(i) to dedicate as Permanent Forest Estate sufficient areas strategically located throughout the country in accordance with the concept of rational landuse. The Permanent Forest Estate will be managed and classified under four major functions:-

(a) PROTECTION FOREST for ensuring favourable climatic and physical conditions of the country,

the safeguarding of water resources, soil fertility, environmental quality, conservation of biological

diversity and the minimization of damage by floods and erosion to rivers and agricultural lands;

(b) PRODUCTION FOREST for the supply in perpetuity at reasonable rates of all forms of forest produce

which can be economically produced within the country and are required for agricultural, domestic and

industrial purposes, as well as for export;

(c) AMENITY FOREST for the conservation of adequate forest areas for recreation, ecotourism and in

promoting public awareness in forestry; and

(d) RESEARCH AND EDUCATION FOREST for the conduct of research, education and conservation of

biological diversity.

(ii)to manage the Permanent Forest Estate in order to maximize social, economic and environmental benefits for the nation and its people in accordance with the principles of sustainable management;

(iii) to implement a planned programme of forest development through forest regeneration and rehabilitation operations in accordance with appropriate silvicultural practices, as well as the establishment of forest plantations of indigenous and exotic species to supplement timber supply from the natural forest;

(iv) to promote efficient harvesting and utilization within the production forest for maximum economic benefits from all form of forest produce and to stimulate the development of appropriate forest industries commensurate with the resource flow, especially in the production of more value-added finished and semi-finished products for local consumption and export, and to create employment opportunities;

(v) to increase the production of non-wood forest products through scientific and sustainable management practices to supplement local demands and the requirements of related industries;

(vi) to undertake and support a comprehensive programme of forestry education and training at all levels in the public and private sectors in order to ensure adequate supply of trained manpower to meet the requirements of the forestry sector, including the forest-based industries;

(vii) to undertake publicity and extension services in order to generate better understanding among the community on the multiple values of forests and to encourage private sector investment in forest development through the establishment of forest plantations on private lands;

(viii) to provide for the conservation of biological diversity and areas with unique species of flora and fauna, including specific areas for the purpose of forestry education and other scientific studies;

(ix) to develop a comprehensive programme in community forestry to cater for the needs of the rural and urban communities and to promote active local community involvement in forestry development projects, including agro-forestry projects; and

(x) to undertake and support intensive research programmes in forestry and forest products aimed at enhancing maximum benefits from the forest.

As each state has its own Forest Enactment and Rules which were adopted in the early 1930's for the administration of its forests, the NFC felt that these forest laws were deficient and weak in areas of forest conservation and management planning and in forest renewal operations which are vital for sustainable forest management. Hence, the National Forestry Act was formulated and was accepted by the NFC in March and later endorsed by the NLC in September, 1984.

This Act, which was passed by the Malaysian Parliament on 17th October in the same year, would enable the effective implementation of the National Forestry Policy as it was formulated to uniformize and update the various State Forest Enactments. However, to further strengthen its provisions to curb illegal encroachment of forest areas and timber theft, the Act was amended in 1993.