewal of licences
(1) Licences may, subject to any contrary direction by the State Authority and to any rules, be renewed on behalf of the State Authority by the Director. (2) Every application for the renewal of a licence shall be submitted to the Director not later than thirty days before the expiry thereof. (3) If the Director approves the application, he may renew the licence for a term not exceeding six months, and in so renewing may vary, delete or add to the provisions contained therein.
Licence not capable of transfer or assignment
(1) Except as provided in subsections (2) and (3), a licence shall not be capable of transfer or assignment and every licence shall terminate on the death of the person, or dissolution of the body, for the time being the holder thereof. (2) A licence issued to a statutory body may be transferred or assigned with the prior written consent of the State Authority. (3) The State Authority may, in the event of the death or incapacity of the person for the time being the holder of a licence, authorize the transfer or assignment of the licence.
Forest management plan, forest harvesting plan, etc., to be carried into effect
(1) A licensee who has been required under section 20 to prepare— (a) a forest management plan or forest harvesting plan, as the case may be; and (b) a reforestation plan, shall, from a date to be appointed by the Director, carry them into effect to the satisfaction of the Director. (2) Where a licensee, without reasonable excuse, fails to carry into effect a reforestation plan to the satisfaction of the Director, the Director may in addition to revoking the licence, require the licensee to pay forthwith to the State Authority a sum equivalent to the amount that would be incurred by the State Authority if it were to undertake or to engage any person to carry into effect the plan, such amount to be assessed by the Director in accordance with the guidelines and rates which the State Authority may prescribe.
Director may order licensee to cease operations where there has been a contravention of the Act or licence
(1) Where the Director has reason to believe that a licensee has contravened any of the provisions of this Act or of a licence, he may, by serving a notice in Form 2 on such licensee, order such licensee, his servants and agents to cease immediately all operations in the licence area or any part thereof. (2) Any person who fails to comply with a Form 2 notice shall be guilty of an offence and shall on conviction be liable to a fine not exceeding *fifty thousand ringgit or to imprisonment for a term not exceeding **five years or to both such fine and imprisonment; and if the offence is a continuing one, to a further fine not exceeding ***one thousand ringgit for every day or part of a day during which the offence has continued.
Director may cancel Form 2 notice
The Director may at any time cancel a Form 2 notice if he considers it just or expedient to do so. *NOTE—Previously “five thousand ringgit”–see the National Forestry (Amendment) Act 1993 [Act A864]. **NOTE—Previously “two years”–see the National Forestry (Amendment) Act 1993 [Act A864]. ***NOTE—Previously “three hundred ringgit”–see the National Forestry (Amendment) Act 1993 [Act A864].
Suspension and revocation of licence following service of Form 2 notice
(1) Save where the Form 2 notice is sooner cancelled under section 26, the Director shall within sixty days of the service thereof, require the licensee named in the notice to appear before him and to show cause as to why his licence should not be suspended or revoked. (2) A person called upon to show cause under subsection (1) shall be supplied by the Director with particulars in writing of the contravention alleged against him, and he may appear in person or be represented by any person authorized by him in writing. (3) If after the hearing the Director is satisfied that the licensee has contravened any of the provisions of this Act or of the licence, he may— (a) revoke the licence; or (b) suspend the licence for such period as he may determine. (4) A person aggrieved by any decision of the Director under subsection (3) may, within thirty days of the receipt by him of the decision, appeal to the State Authority whose decision shall be final. (5) A decision of the Director under subsection (3) shall be of immediate effect notwithstanding any appeal under subsection (4). Chapter 3—Minor Licences
Power to permit the taking of forest produce by way of minor licence
The State Authority may, in accordance with the provisions of this Chapter and of any rules, permit the taking under licence (to be known as minor licence) of any major forest produce not exceeding seventy cubic metres or any minor forest produce from any— (a) permanent reserved forest; or (b) State land.
Issuance of minor licences by Director
Minor licences may, subject to any contrary direction by the State Authority and to any rules, be issued or renewed on behalf of the State Authority by the Director.
Durations, conditions, etc., and form of minor licences
(1) Except in so far as it is otherwise prescribed, every minor licence shall be issued for a term expiring not later than the end of the calendar year in which it commences, and, subject to subsection (3), may be renewed from time to time. (2) Every minor licence shall have effect subject to such provisions as may be contained therein and, so far as not inconsistent therewith, to any other provisions which may be prescribed. (3) The Director may, on the application of a holder of a minor licence made not later than thirty days before the expiry thereof, renew the minor licence for a term of not more than six months, and when renewing a minor licence, the Director may vary, delete or add to the provisions contained therein. (4) Every minor licence shall be in Form 3 and in the case of renewal of such licence it shall be endorsed with a note of such renewal and the date of its intended expiry.
Minor licences not capable of transfer or transmission on death
A minor licence shall not be capable of assignment; and every minor licence shall terminate on the death of the person, or dissolution of the body, for the time being the holder thereof. Chapter 4—Use Permits
Occupation of, or carrying out activities upon, permanent reserved forest prohibited
(1) Subject to subsection (3), no person shall occupy or carry out any activity upon any land within a permanent reserved forest, unless he is the holder of a use permit. (2) Any person who contravenes subsection (1) shall be guilty of an offence and shall on conviction be liable to a fine not exceeding *fifty thousand ringgit or to imprisonment for a term not exceeding **five years or to both such fine and imprisonment. (3) Subsection (1) shall not apply to the occupation of, or the carrying out of any activity upon, any land in a permanent reserved forest if such act or activity is— (a) the exercise of a right conferred or the performance of a duty imposed by any licence, minor licence, entry permit or road permit; or (b) authorized or required to be done under this Act.
Power to permit the occupation of, or the carrying out of activities in, permanent reserved forests
(1) The State Authority may, in accordance with the provisions of this Chapter and of any rules, permit the occupation of, or the carrying out of any activity upon, any land in a permanent reserved forest. (2) Permits to occupy or carry out any activity upon any land within a permanent reserved forest issued by the State Authority under subsection (1) shall be known as use permits.
Issuance of use permits by Director
Use permits may, subject to any contrary direction by the State Authority and to the provisions of any rules, be issued or renewed on behalf of the State Authority by the Director for the carrying out of any of the following activities: (a) research; (b) education or training; (c) recreation; (d) use of water resources except the construction or operation of hydro-electric dams; (e) cultivation of vegetables and fodder crops; (f) establishment of conversion plants; (g) establishment of logging infrastructures. *NOTE—Previously “five thousand ringgit” –see the National Forestry (Amendment) Act 1993 [Act A864]. **NOTE—Previously “two years” –see the National Forestry (Amendment) Act 1993 [Act A864].
Use permits not to be issued for the purpose of taking forest produce
Nothing in this Chapter shall be construed as authorizing the issue of a use permit for the purpose of permitting the holder thereof to take forest produce from a permanent reserved forest, however a use permit issued may contain a provision permitting the holder thereof to take forest produce from the area specified in the permit if— (a) the taking of such forest produce is incidental to or necessary for the purpose for which the use permit is issued; or (b) such forest produce is, under the use permit, allowed to be grown by the holder thereof.
Durations, conditions, etc., and form of use permits
(1) Except in so far as it is otherwise prescribed, every use permit shall be issued for a term expiring not later than the end of the calendar year in which it commences, and, subject to subsection (3), may be renewed from time to time. (2) Every use permit shall have effect subject to such provisions as may be contained therein and, so far as not inconsistent therewith, to any other provisions which may be prescribed. (3) The Director may, on the application of a holder of a use permit made not later than thirty days before the expiry thereof, renew the use permit for a term of not more than one calendar year, and when renewing a use permit, the Director may vary, delete or add to the provisions contained therein. (4) Every use permit shall be in Form 4 and, in the case of renewal of such use permit, it shall be endorsed with a note of such renewal and the date of its intended expiry.
Use permits not capable of transfer or transmission on death
A use permit shall not be capable of assignment; and every use permit shall terminate on the death of the person, or dissolution of the body, for the time being the holder thereof.
Use permit may be suspended or revoked
A use permit may be suspended or revoked in the manner and to the extent provided in sections 25, 26 and 27 as if a use permit were a licence referred to in those sections.
Movable property remaining on land on expiration of use permit
Any movable property brought upon the land covered by a use permit may be removed by the owner thereof during the term of the use permit, but if any movable property remains on such land for more than ninety days after the expiry or revocation of the permit, the Director may dispose of the property in such manner as he considers fit, and may recover from the owner thereof or the holder of the use permit such expenses as are incurred by him in disposing of such property. Chapter 5—Removal Licence
Removal licence is required for the removal of forest produce from certain land
(1) No person shall remove any forest produce from any— (a) alienated land; (b) land held under a temporary occupation licence; (c) mining land; or (d) reserved land, unless he is the holder of a removal licence. (2) Any person who contravenes this section shall be guilty of an offence and shall on conviction be liable to a fine not exceeding *five hundred thousand ringgit and to imprisonment for a term which shall not be less than one year but shall not exceed twenty years. (2A) Any person convicted of an offence under this section may, in addition to any penalty imposed on the conviction, be ordered to pay, in respect of any forest produce unlawfully taken, to the State Authority— (a) a sum not exceeding ten times the royalty, premium and cess; (b) a sum not exceeding ten times the value of such forest produce; and (c) any other charges payable, and any sum ordered to be so paid shall be recoverable as if it were a fine so imposed. (3) The State Authority may exempt from this section any forest produce removed from any alienated land by any aborigine for any of the purposes specified under paragraph 62(2)(b). *NOTE—Previously “one thousand ringgit or to imprisonment for a term not exceeding six months or to both” –see the National Forestry (Amendment) Act 1993 [Act A864].
Power to permit removal of forest produce
The State Authority may, in accordance with the provisions of this Chapter and of any rules, permit the removal under licence (to be known as removal licence) of any forest produce from any— (a) alienated land; (b) reserved land; (c) mining land; or (d) land held under a temporary occupation licence.
Issuance of removal licences by Director
(1) Removal licences may, subject to any contrary direction by the State Authority and to any rules, be issued on behalf of the State Authority by the Director. (2) A removal licence shall only be issued— (a) in the case of alienated land, to the owner of the land or, with his consent, to any other person; (b) in the case of land held under temporary occupation licence, to the holder of the licence or, with his consent, to any other person; (c) in the case of a mining land, to the person to whom the mining lease or certificate has been granted or issued or, with his consent, to any other person; or (d) in the case of reserved land— (i) to the person who is designated under the National Land Code as the officer for the time being having the control of the reserved land or, with his consent, to any other person; or (ii) if such land has been leased by the State Authority, to the person to whom the lease has been granted or, with his consent, to any other person.
Durations, conditions, etc., and form of removal licences
(1) Except in so far it is otherwise provided, every removal licence shall be issued for a term not exceeding six months from the date of issue thereof. (2) Every removal licence shall have effect subject to such provisions as may be contained therein and, so far as not inconsistent therewith, to any other provisions which may be prescribed. (3) Every removal licence shall be in Form 5.
Removal licences not capable of transfer or transmission on death
A removal licence shall not be capable of assignment; and every removal licence shall terminate on the death of the person, or dissolution of the body, for the time being the holder thereof. Chapter 6—Entry Into Permanent Reserved Forest
Power to declare permanent reserved forest open forest or closed forest
The State Authority may, by notification in the Gazette, declare any permanent reserved forest or part thereof to be an open forest or a closed forest, and until a permanent reserved forest or part thereof has been so declared to be an open forest it shall be deemed to be a closed forest.
State Authority to consider protection of the forest and needs of the public, etc.
In exercising the powers under section 45, the State Authority shall give due consideration to the necessity of protecting the forest and the environment and to the recreational and other needs of the public.
No entry into closed forests with certain exceptions
(1) No person shall enter any closed forest except— (a) a licensee, his servants or agents, but only for the purpose of exercising the rights granted by the licence; (b) a forest officer or a person authorized by any other written law, but only for the purposes of carrying out the functions for which he is appointed or authorized; (c) a person holding a permit to enter permanent reserved forest, but only for the period stated in the permit; (d) a holder of a use permit, his servants and agents, but only for the purpose of exercising the rights granted by the use permit; and (e) any other person authorized in writing by the Director but only for the purpose authorized. (2) An entry permit may only be issued by the Director or by a forest officer authorized by the Director to issue the same. (3) Every entry permit shall be in Form 6. (4) Any person who contravenes subsection (1) shall be guilty of an offence and shall on conviction be liable to a fine not exceeding *ten thousand ringgit or to imprisonment for a term not exceeding three **years or to both such fine and imprisonment. *NOTE—Previously “five hundred ringgit” –see the National Forestry (Amendment) Act 1993 [Act A864]. **NOTE—Previously “three months” –see the National Forestry (Amendment) Act 1993 [Act A864].
Power to suspend rights of entry
The Director or any officer authorized to issue entry permits may suspend the right of entry of any of the persons referred to in paragraphs 47(a), (c) and (d)— (a) if he has reasonable cause to suspect that there has been a breach of— (i) any of the provisions of this Act; or (ii) any of the provisions of a licence, minor licence, use permit, entry permit or road permit; or (b) if there has been an occurrence of an event or condition or fire or other hazard that may endanger the forest.
Power to limit rights of entry into open forest
The Director may impose such conditions and restrictions as he considers fit on the rights of entry into an open forest of any person or class of persons. Chapter 7—Roads in Permanent Reserved Forest and Licence Area
Use of forest roads without road permit prohibited
(1) No person shall use any motor vehicle on any forest road unless he is the holder of a road permit issued by the Director. (2) Every road permit shall be in Form 7. (3) The Director may exempt any person or class of persons from subsection (1). (4) Any person who contravenes this section shall be guilty of an offence and shall on conviction be liable to a fine not exceeding *ten thousand ringgit. (5) In this section, “motor vehicle” means every description of vehicle propelled by means of mechanism contained within itself and constructed or adapted so as to be capable of being used on roads, and includes a trailer. *NOTE—Previously “two hundred and fifty ringgit” –see the National Forestry (Amendment) Act 1993 [Act A864].
Director may construct forest roads
The Director may cause to be constructed or maintained such forest roads as he considers necessary for the purposes of this Act.
Licensee to construct and maintain roads
A licensee shall, in and about the licence area, construct at his own expense all roads that are prescribed in the forest management plan or forest harvesting plan or required by the Director to be constructed; and such roads, together with any other roads that are already in existence at the time of obtaining the licence, shall be constructed, maintained and, upon the expiry of the licence, left, in accordance with the forest management plan or timber harvesting plan or requirements prescribed by the Director, as the case may be.
Licensee entitled to use roads constructed or maintained by him
A licensee who constructs or maintains a road under section 52, his servants and agents, shall be entitled to the use of such road for the purpose of taking forest produce from his licence area and, except as may be provided under section 54, he shall not levy any charge or toll for the use of such road by other persons.
Director may require user of forest roads to pay toll to licensee
Where in respect of a forest road constructed or maintained by a licensee under section 52 the Director, under subsection 50(1), permits the use of such road by a person other than the licensee, his servants or agents, the Director may direct that such person pay a toll to the licensee at such rate as the Director may determine for the use of such road, provided that the Director shall not be liable for any non-payment of any toll to the licensee by such person.
Non-liability of the Director or State Authority for lack of repair of forest roads
Within a permanent reserved forest or a licence area, neither the State Authority nor the Director is under any duty to repair or maintain any road or to erect signs warning of any conditions or hazards thereon, and is not liable for any injury or death to any person or damage to any property caused by the condition or the standard of construction or maintenance of such road. Chapter 8—Forest Development Fund
Establishment and administration of the Forest Development Fund
(1) The State Authority shall establish a fund to be known as the “Forest Development Fund” (hereinafter referred to as the “Fund”). (2) The Fund shall be administered by a committee to be known as the “Forest Development Fund Committee” (hereinafter referred to as the “Committee”) consisting of— (a) the State Secretary, as Chairman; (b) the State Financial Officer; and (c) the Director.
Moneys to be paid into the Fund
(1) There shall be paid into the Fund— (a) such sum as shall be annually appropriated by the State Legislative Assembly necessary for the purposes of the Fund for the following financial year; (b) the forest development cess collected under section 60; (c) any loan or grant given to the State Authority by the Federal Government for the purposes of the Fund; (d) any money paid to the State Authority under subsection 24(2); and (e) all moneys collected under any previous forest law by the State Authority for the purpose of financing research on forestry, silviculture works, forest surveys, inventory and other related operations connected with forest development in the State, which remains unexpended. (2) All moneys paid into the Fund shall— (a) be deposited in Bank Negara Malaysia or in any bank duly licensed under the *Banking Act 1973 [Act 102]; or (b) be invested in accordance with the Trustee Act 1949 [Act 208]. *NOTE—The Banking Act 1973 [Act 102] has since been repealed by the Banking and Financial Institutions Act 1989 [Act 372]–see section 128 of Act 372.
Purposes of the Fund
The Fund shall be used for the following purposes: (a) the preparation of the State forest management plans required under paragraph 4(b); (b) the preparation and implementation of reforestation plans required under paragraph 4(c); (c) the reviewing of the State forest management plans and reforestation plans required under paragraph 4(d); (d) the preparation and implementation of programmes relating to amenity forests required under paragraph 4(e); and (e) any expenses incurred by the State Authority in carrying into effect a reforestation plan under section 24.
Accounts and audit
(1) The Committee shall keep proper accounts and other records in respect of the operations of the Fund, and shall cause to be prepared a statement of accounts in respect of each financial year. (2) The Committee shall cause its accounts to be audited annually by the Auditor General. (3) As soon as the accounts of the Committee have been audited, but not later than six months after the end of the financial year, the Committee shall cause a copy of the audited statements of accounts to be transmitted to the State Authority together with a copy of any observations made by the Auditor General on the statement or on the accounts of the Committee. (4) The Menteri Besar or Chief Minister, as the case may be, shall cause a copy of the statement and observations transmitted to the State Authority under subsection (3) to be laid before the State Legislative Assembly.
Forest development cess
(1) For the purposes of the Fund, there shall be payable to the State Authority a cess (to be known as forest development cess) in respect of any of the forest produce, specified in the Third Schedule, removed from any permanent reserved forest, State land, reserved land, mining land or alienated land, at the rate prescribed in that Schedule. (2) The State Authority may, by order,— (a) prescribe the manner of collection of such cess; and (b) amend the Third Schedule. (3) Subsection (1) shall not apply to the removal of forest produce by a licensee who has been required to carry into effect a reforestation programme under section 24.
Provisions on this page are reproduced verbatim from official open data. See the attribution line.
Text as at 1 January 2006 (LOM reprint); amendments made after that date may not be incorporated. Read the official text ↗
Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).