Daya Hikmat Sdn Bhd
Daya Hikmat Sdn Bhd (DHSB) was incorporated in 1990 and was acquired by the current shareholders in 2015 with the sole object of undertaking tree-planting on a commercial scale in accordance to Environment Impact Assessment guidelines. DHSB is very committed in adhering to these guidelines which deviate from the intention of most loggers who are in the business to extract timbers only but without due consideration for replanting.
Consequences of deforestation and how it is slowly killing our planet and the importance of trees in maintaining life on earth has been heightened by recent global warming and its adverse climatic effects. As a result of this, the need to hasten new thoughts and researches to find ways to restore and regenerate forests as an attempt to save our planet.
In silviculture, the tree planting activity undertaken by DHSB is known as reforestation. It involves planting seedlings over an area of land where the forest has been previously harvested. It is widely known in forest science that if performed properly, tree planting can result in the successful regeneration of a deforested area. Reforestation is the commercial logging industry’s solutions to regenerate and restore forests after large-scale destruction of old growth forests. This is the precise objective of the Company, to regenerate and restore trees to benefit the future generations in Malaysia.
Undoubtedly, trees are an integral element of our planet and environment, hence of human lives. Through the process of photosynthesis, trees takes in carbon dioxide and produce the oxygen we breathe. However, their contributions go beyond merely providing oxygen, but also better air quality enhancement, balanced ecosystem maintenance, climate betterment, water conservation, soil preservation, and wildlife conservation.
By virtue of the characteristics of photosynthesis – removal of carbon dioxide from air as tree grows, tree planting can be used as a geoengineering technique for greening projects. Tree planting also value add to economic and social welfare activities of our societies due to an increase in job opportunities in tree cultivation and forestry. At the macro level, the Malaysian timber sector contributes significantly to the nation’s economy representing 1.6% of the GDP and 2.3% of the country’s total merchandise exports in 2019. Malaysia is among the world’s largest exporters for timber products, exporting to over 160 countries; ranked 4th for plywood, 6th for both wooden furniture and frames, 8th for mouldings and 10th for sawn timber and top 20 for fiberboard, builders’ joinery and carpentry and veneer. (Source: The Star Malaysia, dated 25 Jan 2021)
Shareholders of DHSB firmly believe in and subscribe to the Environmental, Social and Governance (ESC) principles and strive to contribute toward making the earth a greener and healthier place by neutralize CO2 as more trees are being planted. Hence, their decision and strategy to invest in a tree planting company.
Over the span of 5 years from 2016 to 2021, DHSB has successfully completed the following tree planting projects, undertaken on its own and via its associate companies:
DHSB
500 acres comprise 105,000 trees. Planting commenced in August 2018 and completed in August 2020 despite steep challenges encountered as a result of sporadic Movement Restriction Orders (MCO) imposed by the Malaysian Government throughout 2020 due to Covid-19 pandemic. Expected duration to tree maturity is within 4 years, and tree harvest will commence in 2025.
IEZ Enterprise
1000 acres comprise 226,000 trees. Planting commenced in June 2016 and completed in April 2018. Expected duration to tree maturity is within 2 years, and tree harvest will commence in end of 2023.
Kibar Hasil Sdn Bhd
500 acres comprise 105,000 trees. Planting commenced in September 2020 and completed in October 2021. Expected duration to tree maturity is within 5 years, and tree harvest will commence in 2027.
All of 2000 acres of land aforementioned are located at HKS Sokor Taku, Mukim Sokor, Daerah Tanah Merah, Jejahan Kelantan Barat, Negeri Kelantan. The Company has also commenced work on a further 1000 acres, with more seedlings being planted each day.
Trees planted are of the Albasia type. Albasia wood (Albizia Falcata) has been a constructor’s choice due to its excellent properties. It is a very light yellowish timber, lighter than most pine species. This wood can be ready to harvest within 5 years because it is a fast-growing tree in the legume family. However, they are generally harvested in 6-8 years. Albasia tree can grow up to 1 meter in diameter and about 30 meters tall.
Demand for Albasia wood has been consistent in North Africa and the Middle East. It is estimated that growers will gross sales of about US $ 125,000 / hectare in 5 years. After drying completely, this wood has 8% to 12% moisture content.
Albasia is a softwood with durable and aesthetic properties. Therefore, it is very versatile and can be applied for a wide range of commercial usage such as wooden art, musical instrument, plywood for construction, interior furniture, decorative veneer etc. Lightweight plywood made from Albasia wood is in high demand because of multipurpose usage in the lightweight construction sector. Although lightweight and straight grain, Albasia wood is still very tough and strong and can be used to make beams.
All the tree planting projects aforementioned were carried out mindful of the need to protect the natural environment. As such, all guidelines set by Environmental Impact Assessment were stringently adhered to in considering impacts to the surrounding areas before arriving at the final decision to commence tree planting.
The shareholders of DHSB firmly subscribe to the belief that for long term corporate success and sustainability, the Company, management and employees alike must approach business dealings with a high standard sets of good values, principles and practices encompassing integrity and fairness of doing business in a responsible manner. On the important aspect of corporate governance, the Company is working diligently toward incorporating the Ten Principles of the UN Global Compact (UNGC) into its business plans and decisions, human resources administration and management, work environment, standard operating procedures and work processes.
It is the aspiration of the shareholders that DHSB will become a member of UNGC in the very near future and has commenced the process of applying for membership to this prestigious organization.
Only by incorporating and adhering to the right business practice and be innovative can ensure that the local timber industry remains competitive and continue to be a major contributor to the Malaysian economy for many years to come.