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Kota Kinabalu: Sabah became the first in the world to align its Timber Legality Assurance System with both the European Union Deforestation Regulation (EUDR) and the EU Corporate Sustainability Due Diligence Directive (CS3D) with the launch of the Sabah Timber Legality Assurance System Plus (TLAS+).

Sabah Chief Conservator of Forests Datuk Frederick Kugan said it marks a major milestone in Sabah’s long-standing commitment to sustainable forest management, legality, transparency and global market credibility.

Frederick said forests have been a major driver of Sabah’s socio-economic development since independence, contributing nearly 50 per cent of State revenue in the mid-1980s, although this reliance also placed pressure on forest resources.

“However, these forests are not lost. With sustained, science-based restoration and improved governance, the forests condition can and has been progressively restored,” he said.

Over the past three decades, the Sabah Forestry Department has strengthened governance frameworks, restored degraded forests and expanded conservation efforts through strategic partnerships. 

He said about 63pc of Sabah’s land mass, or approximately 4.6 million hectares, remains under forest cover, exceeding the national commitment of 50 per cent, while 3.8 million hectares, or about 52pc of the State’s land area, are legally protected as Permanent Forest Reserves, Parks and Wildlife Conservation Areas.

He said Sabah’s commitment to gazette 30pc of its land as Totally Protected Areas (TPAs) by 2025 further demonstrates the State’s leadership in forest conservation, with about two million hectares or 27pc already legally gazetted as TPAs.

Frederick said the Sabah TLAS, first established in 2009, is recognised internationally as one of the most advanced timber legality systems in the region, covering forest operations as well as downstream processing and trade.

“Over the years, we have continued to strengthen the system through independent third-party audits, digital traceability and enhanced governance, ensuring that Sabah timber remains accepted in major markets including Europe, the United States, Japan, Australia and Korea,” he said.

He said the introduction of the EUDR means legality alone is no longer sufficient, as timber entering the EU market must be deforestation- and forest-degradation-free by 30 December 2025, risk-assessed and traceable across the entire value chain.

In response, Frederick said the Sabah Forestry Department entered into a strategic collaboration with the EU-Malaysia Cooperation Facility in June 2024 to strengthen the system into what is now known as Sabah TLAS+, aligned with EUDR requirements.

He said TLAS+ also incorporates the EU Corporate Sustainability Due Diligence Directive (CS3D) on a voluntary basis, requiring businesses to identify and address adverse human rights and environmental impacts across their entire value chains.

“This process has involved extensive technical consultations, industry dialogues and capacity-building to ensure that the updated framework not only meets international requirements but also remains practical and implementable for Sabah’s timber industry,” he said.

Frederick said TLAS+ incorporates strengthened traceability and geolocation systems, clearer legality and compliance checkpoints, improved monitoring and verification, and reinforced social and labour safeguards across upstream and downstream operations.

Importantly, he said TLAS+ introduces two new principles – Principle 7 for deforestation and forest degradation-free compliance under the EUDR, and Principle 8 for CS3D to address human rights and environmental risks across the timber value chain.

“The Sabah TLAS+ works as one single system that covers normal legality, deforestation-free compliance and CS3D requirements. Sabah is the first in the world to align its Timber Legality Assurance System with both EUDR and EU CS3D requirements,” he said.

He expressed appreciation to the EU for its technical and financial support, and thanked industry partners for their strong commitment and readiness to improve their systems to meet new global expectations.