Felda Sahabat-Tawau

Agarwood Plantation & Nursery Exploitation-Felda Sahabat-Tawau

Agarwood Plantation - Felda Sahabat

Felda Wilayah Sahabat, developed 27 years ago, has emerged as a major economic driver for residents in Sabah's east coast.

Previously known as Dent Peninsula, the 101,171-hectare Felda Wilayah Sahabat now is home to 872 settlers, and comes complete with full infrastructural facilities, making it the most successful Felda scheme in the country.

The development of the area had brought in facilities like schools, clinics, water and electricity supply, shops and a mosque. Its existence has triggered the construction of palm oil mills, and more importantly the establishment of a town centre in Cenderakasih, hence, generating more economic activities for people of Lahad Datu.

Felda Wilayah Sahabat is divided into five zones which are mostly cultivated with oil palm and is also well linked by road from Lahad Datu.

Meanwhile, Felda has also secured the State Government's approval for more lands in the Lahad Datu, Kinabatangan and Tawau districts to support its plan to open more settlements for the locals.

Project Description

The objectives of the Project were (i) to reestablish tree cover on unstocked and degraded forest land, thereby converting such lands to productive use; (ii) to produce Agarwood resinous for industrial use and for the development of The company of SolidGold2u Berhad. The project comprises lands profile of 20 hectares involved with a total of 10,000 Agarwood trees and Agarwood Nursery.

Proposed Project Results

Introduction of new kinds of high-yield Agarwood resinous, developing agricultural methods of cultivating plantations with Agarwood oils, resins and introducing them into the economy.

Project Support

Project provided 30 days of training. Project consultants provided significant training early on, but training was insufficient after the project was expanded. To accommodate the new requirements, training program and coverage should have been increased. Lack of proper training for extension staff in the newly included districts resulted in insufficient provision of extension support to farmers and individual investors. Moreover, frequent turnover of project staff reduced the impact of the training initiatives.

Description of the Plantations Projects Cost

The total project cost was about RM3 million, against the appraisal estimate of RM5 million. Below here was the description of the farm, plantations and their financial needs:

• Land Clearing @ 1000/hectares:. Cost: approximately RM20,000.
• Young trees @ 10,000 x 5.00, Cost: approximately RM 50,000
• Planting/ labor, Cost: approximately RM 12,000
• Custody/ fertilizer/ weeding , Cost: approximately RM32,000
• First inoculation, Cost: approximately: RM20,000,00
• Second inoculation: Cost: approximately RM 10,000,00
• Harvesting (1st): Cost: approximately RM 100,000
• Harvesting (2nd): Cost: approximately RM 50,000
• Overall size of the plantation: 20 hectares. Total setting up cost: RM3,264,000.00

Return Scheme of the Investment

The plantations return after the 5-year startup period, when plants become mature.
6th year: plantation reaches the expected yield level
Return in the 6th year (without taxes)

I. Resinous Wood sale, Return approximately RM 48,000,00.00
II. Agarwood sale 1kg/tree@2.5k, Return approximately RM 32,000.00
III. Agarwood Bonsai sale 2kg/tree@3k, Return approximately RM193,000,00.00

The total projection will be in cash surplus =RM 29,736,000.00