1

contents
1 Project Summary
2 What Is The Project
2 How The Project Started
4 Why And How Petra Perdana Participated
In The Community Project
5 Extent To Which The Project Integrated Into
The Core Strategy Of Petra Perdana
6 Petra’s HSE Awards & Accolades
9 Project Details
10 Community Project: The Proponents
11 Activities Undertaken
13 Next Phase Of Implementation Activities
front cover 14 Related Implementation Activities
15 How The Company Tackled Some Of The Challenges
Miraturque nihil nisi And Difficulties In Implementing The Community Project
quod Libitina sacravit 17 How The Project Evolved And What Were The Motivations Behind It
urgia finis, Est vetus 18 What Were The Outcomes/Benefits?
atque probus, centum 18 Why Petra Pperdana’s Community Project Is Different From Others
qui perficit annos. Quid, 19 Conclusion
qui atque probus,
20 Appendices
centum qui
• Fact Sheet
• Quality Policy Statement
• HSE Policy Statement
• Newspaper Clippings
• Appreciation letter from Menteri Besar Terengganu
project
summary
Petra Perdana Berhad’s (“Petra Perdana” or
“company”) involvement in the ‘Mangrove
Regeneration Community Project’ (“community
project”) together with the United Nations
Development Programme (“UNDP”) is a new
achievement and step forward in enhancing
sustainable development practices outside the
company’s business environment.
Conceived in late 2005 and implemented in April
2006, the community project by Petra Perdana is
the company’s ‘first’ corporate social responsibility
(CSR) initiative, which integrates its core strategy on
the Health Safety Environment (HSE) into the
project.
The CSR initiative is also the ‘first’ mangrove
regeneration community project of its type for the
Terengganu State Government and the ‘first’
community-based project for UNDP Malaysia.
In essence, the community project serves to
enhance the quality of life, improve livelihoods and
eradicate poverty of identified communities (Kg.
Fikri, Kg. Saujana and Kg. Gong Batu) located along
the Kg. Pengkalan Gelap coastline in Setiu,
Terengganu through socio-economic activities.
The community project, which was conceived as
an environment conservation project i.e.
preserving the mangrove ecosystem, promoting
bio-diversity and sustaining fishing activity, has
evolved into a new dimension with strong socio-
economic bearing. It now involves the community
& uplifts social welfare.
As the community project progressed, it became
apparent that the scope and opportunities for
socio-economic development increased. This
posed an interesting challenge in terms of
introducing sustainable economic activities that
would generate supplementary income and
eradicate poverty for the local communities.
As such, recommendations have been made by
Petra Perdana and UNDP to include awareness
programmes at local schools, promote eco-
tourism, develop information and business kiosks
and establish a Co-operative to manage the
economic activities. The Terengganu State
Government has endorsed these initiatives and
approved funds for infrastructure development at
the project site.
The community project was also not without
challenges. However, given the foresight, some of
the potential issues were addressed at the onset of
the community project. Challenges, such as the
community’s and State Government’s ‘buy-in’ were
addressed through interactive dialogue sessions,
discussions and awareness & education workshops.
The ‘buy-ins’ were critical in ensuring the success of
the community project. Through interactive
communications, the local communities were
focused and were able to understand as well as
provide valuable insights on project logistics and
implementation. Most importantly, they had
become supportive of the community project.
As a result, the implementation activities (e.g.
replanting exercises, nursery set-up) saw strong
support from the local communities and other key
stakeholders. The Terengganu State Government,
on its part, had also given its assurance to gazette
the project site, based on recommendations by
Petra Perdana and UNDP.
Another positive development, as observed from
the on-going implementation activities, was the
strong support and participation by the
womenfolk. Petra Perdana and UNDP are now
exploring new opportunities to promote this
potential under the ‘Women Empowerment’
programme. With structured skills, management
training and guidance, the womenfolk would be
tasked to manage the economic activities of the
community projects through a Co-operative, to be
set-up.
1
 what is
the project?
The project is called PETRA-UNDP Mangrove
Regeneration Community Project (“community
project”).
The community project is designed to promote
sustainability of the local resources and
environment and conserve the mangrove
ecosystem through the regeneration of mangrove
forests as well as help create sustainable livelihoods
for the community.
how the
project started?
The Blueprint
The Government of Malaysia has adopted
mangrove regeneration as a priority Environmental
Policy following the December 2004 tsunami
tragedy. Most of the regeneration efforts are
undertaken by the government on a large scale,
through the Forestry Department, almost
exclusively in the west coast of Peninsular Malaysia
where the livelihood of the communities has been
affected.
2
This would contribute positively towards the
National Biodiversity Policy, whilst ensuring
environmental sustainability.
Equally important, the community project will also
have a positive impact on the livelihoood of the
local communities, thus helping eradicate poverty.
The mangrove regeneration community project
was conceived in late 2005 and initiated in April
2006. It is expected to be completed in mid/late
2008.
The mangrove ecosystem is recognized as the
second most productive ecosystem in the world. It
provides a vital ecological function by trapping
sediments such as organic matters and
transforming them into nutrients that are in turn
used by the different organisms living in the
ecosystem. This supports the continued existence
of the fisheries stock that is utilized by communities
engaging in aquaculture activities.
The mangroves of Terengganu are mostly small and
fragmented and are found in the protected waters
of estuaries and lagoons. Total mangrove area is
about 2,400 ha, amounting 0.4% of the total
mangrove area of Malaysia.
The most extensive mangrove areas are in
Kemaman with total area of 938ha. The district of
Kuala Terengganu has the least amount of
mangroves, due to industrial and other
development projects.
 KUALA
BESUT NERUS
SETIU

KUALA
TERENGGANU

MA
RA
NG
HULU TERENGGANU

DUNGUN

KEMAMAN

TERENGGANU

Community Project: Site Selection
After in-depth study, it was decided that the
community project be located at Kg. Pengkalan
Gelap, Setiu, a coastal estuary in Setiu, about 70km
north of Kuala Terengganu.
The site was selected for two (2) main reasons:
• Petra Perdana’s East Cost maintenance facility
is located at the Kemaman Supply Base,
Terengganu. Given its long-term presence
(since 1998) here, there was a ‘social obligation’
on the part of the company to contribute
towards sustainable development practices in
the State of Terengganu.

• The mangrove ecosystem was in a dilapidated

state. When rehablitated, it would contribute
towards the livelihood of the local
communities through the supply of fish stock.
There would also be opportunities in eco-
tourism to provide supplementary income for
the local communities.

3
 why and how Petra Perdana
participated in the
community
project?

To rationalise Petra Perdana’s

involvement in the CSR
initiative, it is important to
understand the role of Health
Safety Environment (HSE) in the
company’s operating culture
and core strategy

About Petra Perdana
Petra Perdana, which is listed on the Main Board of
Bursa Malaysia Securities Bhd, spearheads the Petra
Perdana Group of Companies. Under the
stewardship of Tengku Dato’ Ibrahim Petra
(Executive Chairman & CEO), the Group provides
offshore marine and integrated brown field services
for the upstream oil and gas industry. With
experience spanning nearly two decades, the
Group has successfully undertaken and completed
various brown field projects for oil majors like
ExxonMobil Exploration & Production Malaysia Inc.,
Talisman Malaysia Limited, Nippon Oil Exploration
(Malaysia) Limited, Sarawak & Sabah Shell,
PETRONAS Carigali and others.
(See Appendix -1, Fact Sheet)
The success of the Group’s engagements with oil
and gas majors is attributed to the following:
- Experienced & competent management team
- High standards of quality assurance & quality
control (See Appendix -2, Quality Policy Statement)
- HSE practices benchmarked against
international standards
- Established track record (since 1988)
- Close proximity of the Group’s service facilities
to oil and gas majors (Kemaman-East Coast,
Peninsula Malaysia, Miri-East Malaysia and
Labuan-East Malaysia)

4
extent to which the
project integrated
into the core strategy of
Petra Perdana
Health Safety Environment (HSE)

The community project is premised on the core

components of HSE, which form part of Petra
Perdana’s core strategy.

HSE is an integral part of the Group’s operating

culture. It is a business process that has been
integrated into all operating levels to ensure the
safety of personnel, equipment and property.

The reason is:

• The Group operates in a high-risk, sometimes

hazardous work environment at onshore and
offshore oil & gas facilities (in Peninsula and
East Malaysia)

• The Group’s operations can impact its

stakeholders i.e. employees, clients, vendors,
local communities and other target groups

The Group also, on a continuity basis, enhances all

HSE practices to ensure sustainability. The Group’s
HSE Policy serves as a guide for continuous
evolvement of all HSE practices in the following
areas (See Appendix -3, HSE Policy Statement):
• Identifying and implementing new HSE
methodologies and technologies
• Promoting HSE culture amongst employees
and 3rd parties (clients, vendors, local
communities)
• Maintaining ‘zero’ incidents, injuries and
accidents at all its work places.
To further emphasize, the Group’s HSE practices are:
• Benchmarked against international standards,
and exceed regulatory requirements
• Audited by oil majors, prior to award of
contracts and during project implementation
• Based on Terms of References of the following
regulations:
- Occupational Safety & Health Act, 1994
- Environmental Quality Act, 1974
- Factories & Machinery Act, 1967
In essence, HSE is an important core
strategy and business process that
ensures sustainability and long-term
growth to benefit stakeholders* in
the environment in which the Group
operates.
* (Stakeholders include employees, shareholders, clients,
financial & investment communities, vendors,
government, regulators, principals/partners and local
communities)

5
 Petra’s
HSE awards
& accolades
For its role in and commitment to HSE, the Group has been accorded numerous awards dating back 2000.

Year Type of Award Awarded By Description

2006 Certificate of Appreciation Sarawak Shell Berhad / For achieving four million manhours
Sabah Shell Petroleum without ‘Lost Time Incident’ for
Company TMMHuC Project

2006 Certificate of Appreciation Sarawak Shell Berhad / For achieving one year Free
Sabah Shell Petroleum ‘Lost Time Incident’
Company

2006 Letter of Appreciation PETRONAS Carigali Early delivery & without compromising
quality standards in fabrication of
select components for the Ledang-
ANOA Dev Project

2006 Certificate of Appreciation PETRONAS LNG & MLNG In recognition of HSE achievement and
Dua contribution for zero ‘Lost Time Injury’
for 2005 / 2006

2006 Congratulatory Plaque Shell Exploration & For achieving One Year without ‘Lost
Production Time Incident’ for the TMMHuC
Contract

2005 Certificate of Appreciation PETRONAS Carigali For a successful and early Samarang
start-up without ‘Lost Time Incident’

2005 Congratulatory Plaque Shell Exploration & For achieving 1 Year & 4 million man
Production hours without ‘Lost Time Incident’

2005 Certificate of Appreciation Shell Exploration & Excellent Healthy, Safety & Environment
Production performance & achieving One Million
Exposure Man Hours without ‘Total
Reportable Case’ Incident for TMMHuC
Project

2005 Certificate of Appreciation Shell Exploration & Excellent Health, Safety &
Production Environmental Performance & achieving
Two Million manhours without
‘Recordable Injurious Incident’ for
TMMHuC Project

2005 Contractors Safety ExxonMobil Contractors Safety Recognition “Grand

Recognition "Gold Award" Award” for Safety Excellence

2005 Award PETRONAS Carigali For achieving 2.3 million manhours

without ‘Lost Time Injury’ for the
Yetagun Phase III Project

2004 Letter of Appreciation Sarawak Shell Bhd In achieving Excellent Safety record of
5865 manhours without ‘Lost Time
Incident’

6
Year Type of Award Awarded By Description

2004 Grand Award ExxonMobil Contractors Safety Recognition for

Safety Excellence in 2004

2004 Certificate of Appreciation PETRONAS Carigali Plant shutdown at PMO Offshore

Platforms & Onshore Terminal during
Shutdown without ‘Lost Time Incident’

2003 Congratulatory Plaque PETRONAS Penapisan For Achieving 7 Million Safe Manhours
Melaka without ‘Lost Time Injury’

2002 Gold Award PETRONAS Carigali In recognition of Excellent Health,

Safety & Environment achievement

2003 Gold Award ExxonMobil. In recognition of Excellent Safety

Performance with zero ‘Lost Time
Injury’ & zero ‘Total Reportable
Incident’ in the Retrofits Project (2002)

2002 Congratulatory Plaque PETRONAS Penapisan For achieving 3 million manhours

Melaka & Malaysian without ‘Lost Time Injury’
Refining Company

2002 Plaque PETRONAS Carigali & For successful completion of ANGSI

ExxonMobil Phases I & II Project

2001 Congratulatory Award PETRONAS Penapisan For achieving 2 million safe manhours
Melaka & Malaysian without ‘Lost Time Injury
Refining Company

2001 Letter of Appreciation Sarawak Shell Achieving one year without “Lost Time
Injury” for Bintulu Plant

2001 Letter of Appreciation Sarawak Shell Bhd. Exceptional Healthy, Safety &
Environment performance & helping
achieve 16 years without ‘Lost Time
Incident’ (Bintulu project)

2001 Certificate ExxonMobil Free ‘Lost Time Injury’ for consolidated

engineering and construction services

2000 Award PETRONAS Penapisan For achieving Zero ‘Lost Time Accident’
Melaka in the PPSR 2 Phase 3 Turnaround in
October 2000

2000 Award Malaysia LNG Sdn Bhd In commemoration of 10 Million

manhours worked without
‘Lost Time Injury’

7
 Petra Perdana’s Criteria for Participation
In essence, the HSE component was the basis and
criteria for Petra Perdana’s participation in the
community project. All of the company’s CSR
initiatives shall display/promote one or more of the
following criteria:
• Health
– Promoting Health in a sustainable
manner
• Safety
– Promoting Safety in a sustainable manner
• Environment
– Preserving the Environment in a
sustainable manner
(Note: Environment is universal. It may be represented in its
ecological or business perspectives)
The community project fulfils Petra’s HSE Criteria. It
will enhance the mangrove ecosystem in that it
will:
• Serve as natural trapping and purification
zone for water-borne pollution, thus removing
Health hazards
8
• Provide a Safety ‘net’ by absorbing the
onslaughts of the Northeast monsoon, thus
minimizing damage to property and
livelihood
• Promote biodiversity, whilst eliminating soil
erosion and providing an ecologically stable
and sustainable Environment
Apart from fulfilling Petra’s HSE Criteria, the
community project will also have a positive impact
on the wellfare and socio-economic aspects. This
includes:
• Opportunities to help generate
supplementary income for the local
communities through a series of ‘pro-business’
activities
• Helping the womenfolk of the community
project play a more proactive role through the
introduction of a ‘Women Empowerment’
programme.
project
details

Project Partners & Support Organisations

The initiators and promoters of the community

project are Petra Perdana and UNDP. The PETRA-
UNDP collaboration was conceived in an effort to
establish strong cooperation with the Terengganu
State Government and Setiu District Office in Site Assessment & Mangrove Species
expediting the bureaucratic processes involved
and facilitating ground level support of the
After a thorough assessment of suitable sites for
community project.
the community project in Setiu, Terengganu by all
stakeholders involved i.e. UNDP, Petra Perdana,
UNDP is the United Nations' global development
Terengganu State Government, Setiu District Office,
network, advocating for change and connecting
representatives of the local communities and UMT,
countries to knowledge, experience and resources
an eight (8) hectre site in Kg Pengkalan Gelap, Setiu
to build a better life. UNDP has a presence and
in Terengganu was selected.
track-record in supporting national development
efforts in more than 160 countries. Its current
The community project will
priority is to help all countries achieve the
entail the planting of the
Millennium Development Goals (MDGs) by 2015.
mangrove species Rhizophora
UNDP Malaysia is a able to conceive a community
apiculata, commonly known
development project based on its knowledge and
as Bakau Minyak and will
expertise to build capacity in sustainable
involve about 150 families
development.
from three main villages: Kg.
Fikri, Kg. Saujana and Kg. Gong
Today, the PETRA-UNDP collaboration enjoys the
Batu.
support of its other partners, namely the
Terengganu State Government and UMT.

Universiti Malaysia Terengganu (UMT, formerly Kolej
Universiti Sains & Teknologi Malaysia) was invited to
provide consultancy and technical support. UMT is
currently involved at the advisory capacity for all
stages of project implementation.
The Beneficiaries – Local Community
About 150 families from three (3) main villages Kg.
Fikri, Kg. Saujana and Kg. Gong Batu are involved in
the project and are expected to benefit from the
long-term benefits of the community project.

Community Project Funding As the project is very much interactive and

community-driven, all dialogue and consultations
involved the representatives of the three (3) main
The community project enjoys financial support
villages and the Setiu District Office.
from various organizations. Apart from the initial
funds (seed money) of RM200,000 from Petra
Perdana, the UNDP also contributed USD25,000. As
the project progressed, the Terengganu State
Government had approved funds of RM500,000 for
infrastructure development at the site.
9
 community project:
the proponents

The community project includes the sustainable use and

production of the mangrove ecosystem resources; preliminary
assessment; implementation of awareness and education
programmes; mangrove forest restoration and the
development of a management plan. As the community
project progressed, there were also opportunities for ‘pro-
business’ initiatives to be explored.

Awareness and Education Programme • Sustainable Utilisation and Production

The awareness and education programme was
drawn up to instill knowledge and enhance
understanding of the mangrove ecosystem at all
levels of local government and local communities.
This will in turn empower and enable the local
government and local communities to contribute
towards the management of this ecosystem.
The programme will highlight the benefits and
values of mangrove ecosystems, the services they
provide and the benefits of a sustainable approach
to development through seminars, workshop, field
visits, youth camps and the media.
Development of a Management Plan
In addition to the restoration of the mangrove
ecosystem, the community project included
sustainable use and production of mangrove
ecosystem resources. The aim is to diversify
income sources and improve the financial
security of local communities. In addition to
the existing economic activity of fishing, other
economic activities can be explored and
developed, including eco-tourism and small
cottage industries.

Mangrove Forest Restoration (Replanting)
A programme was developed for mangrove
restoration based on the conditions of the
mangrove forests as identified in the preliminary
study. The communities in the area will be included
to restore the ecosystem and to monitor progress.
The community project will indirectly seek to
provide the local communities, the Terengganu
State Government and the Setiu district office an
avenue to dialogue and to participate in the
management planning process of the mangrove
ecosystem. Through this intervention, the local
communities will be able to communicate with the
local planning authorities, which will in turn
contribute to a sustainable management of the
mangrove ecosystem in the future.

10
activities
undertaken
Launch of the Community Project
The community project was officially launched by
YAB Dato’ Seri Idris Jusoh, Menteri Besar of
Terengganu on 9 April 2006. Following the launch, a
tour of the mini exhibition was conducted. The mini
exhibition displayed various mangrove produce
from ecosystem and handycraft items. The Menteri
Besar ‘planted’ the first mangrove sapling to signify
the launch.
Awareness and Education Programme
Apart from workshops and on-going dialogues,
presentations were also made to various
organisations to create greater awareness of the
community project.
• National Awareness
At the national level, the community project
has been gaining the support and recognition
of the Economic Planning Unit, Securities
Commission (SC) and Institut Integriti Malaysia
(IIM). A presentation on the Petra-UNDP
community project was made during the
UNDP-SC conference on CSR in 2006. The IIM
also highlighted the community project in its
recent publication, “Corporate Social
Responsibility – Our First Look,” on 29 May 2007.
• Workshops and Training Sessions
A series of workshops and training sessions
were conducted involving more than 80
members of the local community and
Jawatan Kuasa Kecil (JKK). The workshops were
designed to create better understanding of
the importance and long-term benefits of
sustainable development practices in the
mangrove ecosystem as well as building
capacity to implement nursery, replanting and
monitoring the integrity of ecosystem in the
area. The workshops also taught participants
on the techniques of planting mangrove
saplings.
The representatives of the local communities
were also brought on study visits to Penang to
obtain a better understanding of the
mangrove regeneration activities undertaken
by the Penang Inshore Fishermen Welfare
Association.
11
 • On-going Dialogue Sessions

On-going dialogue sessions between all the

stakeholders (UNDP, Petra, Terengganu State
Government, UMT and local communities)
were held to address issues as well as
streamline the direction on the ‘way forward’.
The dialogue sessions will be an on-going
initiative.

Mangrove Forest Restoration (Replanting)

Under mangrove forest restoration, nursery setup

and replanting exercises were undertaken.
• Replanting Exercises
• Nursery Set-up
Since the launch, three (3) replanting activities
To ensure a constant supply of healthy involving the local communities, Petra
saplings for the on-going mangrove Perdana and staff, UNDP, State Government
replanting exercises, a nursery for the and Setiu District Office were held.
mangrove saplings was set-up at the site. Approximately 3,000 mangrove saplings have
Supervised by UMT, plans are also underway been planted to-date.
to increase the capacity of the nursery, whilst
maintaining its financial viability.

The mangrove saplings will also be sold to

other similar projects in the neighbouring
states. The Terengganu Forest Department has
agreed to purchase saplings from the local
communities for its replanting exercise
throughout the state.

12
next phase of
implementaion
activities

Mangrove Forest Restoration (Replanting)

More mangrove forest restoration activities will be

undertaken over the next couple of months. The
target is to re-plant approximately 15,000
mangrove saplings over the next 12 months at the
8 hectre project site.

Gazettement of Project Site

At the present moment, discussions are underway
with the Terengganu State Government to gazette
the project site as a ‘protected area’ to ensure the
livelihood and long-term success of the
community project. The State Government has
given its assurance.
The construction of the kiosks at the project
site will be under the jurisdiction of the
Terengganu State Government and Setiu
District Office with inputs and
recommendations from other stakeholders.
• Eco-tourism Opportunities

The stakeholders are also in discussion with

Management Plan
The stakeholders are also closely working with the
State Forestry Department on the development of
a management plan for the mangrove ecosystem
in the area. This will enable the local communities
and the government agencies to continuously
monitor and sustain the ecosystem, which will help
to protect the productivity of the local’s fishing
farm as well as generate sustainable livelihood for
the people.
‘Pro-business’ Activities
As part of Petra Perdana and UNDP’s efforts to
generate supplementary incomes for the local
communities the following initiatives have been
reccomended and currently in the pipepline. They
include:
• Information/Education & Business Kiosks
Plans are in the pipeline to develop
information/education & business kiosks at
the project site to create greater awareness,
promote eco-tourism and facilitate sale of
mangrove saplings and fisheries products,
harvested from the mangrove vegetation.
major tour operators to bring foreign tourists
to the community project site to gain better
understanding and appreciate the benefits
and value of the mangrove ecosystem. The
visit (by tourists) will also enable them to
participate in the replanting exercises. This
initiative would be undertaken by the Co-
operative, to be set-up.
• Co-operative and Business plan
The Terengganu State Government has
agreed to the proposal to set-up a local Co-
operative to continue the project initiatives in
Setiu District, after the lifespan of this project.
The Co-operative, which will carry out the
recommendations under the business plan for
the sustainable livelihood activities, that is
being developed, will have the Setiu District
Office as its advisor. Some of the areas of focus
would include: sale of consumable fishery,
products from the mangrove ecosystem, sale
of non-consumable fishery by-products (e.g.
handicrafts), sale of mangrove saplings from
the nursery, sale of educational and eco-
tourism products and services.
13
 related
implementaion
activities

Awareness Campaign at Schools Best Pactices

Also in discussion stages is an awareness campaign
for schools around the Kg. Pengkalan Gelap
coastline to promote and instill knowledge and the
importance of the mangrove ecosystem in
contributing towards the livelihood of the local
community.
The project will be working with the Forestry
Department to provide best practises in mangrove
ecosystem management for other similar
communities in Malaysia. This includes receiving
visitors from other local communities as well
developing a publication on the project.

Discussions will be held with the schools’

heads/teachers on securing strong student
participation for the community project. Activities
such as formation of school clubs on
environment/mangrove ecosystem; visits by school
children to the project site; drawing competitions
relating to the mangrove ecosystem and
competition to design the information/ business
kiosks, etc are being looked at.

14
how the company tackled
some of the challenges and
difficulties in implementing
the commmunity project
Some of the challenges faced during the
preliminary and course of implementation of the
community project included:
At the Initial Phase
• Identifying a Suitable Site
Tests had to be conducted to ensure the right
soil composition that suited the Bakau Minyak
mangrove species. After consultations with
the representatives of the local communities,
a suitable site was identified at Pengkalan
Gelap, Setiu, Terengganu.
• Terengganu State Government ‘Buy-in’
To secure the ‘buy-in’ from the Terengganu
State Government, a series of discussions
including presentations (on benefits of the
environment conservation project, identifying
districts for project implementation, funding
requirements, and so forth) were made to the
Steering Committee, which was specifically
set-up to review the community project.
The Steering Committee, headed by the
Director of State Economic Planning Unit,
comprised various state government
departments, government agencies, Petra
Perdana and UNDP. Currently it is proposed
that the Director of the newly set-up
Terengganu Riverine Coastal Authority, lead
this committee.
Recognising its value and impact on the
environment and local community, the State
Government endorsed the community project.
The State Government pledged RM30,000, and
later increased its allocation for infrastructure
development for the community project. The
Terengganu State Government is also
progressing to gazette the site.
• Local Community ‘Buy-in’
Getting the local community buy-in was
critical to the success of the project. As this
was the ‘first’ mangrove regeneration project
in the state and the ‘first’ community-based
project in the east coast of peninsular
Malaysia, there were no yardsticks or
benchmarks.
Following a series of awareness and education
programmes, the local communities and
representatives were not only convinced of
the project but were also encouraged to make
it a success. Today, the project is very much
community-driven.
At the Implementation Phase
• Destruction of Existing Mangrove
Vegetation
Due to the demand for Bakau Minyak in the
building sector, mature trees were often cut-
down by unsuspecting intruders, thus resulting
in the destruction of the mangrove vegetation
at certain sites within the project area.
15
 With on-going awareness and education
workshops, highlighting sustainability issues
and its long-term values, this destruction
eventually diminished and finally ceased.
• Destruction of Saplings by Animals
During the implementation stage (after re-
planting activities) a vast number of saplings
were devoured by animals. Since the project
site is easily accessible by road, animals are
often found wondering into the vicinity of the
project site.
• North-East Monsoon
This issue was highlighted during the series of
dialogues sessions and the issue was resolved
with the erection of fences at certain parts of
the project site that was easily accessible.
Constant Threats
• Residential & Industrial Development
Development activities pose a constant threat
to the mangrove ecosystem. Although the
mangrove ecosystem is intricately designed to
withstand the onslaughts of pollution,
excessive effluents from soil erosion could
destroy its bio-diversity and cause the ecology
of the ecosystem to be disrupted or
destroyed.
16
Although there is very little study on this
threat, every effort is being taken by Petra
Perdana and UNDP and its co-partners of the
community project to ensure that
development does not harm the mangrove
ecosystem of the community project. The
Terengganu State Government recognises this
threat and is mindful of the development
activities at the project site. Development
activities if at all, shall be implemented in a
controlled manner and in strict compliance to
safeguard the mangrove ecosystem.
The periods between November and February
are most sensitive to the community project
as the onslaughts of the North East Monsoon
could lead to destruction of the mangrove
ecosystem. This will be a constant threat until
such time the saplings are about four years
old when they will then be able to withstand
the onslaughts of the drastic weather
conditions.
As such, efforts are underway to ensure that
there is sufficient stock of saplings for
mangrove re-planting activities and the re-
planted saplings are thoroughly reinforced to
minimise destruction.
how the project evolved
and what were the
motivations behind it
Positive Mindsets
Critical to the success of the community project was
the participation of the local communities. It was
encouraging to note that the local communities
took a very keen interest in the project, from the
initial stages. This positive mindset is a strong
motivating factor that would result in the overall
success of the community project. It also sets the
foundation for Petra Perdana and UNDP to introduce
new programmes (‘Pro-business’ activities).
The participation by the representatives of the
three (3) villages at all dialogues and discussions on
site selection, challenges faced, etc. and the
participation of the 150 families in the three (3) re-
planting exercises held to-date, were encouraging.
Given the positive attitude, the Menteri Besar of
Terengganu has requested the project site be
declared a protected area and gazetted. The
process is underway.
The State Government is also using the community
project as a potential tourist attraction where all
activities are implemented with the involvement of
the local community. This initiative fits well with the
poverty reduction policy pursued by the
Terengganu State Government.
In fact, the local communities consider the
community project as a means of restoring the
environment they depend on for their livelihoods,
so that they could continue to use mangrove forest
products whilst benefiting from the ecological
function of the mangrove forest. As such, most of
the activities focus on how to increase the
sustainable livelihood activities of the local
community.
Involvement of Womenfolk
Clearly evident, from the on-going initiatives, is the
passion and commitment by the womenfolk
towards the community project. More than 75% of
the family members of the local community involved
in the awareness and education workshops, nursery
and replanting exercises were women.
Womenfolk in Terengganu have been known to
display strong traits of entrepreneurship. Given the
appropriate skills, marketing and management
training, these women have the capacity to excel in
their areas of discipline. Today, one can see many of
the womenfolk involved in petty trade at market
centres and other SMEs such as in handicraft
centres, food and restaurant business, etc.
This is an encouraging and positive way forward,
and both Petra Perdana and UNDP are of the view
that this shall form the basis to introduce a ‘Women
Empowerment’ progamme. The programme will be
skewed towards economic activities of the
community project.
• Women Empowerment Programme
Under the ‘Women Empowerment’programme,
womenfolk who display strong commitment
and desire in the community project, and those
representing the three villages will be selected
and provided with sufficient skills and
management training. The objective is to
provide them the tools to operate and manage
the Co-operative to be set-up.
The Co-operative will be tasked to manage
the mangrove nursery, fishery produce and
create handicraft items from the mangrove
ecosystem. The Co-operative would also be
responsible for maintaining the eco-tourism
activities.
It is envisaged that the State Government can
then use the ‘model’ Co-operative and emulate
its functions in other parts of the state.
17
 what were the
outcomes/benefits?
The local communities will benefit as the project
will enable them to participate actively in the
conservation and management of the mangrove
ecosystem, which is an integral part of their
community.
The benefits to the community include the
enchancement of their livelihood activities through
fishing, mangrove product extraction and eco-
tourism.
On eco-tourism, the local communities will work
with tour operators to create specialised tours on
mangrove regeneration and preservation.
The Terengganu State Government will benefit
through the increased awareness of the local
communities on the need to sustainably manage
the mangrove ecosystem. This will enable the state
government to better manage these resources
through greater participation from the local
communities.
In addition, the results from the restoration and
community development outcomes can be
considered a “best practice” that can be
incorporated into the State’s planning processes,
and be used as a tool for managing the mangrove
forests in Terengganu. A major policy impact for the
Terengganu State Government is that such projects
can be used as a poverty reduction strategy.
There was also a proposal by the Terengganu State
Government to set-up a living laboratory by UMT
to undertake Reserarch & Development activities at
the site, but this is subject to confirmation.

why Petra Perdana’s community

project is different from others

1
The community project differs from others from three (3) main perspectives:

2
The project involves targeted groups/stakeholders
for more tangible benefit

3
It provides multidimensional perspective on
development – combining environment
conservation and socio-economic development

It creates sustainable long term benefits rather

than a ‘one-off’ benefit or outcome.

18
conclusion
In conclusion, the community project
demonstrates how an environmental conservation
project coupled by socio-economic development
activities can contribute significantly towards
poverty reduction. It should be noted that
although the mangrove regeneration project was
initially conceived as an environmental
conservation project, the issue of poverty
reduction had become a priority item on the
project’s agenda.
The entire work plan for the project was devised
with the participation of the local people and the
outcome of the project is focused on what the
people would like to achieve in the long run. A
committee comprising of the local communities,
the district office and the state government will be
entrusted to manage the project area on both the
conservation aspects as well as the economic
activities.
Through participatory discussions, capacity
building initiatives and direct involvement through
the restoration activities, the local communities will
be empowered to speak and influence the way the
mangrove ecosystem is being managed. This will in
turn provide the local community with a greater
sense of ownership through the active
participation in the decision-making process as
well as the activities that will be carried out on the
ecosystem.
In a nutshell, the PETRA-UNDP partnership has
provided a solution to the Terengganu State
Government to sustainably manage the mangrove
forest in Setiu District, which could lead to a major
Policy impact on poverty reduction. This has led to
both the state and federal government providing
additional funding, especially for infrastructure
development at the project site.
19
 APPENDIX 1
fact sheet
Petra Perdana Group
of Companies
INTRODUCTION
PETRA PERDANA BERHAD (“Petra Perdana”), which
is listed on the Main Board of Bursa Malaysia
Securities Bhd (“Securities Exchange”), provides
offshore marine services for the upstream oil & gas
(O&G) industry. It spearheads the Petra Perdana
Group of Companies (“Group”).
PETRA ENERGY BERHAD (“Petra Energy”), which is
part of the Group and which was recently listed on
the Main Board of the Securities Exchange,
provides integrated brown field services for the
upstream oil and gas industry. Petra Perdana owns
64.62% equity in Petra Energy.
BACKGROUND INFORMATION
Petra Resources Sdn Bhd (“PRSB”) was formed in
1988 to provide a host of services for the upstream
oil and gas industry. In the same year, PRSB became
a licensed vendor to PETRONAS.
Over the years, PRSB systematically developed its
resource capabilities in the brown field sector of
the industry, and successfully secured significant
contracts form ExxonMobil, Talisman Malaysia,
Nippon Oil Malaysia, Sarawak Shell, Sabah Shell and
PETRONAS Carigali.
To support PRSB’s brown field work, Petra
Fabricators Sdn Bhd (“PFSB”) was incorporated in
April 1997. Petra Fabricators is primarily involved in
equipment packaging & fabrication work.
64.62%
Petra Perdana Berhad
Offshore Marine Services
In 1995, Petra Perdana Bhd was incorporated as
part of a strategy to strengthen the Group’s
domestic and regional presence. In 2000, the
company acquired the equity stake of PRSB and
PFSB, and was listed on the 2nd Board of the
Securities Exchange. The company’s listing was
transferred to the Main Board in January 2003.
In 2004, and in line with the continuing growth and
expansion of the upstream oil and gas industry,
Petra Perdana expanded its business profile to
include offshore marine services.
In 2005, Petra Energy Bhd was incorporated and
subsequently assumed equity control of PRSB and
PFSB. The company was listed on the Main Board of
the Securities Exchange in July 2007.
The synergy of the Group’s business activities in
offshore marine, brown field capabilities and
fabrication work augurs well for the long term
growth prospects and has positioned Petra
Perdana as one of the leading integrated service
providers for the upstream oil and gas industry in
the country. This synergy would enable oil majors
to benefit in terms of quicker turnaround,
improved efficiency and competitive pricing.
Expansion into the upstream O&G industry will
undoubtedly be the mainstay of the Group’s
activities, thus enabling the Group to realise its
aspirations as a preferred ‘One-stop’ Integrated
Service Provider for the upstream O&G industry.
Petra Energy Berhad
Integrated Brown Field &
Equipment Packaging &
Fabrication Services
PETRA PERDANA BERHAD Retrofits
• Modification and upgrading of oil and gas
Petra Perdana currently owns and operates 23 facilities and offshore production platforms
marine vessels comprising anchor handling towing (ExxonMobil Exploration Production Inc.)
supply (AHTS) vessels, accommodation & work • Top-side Major Maintenance (Sarawak & Sabah
barges, workboats, platform supply vessels and fast Shell)
crew boats. The vessels are deployed in local,
regional and international waters.
Operations & Maintenance
Under the company’s Fleet Expansion & Renewal • Operations & Maintenance Systems Set-up
programme, the company will continue to acquire (Talisman Malaysia Ltd & Nippon Oil
and dispose vessels to meet its internal and market Exploration (Malaysia) Ltd)
requirements. The company also announced the
acquisition of seventeen (17) new vessels, which
will be delivered over the next one to three years. Oil Field Optimisation
• Full field review - Duyong field (PETRONAS
Carigali)
CORPORATE INFORMATION
(PETRA PERDANA BHD)
CORPORATE INFORMATION
Listing Transfer Main Board, Bursa Malaysia (PETRA ENERGY BHD)
(January 2003)
Lisitng Main Board,
Authorised Capital RM500 million Bursa Malaysia (July 2007)

Issued & Paid-up RM148.8million Authorised Capital RM500 million

Capital
Issued & Paid-up RM97.5million
Incorporated Private Ltd. Co. Capital
(December 1995)
Incorporated Private Ltd. Co.
Converted Public Ltd. Co. (July 1997) (16 December 2005 as
Portfolio Hitech Sdn Bhd and
Previous Listing 2nd Board, Bursa Malaysia changed its name to Petra
(August 2000) Energy Bhd on 1 June 2006)

Converted Public Ltd. Co. (24 July 2006)

PETRA ENERGY BERHAD

Petra Energy provides integrated brown field

services. Some of its significant contracts include:
APPENDIX 2

quality
policy
statement

PETRA PERDANA GROUP OF COMPANIES

QUALITY POLICY STATEMENT

It is the PETRA Perdana Group of Companies’ (“PETRA”) policy on Quality to maintain an
optimum quality system, planned and developed in relation to the management functions, to
ensure that facilities are available to sustain the quality of our products and services. In this
context, the Executive Management’s program for continuous improvement will enable
PETRA to regularly review its performance based on the policy objectives.

Our commitment to Quality is reflected in our objectives to:

• Supply quality parts, components and equipment at internationally competitive prices

• Provide all phases of mechanical engineering work meeting clients’ specifications
• Perform defect-free work at all times
• Understand the full specifications and intended requirements of our clients
• Comply with or exceed the requirements of our clients, if necessary

with particular emphasis on Quality Assurance Standard ISO 9001 Certifications.

PETRA is in the business of manufacturing parts and components for mechanical and
rotating equipment, maintenance, fabrication, construction, design engineering, installation,
testing and commissioning services for the Oil & Gas, Petrochemical and related industries.
The nature of our business requires strong emphasis on expertise, capability, reliability,
safety and quality.

Thus, PETRA is committed to providing services that add value and contribute towards the
success of our clients and business performance.

As part of our commitment, the management shall ensure that the policy on Quality is
understood, implemented and maintained at all levels of business operations within PETRA.

________________________________
YM TENGKU DATO’ IBRAHIM PETRA February 2005
EXECUTIVE CHAIRMAN / CEO
PETRA PERDANA BERHAD (372113-A)

The Petra Perdana Group of Companies is involved in the oil & gas industry, and spearheaded by Petra Perdana Berhad
APPENDIX 3

HSE
policy
statement

PETRA PERDANA GROUP OF COMPANIES

HEALTH, SAFETY & ENVIRONMENT POLICY STATEMENT

It is the PETRA Perdana Group of Companies’ (“PETRA”) Health, Safety and Environment
(HSE) policy to perform work in a manner that protects the health and safety of employees,
contractors and the general public, preserves the quality of the environment, and prevents
damage to property. It is also the policy of Petra Resources Sdn Bhd to comply with the
applicable laws, regulations, industry codes, practices, and PETRA’s policy on HSE.

PETRA has established the following criteria in achieving the policy objectives:

• HSE is prioritised in all of PETRA’s business operations

• The health and safety of PETRA employees, its customers, the public including
environmental conservation issues are critical factors that are taken into consideration in
the planning and execution of all work activities undertaken by PETRA.

• Proactive implementation in identifying, eliminating or minimizing incident and

environmental exposures taking into account technical, practical, social, economic, and
public-policy considerations.

• Accomplishing efficient work processes by ensuring employees are medically fit and
competent through health and medical screening programs; providing adequate
supervision and awareness; training and skill development programs.

• Keeping abreast of developing technologies and processes as well as the statutory and
mandatory requirements on HSE in preventing untoward incidents and upholding the
preservation of the environment.

• HSE is a line management responsibility where all levels of management are

accountable.

• Stewardship of HSE performance and Key Performance Indicators must ensure above
the line compliance.

• Conducting independent audits for verification HSE status and the level of compliance.

• Provide recognition of HSE achievement by employees.

________________________________
YM TENGKU DATO’ IBRAHIM PETRA February 2005
EXECUTIVE CHAIRMAN / CEO
PETRA PERDANA BERHAD (372113-A)

The Petra Perdana Group of Companies is involved in the oil & gas industry, and spearheaded by Petra Perdana Berhad
APPENDIX 4 New Sunday Times - April 11, 2005

newspaper
clippings
 Berita Terengganu Online - April 12, 2006

Berita Harian Online– 12 April, 2006 (Edisi Timur)

Hutan paya laut bakal

destinasi pelancongan
PERMAISURI: Kerajaan negeri memperuntukkan RM30,000 untuk membina kemudahan fizikal menjadikan hutan
paya laut di Kampung Pengkalan Gelap, dekat sini sebagai kawasan terpulihara untuk rekreasi, pendidikan dan
pelancongan.

Malah kerajaan negeri turut mendapat sokongan daripada syarikat pembekal perkhidmatan minyak dan gas
bersepadu, Petra Perdana Bhd (Petra) yang memperuntukkan RM150,000 untuk tujuan itu.

Menteri Besar, Datuk Seri Idris Jusoh, berharap penajaan Petra itu akan menjadi pemangkin kepada sokongan
daripada syarikat korporat dan badan bukan kerajaan.

Beliau berkata, matlamat program tidak akan tercapai dalam masa satu atau dua tahun kerana ia memerlukan usaha
berterusan dalam mendidik masyarakat sekitar serta menjalankan aktiviti penanaman semula spesies paya laut

Katanya, program pemuliharaan hutan paya laut di Setiu khususnya di Kampung Pengkalan Gelap turut mendapat
kerjasama Kolej Universiti Sains dan Teknologi Malaysia (Kustem) serta Program Pembangunan Pertubuhan Bangsa-
Bangsa Bersatu (UNDP).

"Larangan menjalankan aktiviti di kawasan pemuliharaan hutan paya laut akan dilakukan secara berperingkat bagi
memberi kesedaran kepada penduduk tempatan yang mungkin berasakan aktiviti harian mereka terganggu," katanya
selepas melancarkan projek pemuliharaan paya laut di Kampung Pengkalan Gelap, dekat sini, kelmarin.

Hadir sama Pengerusi dan Ketua Pegawai Eksekutif Petra, Tengku Datuk Ibrahim Petra; Rektor Kustem, Profesor
Datuk Dr Sulaiman Mohd Yassin dan Wakil Tetap UNDP di Malaysia, Dr Richard Leete.

Idris berkata program pemuliharaan alam sekitar berkait rapat dengan agenda pembangunan negeri dan ia adalah
sebahagian daripada komponen pengurusan sumber lestari.

Beliau berkata kecantikan alam sekitar juga adalah komponen penting dalam industri pelancongan Terengganu
berteraskan alam semula jadi, tradisi dan warisan.

Katanya, saiz hutan paya laut di Terengganu adalah kecil berbanding di Pantai Barat iaitu hanya berkeluasan 2,000
hektar.

Manakala di Setiu, katanya keluasan hutan paya laut yang masih belum terusik adalah kira-kira 400 hektar dan
tertumpu di sekitar Pulai Che Him, Pulau Besar, Pulau Che Hamid, Pulau Wan Embong, Kampung Penarik,
Kampung Pengkalan Gelap, Kampung Telaga Pandan dan sekitar Lagun Gong Batu.

"Kepentingan hutan paya bakau dapat dilihat daripada terma baru yang digunakan kini iaitu paya laut kerana
kehadiran spesies pokok seperti bakau, api-api, nipah, buta-buta, gelam dan tengar.

"Ia juga menggambarkan hubung kait yang penting antara hutan paya ini sebagai sebahagian ekosistem marin yang
besar.

"Malah sistem hutan paya laut menjadi penyumbang kepada ekonomi masyarakat tempatan melalui aktiviti
penangkapan kerang dan lokan," katanya.

Bagaimanapun, Idris berkata, kawasan paya laut kini semakin susut akibat pembangunan berleluasa dan pembukaan
penempatan baru selain penebangan pokok bakau dan aktiviti ekonomi.

FAKTA
• Projek pemuliharan paya laut membabitkan penanaman spesies bakau `Rhizophora apiculata' atau lebih dikenali
sebagai bakau minyak.
• Keluasan projek - antara dua hingga tiga hektar di Pengkalan Gelap.
• Kampung terbabit - kampung Fikri, Saujana dan Gong Batu
• Fungsi hutan paya laut - turas semulajadi untuk pengaliran sedimen dan nurtien kepada hidupan marin.
The Star - April 13, 2006

New Straits Times - April 22, 2007

 The Edge - June 5, 2006

27
Netvalue 2.0 - September 18, 2006

Malaysia
Creating Sustainable Livelihoods through Community-
Based Mangrove Regeneration Project
Compendium of Good Practices - November 2006
Achieving the Millennium Development Goals
& Reducing Human Poverty1.3
Synopsis
UNDP Malaysia and Petra Perdana Bhd, a locally-
owned company, in partnership with the
Terengganu State Government, has implemented a
community-based mangrove regeneration project in
the state of Terengganu. This project is a good
example of how state governments can embark on
community-led mangrove regeneration which
contributes to both environmental conservation as
well as the creation of sustainable livelihoods. The
Management Plan for the project site was
developed in collaboration with the local
community, local authorities and UNDP.
Objective
To create sustainable livelihoods and conserve the
mangrove ecosystem through the regeneration of
mangrove forests.
Brief Description
The Government of Malaysia has adopted
mangrove regeneration as a priority environmental
policy following the December 2004 tsunami
tragedy. Most of the regeneration efforts are
undertaken by the government on a large scale,
through the Forestry Department, almost
exclusively in the west coast of peninsular Malaysia
where the livelihood of the communities has been
affected.
UNDP Malaysia and Petra Perdana Bhd, a locally-
owned company, in partnership with the State
Government of Terengganu, has implemented a
community-based mangrove regeneration project in
the state of Terengganu. This project is the first
mangrove regeneration project in the state and the
first community-based project in the east coast of
peninsular Malaysia.
The project outputs are: a) Training and capacity
building of local communities on fostering and
sustaining the growth of mangrove forests; b)
Capacity building of local authorities to support
mangrove forest protection; c) Support for
mangrove forest replanting and sustainable
livelihood activities; and d) Developing a
conservation management plan for replanted areas
and the surrounding mangrove ecosystem.
The mangrove ecosystem is recognized as the
second most productive ecosystem in the world. It
provides a vital ecological function by trapping
sediments such as organic matters and transforming
them into nutrients that are in turn used by the
different organisms living in the ecosystem. This
supports the continued existence of the fisheries
stock that is utilized by communities engaging in
aquaculture activities.
The current threats to Terengganu’s mangrove
forests are primarily in the form of development for
residential and industrial purposes, followed by
aquaculture and other related activities. Recent
studies have shown negative impacts on the
livelihoods of the local fishing communities due to
these activities. The Setiu district has been chosen
as the project area, as the mangrove ecosystem
contributes significantly to the livelihoods of the
local communities who rely on the mangroves for
their fish stock. The community project will entail
the planting of the mangrove species Rhizophora
apiculata, commonly known as Bakau Minyak, over
an area of eight hectares in Pengkalan Gelap.
Compendium of Good Practices - November 2006
Around 150 families from three main villages
Kampung Fikri, Saujana and Gong Batu are
involved in the project. The project also includes
the sustainable use and production of the mangrove
ecosystem resources; implementation of awareness
and education programmes to enhance awareness
amongst the communities regarding the importance
of the mangrove ecosystem and the development of
a management plan to enable the local government
and the community to proactively manage the
planning processes. As a result of the project, the
Chief Minister has requested the project area to be
declared a protected area.
The State Government is also using the project area
as a potential tourist attraction where all activities
are implemented with the involvement of the local
community. As one of the poorer states in Malaysia,
this fits well with the poverty reduction policy
pursued by the State Government of Terengganu.
The benefits to the community include the
enhancement of their livelihood activities including
fishing, mangrove forest product extraction, and
eco-tourism.
The Local Communities will benefit as the project
will enable them to participate actively in the
conservation and management of the mangrove
ecosystem, which is an integral part of their
community. Through participatory discussions,
capacity building initiatives and direct involvement
through the restoration activities, the communities
will be empowered to speak and to influence the
way the mangrove ecosystem is being managed by
the local authorities. This will in turn provide the
local community with a greater sense of ownership
through the active involvement in the decision-
making process as well as the activities that will be
carried out on the ecosystem that sustains their
livelihoods.
The local communities are expected to benefit from
eco-tourist activities by working together with tour
operators to create specialised tours on mangrove
regeneration and preservation, as well as to view
the ‘living laboratory’ that is being created by the
College of Science and Technology Malaysia.
The Terengganu State Government will benefit
through the increased awareness of the local
communities on the need to sustainably manage the
mangrove ecosystem. This will enable the state
government to better manage these resources
through greater participation from the local
communities. In addition, the results from the
restoration and community development outcomes
can be considered a “best practice” that can be
incorporated into the State’s planning processes,
and be used as a tool for managing the mangrove
forests in Terengganu. A major policy impact for
the state government is that such projects can be
used as a poverty reduction strategy.
Petra Perdana Bhd and UNDP Partnership: The
Petra Perdana Group of Companies is an integrated
brown field and offshore marine services provider
for the upstream oil and gas industry. PETRA’s
involvement in the community project marks a new
milestone in its drive towards helping develop local
communities, and in protecting the environment.
One of PETRA’s primary objectives in fulfilling its
commitment to the oil and gas industry is to ensure
stringent Health, Safety and Environment practices
of the surroundings where it operates. The
involvement of staff within Petra Perdana Bhd in
the project activities will create opportunities for
building staff capacity on the mangrove ecosystem.
This project will also enhance private sector
partnerships with UNDP on development in
Malaysia, especially linking environment and
poverty in a poor state of Malaysia.
Lessons Learnt and Replicability
This project demonstrates how an environmental
conservation project can contribute significantly
towards poverty reduction. It should be noted that
although the mangrove regeneration project was
initially conceived as an environmental
conservation project, the issue of poverty reduction
had become a priority item on the project’s agenda.
In fact, the local community considers this initiative
as a means of restoring the environment they
depend on for their livelihoods, so that they could
continue to use mangrove forest products whilst
benefiting from the ecological function of the
mangrove forest.
Creative Partnership: It is important to forge
close partnerships at all levels, with multiple
stakeholders including the local community, local
institutions, local government and a private sector
partner as sponsor. Due to the nature of governance
of land in Malaysia, the state government has the
power to decide on the use and development of
land. UNDP with a private sector partnership has
provided a solution to the state government to
sustainably use the mangrove forest in Setiu
District. This has led to both the state and federal
government providing additional funding,
especially for infrastructure.
The entire work plan for the project was devised
with the participation of the local people and the
outcome of the project is focused on what the
people would like to achieve in the long run. As
such, most of the activities focus on how to increase
the sustainable livelihood activities of the local
community. A committee comprising of the local
community, the district office and the state
government is entrusted to manage the project area
on both the conservation aspects as well as the
economic activities.
Replicability: The state government of Terengganu
has requested KUSTEM (College of Science and
Technology Malaysia) to work with the State
Economic Planning Unit to implement a similar
project in at least two other districts in Terengganu
in 2007 and the initial budget allocation has already
been made.
Project Information
Duration
April 2006 – April 2007 (On-going)
CO Focal Point
Hari Ramalu Ragavan, Senior Programme
Manager,UNDP
Malaysiahariramalu.ragavan@undp.org
Partners
Petra Perdana Bhd
College of Science and Technology Malaysia
Terengganu State Government
MYFF Service Lines
Local Poverty Initiatives, Including Microfinance
Conservation and Sustainable Use of
BiodiversityCompendium
Resource Magazine - Petra UNDP Mangrove Project (2006)
Berita Harian - April 28, 2007

New Straits Times – May 26, 2007
EarthWatch:
It isn’t just a swamp thing
The nursery where bakau minyak and bakau kurap saplings
are nurtured is located in front of the mangrove swamp.
Never mind the mud-streaked face, aching back
and a good two hours of baking under the
scorching sun. Some east coast villagers have
never been happier trudging in mud to show
theirplant some faith in the future of mangroves.
NANNY Che Minah Ambak normally cares for
schoolchildren but once a year, she goes to a
different kind of nursery where she wades through
knee-high mud and dirties herself silly.
The last time she did this was on one fine Saturday
morning last month on the coast of Pengkalan
Gelap, Setiu, Terengganu.
Together with some 50 villagers, she engaged in the
backbreaking task of planting mangrove saplings on
an eight-hectare plot of swamp. Hundreds of bakau
minyak and bakau kurap saplings, transferred from
the mangrove nursery, were planted in holes dug a
metre apart in the swamp.
Through word of mouth, 51-year-old Che Minah
had grasped more than a hint of understanding on
how mangroves contribute to the livelihood of the
local community, most of whom are fishermen.
She knew she and the others have been entrusted
with an important role.
The fishermen’s yield from the sea depends
considerably on the mangroves, which are breeding
grounds for juvenile fishes, prawns and crabs, she
said.
Another local, handyman Ahmad Abu Bakar, 49,
added that mangroves prevent erosion of the
shoreline and minimise the onslaught of tsunamis.
Since last year, the villagers at Kampung Saujana,
Kampung Fikri and Kampung Gong Batu in Setiu
had been roped in to participate in a mangrove
regeneration community project.
Where fish and prawn farms used to sit on this
stretch of depleted mangrove forest, the area today
bears signs of a rebirth.
More than 60 villagers planted around 2,000
saplings in June last year and have been monitoring
their progress ever since.
The project was mooted by the United Nations
Development Programme (UNDP), with funds from
oil and gas company Petra Perdana Bhd and
technical assistance from Universiti Malaysia
Terengganu (UMT).
Along the way, the state government lent its
support.
However, it was the locals who took the project to
heart by displaying keen interest and mobilising the
project with their highspirited commitment.
This year, turning up in droves to plant another
batch of saplings, they showed their spirit had not
waned even the slightest.
Returning the sun’s beaming rays with a toothy
grin, Che Minah chatted excitedly about the
villagers’ fruits of labour dotting the vast expanse
of swamp laid before her.
"We started planting at 8am during low tide. It isn’t
as hard as it seems. Actually, it’s a whole lot of fun.
Working with friends takes the chore out of the
task.
Villagers in Setiu, Terengganu, not only engage in the
replanting of mangroves but will continue to monitor and
manage the project site.
"I’m glad to be involved in this meaningful
project," she said.
Judging by the locals’ enthusiasm and technical
know-how, it is hard to imagine that just a little
more than a year ago, this same group was the
biggest sceptics.
Calling the task absurd, futile and a total waste of
time, the villagers laughed off UNDP’s proposal to
regenerate the mangroves nearby.
"Mangroves of all plants! I’d never heard of people
planting mangroves," Ahmad recalled his first
reaction to the idea.
"Many of my neighbours and friends were equally
baffled why mangroves needed replanting."
Weaving through this confusion and trying to
convince the locals to undertake the project were
the UNDP and UMT.
The project’s technical adviser, Associate Professor
Sulong Ibrahim, from UMT, said in order to
convince the locals, awareness programmes and
nursery management workshops were organised.
They also sought the help of the head of the Gong
Batu Village Safety and Development Committee
(JKKK), Abdul Manaf Ahmad, to reach out to the
villagers.
New Straits Times - May 26, 2007
It was not easy persuading them to accept the idea
but a surprising turnaround ensued after an
understanding had been forged.
UNDP’s resident representative for Malaysia,
Singapore and Brunei, Dr Richard Leete, lauded the
locals’ passion and dedication.
"The idea was to build partnership among the
private sector, state government and community.
Eventually, ownership and commitment from the
locals were born out of this partnership.
"This spells the recipe for success. Imagine, if we
had brought in contractors to do the project, it
would have been a one-off job, with no progressive
development," he said.
Indeed, much has been achieved in the past year.
From having to import mangrove saplings from
Kelantan to watching them being eaten up by
wandering goats, the locals have initiated efforts to
collect saplings from local trees and build fencing
around the site.
Next on the list are plans to sell saplings to the
Forestry Department, expand the project site to
12ha, gazette the area, set up an information centre
nearby and a co-operative to manage the mangrove
site.
This is not just any community project where the
locals are roped in to help, said Tengku Ibrahim
Petra, Petra executive chairman and chief executive
officer.
"It’s a project which ensures the long-term
livelihood of the community by incorporating
sustainable development practices.
"From day one, we have tried to engage the locals
beyond a short-term partnership.
Tengku Ibrahim Petra is
happy with the villagers’
commitment to the project.
"It’s important for them to take charge of the
programme. I’m happy they have shown so much
commitment."
More than commitment, faith is what the Setiu
residents have displayed. After all, they will only
see the results of their efforts many years down the
line.
Still, it is a comforting thought to know these
swamp "owners" will continue to replant, protect
and monitor their charges — all for the betterment
of their future livelihood and, of course, nature.
APPENDIX 5

appreciation letter
from Menteri Besar Terengganu