Sustainability

Corporate Social Responsibility

Sabah Softwoods Berhad (SSB) received the "Ladang Bahagia" national award from Malaysia's Prime Minister, Yang Berhormat Datuk Seri Najib Tun Razak, in May 2009 and Deputy Prime Minister, Tan Sri Muhyiddin Yassin, in May 2010 consecutively. This is a testimony of our commitment to deliver our "WE GIVE BACK" promise.

People rank the highest hierarchy at SSB. Every year, more than RM15 millions of SSB's revenue is spent on improving the lives of our employees and their families. We provide modern amenities and comfortable housing for our 4000 over estate staff and workers by ensuring continuous providing treated water supply and free electricity supply to their homes. Medical care, 24-hour emergency help and ambulance services are made available to their families; free bus services to shuttle the children from the estates to the schools and back; and Day-Care Centre, as well as recreational and sports facilities are set up for the community used.

We have built places of worship, community halls, schools, police stations and security posts at various locations surrounding our estates. Our employees also receive continuous training and development to improve their knowledge and skills. We believe that the key to our success lies in having healthy, happy and competent employees.

Caring for the environment is a core value that we are committed to instill in each of our employees, irrespective of rank and seniority. Our employees understand that the way we treat the environment will ultimately affect the way the environment treats us. SSB is committed to managing all its logged-over forests with a long-term, sustainable plan that addresses all economic, social, environmental and cultural aspects, including proper care in maintaining the biological diversity, ecosystem vitality and soil quality of its plantations, as well as protecting the cultural values of its indigenous people.

We strive to build a profitable business that benefits the environment as well as our stakeholders, which include our shareholders, customers, forest users and employees. We subscribe to sustainable forest management principles and good agriculture practices.Our international accreditations include the Forest Stewardship Council^® FSC-C010070 and FSC^® Chain-of-Custody (COC) FSC-C104743 certifications. These recognitions endorse us as a premier forest management organization as much as it validates our environmental credentials.

Conservation and Commercial Forest Area

Sabah Softwoods Berhad (SSB) manages a total land bank of 60,618 hectares, of which 7,590 hectares (12%) are designated as Conservation and Commercial Forest Areas. Within this allocation, 1,824 hectares are maintained as commercial forest for sustainable economic utilisation, while 5,766 hectares are set aside as conservation forest to safeguard ecological integrity and environmental values. These areas encompass riparian reserves, protected steep terrain, water catchment zones, and a dedicated wildlife corridor. Through the protection and responsible management of these natural landscapes, SSB enhances ecosystem services, preserves habitat connectivity, and supports long-term biodiversity conservation.

Conservation & Biodiversity

An integral element of Sabah Softwoods Berhad’s conservation strategy is the establishment of a 1,067-hectare Wildlife Corridor, designed to reconnect fragmented forest reserves, namely Ulu Kalumpang Forest Reserve and Ulu Segama Forest Reserve. This corridor facilitates the safe and natural movement of wildlife, including the endangered Bornean pygmy elephant and other protected species. By restoring habitat connectivity, the corridor plays a vital role in reducing human–wildlife conflict, enhancing genetic diversity, and strengthening long-term habitat sustainability. A strict Wildlife Conservation Policy is firmly implemented across the Company’s entire land bank. Its enforcement is strengthened by trained personnel, systematic monitoring programs, and close collaboration with the relevant authorities, conservation organizations, and research institutions to ensure full compliance and the effective protection of biodiversity.

Biodiversity monitoring is further strengthened through GPS satellite tracking of Bornean elephants (Elephas maximus borneensis) and the deployment of strategically positioned camera traps across the operational landscape. To date, 174 mammal species, 47 reptile and amphibian species, and approximately 267 bird species have been recorded within the Company’s managed areas, reflecting the ecological significance and conservation value of the landscape.

In line with this commitment, SSB continues to collaborate with government agencies and non-governmental organizations (NGOs) to implement conservation initiatives within the Wildlife Corridor. These include the cultivation of Napier grass to enhance food sustainability and biodiversity conservation for elephants, undertaken in collaboration with the Malaysia Palm Oil Green Conservation Foundation (MPOGCF) and University Putra Malaysia (UPM). In addition, SSB is working towards participating in the Forest Carbon Offset (FCO) Programme and the Forest Conservation Certificate (FCC) initiative under the Malaysia Forest Fund (MFF). These efforts are part of SSB’s initiative to pursue the FCO pilot project and FCC certification, which aim to strengthen long-term forest conservation, promote sustainable ecosystem management, and support climate change mitigation through carbon sequestration.

Restoration & Climate Action

Since 2014, SSB has planted a cumulative total of 204,988 indigenous and fruit trees under its restoration and enrichment planting programs. The Conservation Nursery propagates native dipterocarp and non-dipterocarp species to support ongoing reforestation efforts. These initiatives enhance habitat quality, promote natural regeneration, and contribute to carbon sequestration in support of climate change mitigation.

Water & Environmental Management

Water resource protection is a core priority. We maintain riparian buffer zones ranging from 30 to 50 meters along major rivers to protect water quality and reduce soil runoff. Annual water quality assessments are conducted, and measures are in place to improve water efficiency and discharge standards in our operations. A comprehensive Forest Fire Management Plan and structured waste management practices further reinforce our commitment to minimizing environmental impact.

Certifications

Sustainability certifications for FSC® Well-Managed Plantation, FSC® Chain of Custody (CoC), MSPO, TLAS, and GGL remain valid and are effectively maintained.

At SSB, we believe that sustainable progress is driven by continuous improvement - safeguarding the environment while supporting responsible growth for the benefit of present and future generations.

Research & Development

Sabah Softwoods Berhad (SSB) advances sustainable plantation productivity through its dedicated Research & Development (R&D) department. The department develops elite planting materials and provides technical guidance on Best Operational Practices (BOP), with a strong focus on germplasm improvement and site management. These initiatives enhance the commercial performance value of key plantation species, including Eucalyptus pellita and its hybrids, Acacia mangium and its hybrids, Albizia falcataria, and Neolamarckia species. Through continuous innovation and applied research, SSB strengthens plantation resilience, improves yields, and supports long term sustainability in industrial tree planting.

Key Strategic Objectives

• Advance priority tree species through breeding programs and collaborative research partnerships.
• Develop and refine tissue culture (TC) protocols for commercial-scale production of elite clones.
• Optimize BOP through silvicultural research to improve plantation management practices.

With more 50 years of agroforestry experience, SSB strategically invests in R&D to improve yields and ensure long-term industry sustainability. The Tree Breeding, Tissue Culture Laboratory, and Silviculture programs deliver proven, measurable results.

Tree Breeding Program

The program generates superior planting materials, including Eucalyptus pellita seeds from the Seed Orchard, derived from diverse and expanded genetic populations. Since 2012, these materials have been supplied to local and international markets. Current efforts focus on clonal development for Eucalyptus pellita and its hybrids from high-performing selections, as well as high-tolerance Acacia mangium and hybrid clones. Advanced breeding techniques—such as hybridization, artificial inoculation from elite genetic sources, and incorporation of local species like Neolamarckia—enhance disease resistance and genetic diversity.

Tissue Culture Laboratory

This facility employs validated in-vitro protocols for Eucalyptus pellita and its hybrids, Acacia hybrids, Neolamarckia species, and oil palm (Elaeis guineensis). It produces scalable, uniform, disease-free elite ramets to enable rapid plantation establishment. Planned upgrades will boost annual production capacity for both tree species and oil palm ramets, supporting the establishment of tree plantations, pulp and woodchip output, and oil palm replanting programs.

Silviculture Program

The silviculture program enhances plantation growth and stands health through precise and science-based management practices. Key areas include site preparation and replanting, targeted fertilization, effective weeding, and vegetation control. These BOP improve nutrient uptake, reduce competition, and foster uniform canopies, yielding higher survival rates, faster growth, and resilient plantations.

Strategic Impact

SSB's R&D initiatives play a critical role in enhancing agro-forestry productivity, sustainability, and commercial scalability. Through focused germplasm and site management, it supplies elite planting materials and optimized BOP, achieving higher yields and resilient plantation across key, including Eucalyptus pellita, Acacia mangium hybrids, Neolamarckia species, and oil palm (Elaeis guineensis), supporting the long-term growth and sustainability of the plantation industry.