CHAPTER 5

Management of Natural
Resources
What are Natural Resources?
• The Earth
• Water
• Air
• Heat
• Flora and Fauna
• Minerals e.g. coal, petroleum, natural gas, gold.
Cont’d
• Mobile resources:
• Water
• Air
• Fish
• Renewable resources:
• Fisheries
• Forests
• Poor management of renewable resources may result in their
exploitation rather than conservation.
Cont’d
• Non renewable resources:
• Oil, coal, gold, bauxite etc. As they are used up their supply will
eventually run out.
1. Ways of Managing Resources:
• Preservation-keeping the resource in its current natural state.
• Conservation- will be used by human while at the same time
being maintained in the longer term
• Exploitation-the use of resources without regard to its
maintenance in the long term.
Cont’d
• Reasons for and consequences of each type of
management are:
• Preservation allows natural ecosystems to flourish and helps to
prevent the extinction of various species of flora and fauna.
• Conservation allows human beings to reap the benefits of resource
use while still considering the interests of future generations.
• Exploitation fulfills a goal of short-term economic gain.
Cont’d
2. Sustainable Development and Resources Use
• State governments in Malaysia are responsible for the management
of land and forest (Federal Constitution-List II: State List)
• Under the Federal Constitution both the Federal and State
Governments have jurisdiction over management of river (see the
Federal List or Concurrent List).
3. Legal Framework
• Privately owned resources e.g. soil are controlled by landowners
but is regulated by the State and Federal law.
• Under the Federal Constitution, forest management falls largely
under state, not federal control.
• Section 34A of the EQA 1974 states that all prescribe activities
e.g. mining, power generation, quarries, railways etc. require an
environmental impact assessment (EIA).
Cont’d
4. Management Authorities and Licensing
• Natural resources are managed by a government management
authority establised by the Act of Parliament.
• Some states have passed their own laws to regulate and
control water supply and management of rivers e.g. the
Selangor Water Management Board.
• The main federal body that manage the environment is the
Department of Environment (DOE) formed under the
Environmental Quality Act 1974.
Major Natural Resources
1. Mineral and Petroleum
• Petroleum and natural gas form an important part of Malaysia’s
energy production
• Found in the seabed in the South China sea.
• According to section 40 of the National Land Code, the
government when granting land withhold the rights to minerals
on or under the land.
• Mining industry provide jobs and revenue to the government.
Cont’d
2. Water
• Water resource management involves fresh water and salt water.
• Fresh water is essential for drinking water and domestic use, for
agricultural activity etc.
• The oceans provide food and sustain an enormous number of
species of flora and fauna.
• Water resources are also a major focus for recreational activities
and are very important for tourism industry e.g Pulau Sipadan,
Pangkor etc.
• Wetlands are very sensitive environments which are important for
the health, survival and continuation of the surrounding areas.
Flaws in River Management Laws
a. Constitutional Limitation on river management
• Both Federal and State legislature have jurisdiction over matter relating to
water.
• Water supplies, rivers and canals, except those wholly within one state come
within the Federal list.
• However, the State list also includes the management of water supplies,
rivers and canals, control of silt and riparian rights.
• Drainage and irrigation are under the concurrent list which come under the
State and Federal competence.
• Matters relating to land and forest come exclusively under the State.
• Decisions over land-use in a State are in the hands of the State government.
• Licensing of business/industrial areas is within the purview of the local
government.
• Pollution control is in the hands of the DOE and it has no control over the
licensing of industrial activities.
• Sand mining comes under the jurisdiction of the State (Land Office). And this
has considerable impacts.
Cont’d
• The Drainage and Irrigation Department (DID) (federal
agency) is given the administrative task of taking care of
the rivers but legally, it does not have the jurisdiction and
control over management of rivers.
• Water including water supplies, rivers and canals, control
of silt and riparian rights are all under the State list.
• The Water Act provides that the ‘entire property in and
control of all rivers in any States is solely vested on the
Rulers.’
Cont’d
• The Water Act 1920 was designed to prohibit certain
activities affecting rivers, such as diversion of water from
rivers, pollution of rivers and damage to riverbanks.
• It does however, allow for the interferences of the river
with approvals or licenses from the State Authority.
• To what extent the Water Act has been enforced
effectively remains doubtful.
Cont’d.
• The National Forestry Act 1984 applies to all states in the
peninsular Malaysia.
• It comes under the jurisdiction of the State authority. The State
authority can designate permanent forest reserved for several
purposes including soil protection, flood control and water
catchment areas.
• The Land Conservation Act 1960.
• Enacted for the conservation of the hill land and protection of the
soil. Only applies in Peninsular Malaysia. Despite this, there have
been degazetting of hill land for various developments.
Cont’d
• Major activity that impairs the quality of rivers, is that of
sand mining. Licenses are issued by the Land Office that
comes under the State government. Only large scale sand
mining operations require EIA.
• State governments have overwhelming powers over the
management and protection of rivers. Yet States continue
to neglect their duties in enforcing the laws.
Cont’d
b. Jurisdictions that regulate activity along the
waterway
• No single authority overseeing the management of water
resources.
• There are agencies both at Federal and State levels that carry
out the task in river management.
• The local authorities and the State governments do not have
the technical expertise but they are vested with powers in the
utilisation of rivers.
• Yet the Department of Irrigation and Drainage and the DOE are
not given the power that comes under their technical expertise.
Cont’d
B. Fisheries Management
• There are many examples of species of fish being fished to commercial
extinction because of poor management e.g. the slaughter of humpback
whales off Australia’s east and west coasts and the southern blue-fin tuna
harvest.
• In Malaysia, the Department of Fisheries is responsible for the
development of the fisheries industry in the country under the Fisheries Act
1985.
• The National Agriculture Policy which is the thrust for increasing food fish
production, centers on the development of deep sea fisheries and
sustainable aquaculture while maintaining the production form coastal
capture fisheries.
• According to section 27 of the Fisheries Act 1985, Dugong is a protected
aquatic animal. Penalty for keeping the animal without permission from the
Fisheries Department is a fine up to RM5,000 or sentenced to a year’s jail
or both. It is also protected under the Wildlife Conservation Act 2010.
 Cont’d
3. Wild Animals
• According to WWF wildlife trade is big business, worth billions of
dollars and involving hundreds of millions of wild plants and animals
from tens of thousands of species.
• No country is untouched from this immoral activity. Not even
Malaysia.
• For example, some 88 million wild orchids, 6.2 million wild-caught live
birds, and 7.5 million live caught reptiles were traded globally
between 1996 and 2001.
• However, illegal wildlife trafficking is not regarded as mainstream
crime.
• According to Global Financial Integrity (GFI), wildlife trafficking
generates an estimated US$5 to $23 billion in revenues each year.
• Malaysia is a major global hub of wildlife trafficking with the body
parts of endangered animals coming into and out of the country with
depressing regularity.
cont‘d
• In 2012, airport authorities in Wellington, New Zealand,
caught a smuggler, a German citizen with 44 endangered
live skinks and geckos, all stuffed into his underwear.
• Why would anyone want to stuff reptiles into his
underwear? Because the geckos would have worth
US$2,800 apiece to European collectors.
Geckos
Source: Clean Malaysia
Cont’d
• A pair of Queen Alexandra’s Birdwings –the world’s
largest butterflies, with wingspans of up to 14 inches-sells
for about USD10,000.
• A baby chimpanzee goes for as much as US$50,000.
• Black market isn’t just for cute critters. In March 2009,
New York officials broke up a huge smuggling ring that
specialized in snapping turtles, rattlesnakes, and
salamanders.
Cont’d
Cont’d
Cont’d
• TRAFFIC-the wildlife trade monitoring network is the
leading non-governmental organisation working globally
on trade in wild animals and plants in the context of both
biodiversity conservation and sustainable developments.
• Established in 1976 and a headquarters office in the UK
which operates as a registered charity.
Multilateral Environmental Agreements
• The big five Multilateral Environmental Agreements
related to wildlife are:
• the Conventional on International Trade in Endangered Species of
Wild Fauna and Flora (CITES) 1975;
• the Convention on Migratory Species (CMS) 1979;
• the Convention on Biological Diversity (CBD) 1992; and
• the Ramsar Convention 1971: and
• the World Heritage Convention 1972.
Cont’d
1. The Convention on International Trade in Endangered
Species of Wild Fauna and Flora (CITES) 1975 regulates
international trade in more than 30,000 species of plants and animals
through a system of certificates and permits.
• This system has been hugely successful: for example; by banning international
trade in rhino horn when rhino numbers plummeted due to demand for their
horn, the convention has helped to ensure that rhinos continue to survive in
the wild.
2. Convention on Biological Diversity 1992 (CBD)
• It deals with conservation of biological diversity and promotes development
that did not contribute to the continued deterioration of the environment.
• The three agreements that were adopted covering:
• a global action plan of sustainable development (Agenda 21),
• principles outlining the rights and responsibilities of states (Rio Declaration on
Environment and Development); and
• standards for sustainable forest management (Statement of Forest Principles).
Shortcomings
• Compliance control in CITES is a complex matter: The trade
concerns relations between sovereign states imposes limitations on
the ability of the Convention to act in a policing role. Although
CITES is legally binding on States it is generally not self-executing.
• It contains no internal implementation or enforcement mechanism which
automatically establishes enforcement infrastructures, management
authorities, or penalties within the countries acceding to the treaty. This means
that it cannot be fully implemented until specific domestic measures have been
adopted for the purpose.
• It is therefore absolutely essential that CITES Parties have legislation in place
allowing them to implement and enforce all aspects of the Convention.
• Although nearly all states in the world quickly ratified the CBD, most
of its obligations are in legal terms, diminished by the qualification
that they be fulfilled “as far as possible and as appropriate.”
• The Convention lacks effective compliance mechanisms.
Pretty oriental girl or wildlife body parts?
Actions taken at the National Level
• Malaysia is known of its breathtaking landscape, unique
cultural history and diverse flora and fauna.
• It is one of the most biodiverse places on the planet. According to
the National Biodiversity Index , it’s ranked twelfth in the world for
country richness in diversity of both animals and plants. It is the
home to the Taman Negara, the world’s oldest forest-estimated to
be more than 130 million years of age-and countless other natural
treasures.

• Sadly like all other ASEAN’s countries, Malaysia also has a history
of deforestation, exploitation and species extinction.
The Wildlife Conservation Act 2010

• Before 2010 Act, penalties for offenses including poaching and

illegal wildlife trading were ‘nothing more than a slap on the wrist.’
• Plants and animals were relying on a law passed in1972
(Protection of Wildlife Act 1972)
• The law didn’t authorise Malaysia’s wildlife enforcement division,
called PERHILITAN, to arrest traffickers and poachers unless they
were caught red-handed.
Cont’d
• Now things are different after the introduction of the
Conservation of the Wildlife Act 2010
• PERHILITAN was given more manpower
• Reinforced vigilance at 13 checkpoints on suspected trafficking
routes, and established an integrated enforcement task force
combining the Malaysian military, police, customs and airport
security.
• Poachers and smugglers of endangered species now face
punishment by a fine of RM500,000 (US$120,000) and mandatory
imprisonment of up to 5 years.
Cont’d
• The Wildlife Conservation Act (WCA) meets Malaysia’s
obligation under CITES. It is one of the country’s most
significant wildlife laws. The First Schedule is a list of protected
wildlife (includes CITES Appendix II species); and the Second
Schedule is a list of totally protected wildlife (includes CITES
Appendix 1 species).
• It regulates movements of animals, plants and products to and
from Malaysia. The Act helps to protect the environment from
risks associated with the international movement of wildlife.
• Under this Act, it is prohibited to hunt, keep any protected
wildlife, take or keep any part or derivative, collect bird nests,
conduct trade or taxidermy business, or import, export or re-
export any wildlife, part or derivative unless licence.
Cont’d
• WCA also carries out CITES obligations where for totally protected wildlife,
unless a special permit is held it is prohibited to hunt or keep any wildlife; take or
keep any part or derivative; import, export or re-export any wildlife, part of
derivative; hunt during the closed season; conduct research; or use in
commercial operation (zoo, circus, captive breeding, etc).
• Schedule 6 identifies 10 protected species that are permitted to be hunted by
Aborigines for sustenance purposes (but may not be sold, exchanged for food or
other gain).
• Sections 60-88 describe an extensive range of offences and penalties for both
protected and totally protected wildlife, applicable to individuals and legal entities.
• The highest maximum prison sentence under this Act is 10 years’ imprisonment
for certain hunting or keeping female totally protected wildlife species without a
special permit, under section 70(1). The highest maximum fine is RM 500,000
which can be applied for several offences relating to hunting or keeping specific
species of totally protected wildlife without a special permit (sections 68(2c),
69(2) and 70(2).
Cont’d
• The list of protected species is far longer than it used to
be, and regulations cover hunting, fishing, capturing
wildlife, and – an especially -important addition-animal
cruelty.
• Easier to arrest offenders e.g. suspects caught with
snares and other hunting equipment are now presumed to
be using them illegally unless proven otherwise.
Cont’d
• This Act (under Section 20) empowers all enforcement
officers to exercise all or any of the special powers of
investigation that are afforded to police under the Criminal
Procedure Code, including the power to require
attendance of witnesses for question/examination, search,
and seizure without warrant, access to computerized data,
and interception of communications (with authorization
from Public Prosecutor, and information may be
admissible as evidence in court).
Cont’d

National Forestry Act 1984 (Act

313)
• This law provides for the administration, management, and conservation of
forests and forestry development, and applies throughout all states in
Peninsular Malaysia, and the Federal Territories of Kuala Lumpur and
Labuan. It applies to individuals and to legal entities (section 109).
• Beside taking and illegally removing forest products without licence/permit,
the offences under this Act also include hunting, shooting, trapping, snaring;
unlawful possession of forest products. The law provides powers of search
and arrest with or without a warrant, as well as the powers of investigation,
seizure and forfeiture for officers of the police or forestry departments, in
seizable offences (offences/cases where an officer may arrest without a
warrant), Assistant District Forest Officers or Police Sergeants or officers of
higher rank may exercise special powers for police as allocated under the
Criminal Procedure Code.
Cont’d

Customs Act 1967 (Act 235)

• The Customs Act 1967 provides customs officers with full powers of inspection,
investigation, search, seizure and arrest, and of prosecution with approval from the
Public Prosecutor. Section 108 enables customs officers to conduct searches
without warrants.
• Under section 111B, to support the investigation of offences, custom officers may
have access to any recorded information or computerized data, whether stored in a
computer or otherwise. Section 119 states that the burden of proof lies with the
defendant in cases of prosecution.
• Sections 133 to 141 contains provisions relating to offences and penalties which
includes penalties for falsifying documents, various smuggling offences, and offering
or receiving bribes. According to section 123, for a first offence, penalties for
smuggling of prohibited goods start from 10 times the value of the goods or 50,000
ringgit (whichever is the lesser amount), up to a maximum of not more than 20 times
the value of the goods or 100,000 ringgit (whichever is the greater amount), or
imprisonment for a term not exceeding three years, or both. Imprisonment is
allowed for non-payment of fines under this Act, up to six years.
Cont’d
• Criminal Procedure Code (Act 593)
• The Criminal Procedure Code (CPC) is a very comprehensive law
on criminal law. Sections 109-116c contain provisions on police
powers for investigation relating to “seizable” offences
(offences/cases where a police officer may arrest without a
warrant).
• These provisions include the power to require attendance of
witnesses for questioning/examination, search and seizure without
warrant, access to computerized data, and interception of
communications (with authorization from Public Prosecutor, and
information may be admissible as evidence in court).
Cont’d
Penal Code (Act 574)
• The Penal Code is particularly well suited for prosecuting wildlife traffickers. It
contains several provisions capable of being used to punish the illegal trade in
wildlife.
• Under the Penal Code, relevant offences in the context of illegal trade in
wildlife include those relating to organized crime listed under sections 130U to
130 ZC and corruption by public officers under section 161 to 164.
• According to section 130u, organised criminal group is defined as a group of
two or more persons, acting in concert with the aim of committing one or more
serious offences in order to obtain, directly or indirectly, a material benefit,
power or influence. Under section 130zc, the punishment for any organized
criminal group or a member of an organized criminal group is imprisonment for
a term of twice as long as the maximum term for which he would have been
liable on conviction and shall also be liable to whipping. Under section 161, the
punishment for corrupt public servant is an imprisonment for a term of three
years or with fine or with both.
Limitation of National Law

• Legal Issues
• As illegal wildlife trade is a criminal offence. Criminal law consists
of rules and principles regarding liability, general defences, burden
of proof and penalties.
• It also involves rules regarding choice of court, witnesses, data
collection, handling and presentation of evidence, and other
procedural aspects as provided under the CPC.
• The prosecutor must also prove culpable mental state, or mens rea
that is he or she must show that the accused actually intended the
outcome of the unlawful conduct.
• In wildlife crime proving mens rea will therefore usually be the
requirement. It has been argued that this can be difficult, as it is
impossible to get in someone’s mind and show what they were
actually thinking.
Cont’d
• Jurisdictional Issues
• There has been an ongoing tense relation between the Federal government
and the States of Sabah and Sarawak concerning environmental regulation.
• Under Malaysia’s federal system of government, environmental regulations
derive from both the Federal government and the State Parliaments. The
Federal Constitution makes no specific reference to the environment. This
has been the subject of considerable controversy as far as Federal-State
relations concerning environmental regulation.
• In relation to Federal legislation, the States of Sabah and Sarawak in
Malaysia has legislation administered by a State department, which
licenses domestic activities involving wildlife, with penalties for conducting
activities without official authorization. Variations in legislation between
jurisdiction, differences in licensing systems and enforcement practices
create problems for overall monitoring of illegal activity and enforcement
within Malaysia.
Cont’d
• Enforcement Agencies
• It has been argued that the agencies in charge of the enforcement of
environmental law are lacking of training and experience in advanced
investigative techniques.
• They are also lacking of formal law enforcement training, poor crime
scene capabilities and they do not proses advance analytical
software.
• The enforcement agencies do not have good informant reward
provisions and some agencies lack of a dedicated wildlife crime
prosecutions section, no dedicated intelligence unit and high reliance
on temporary staff and rangers.
• It has been argued that the RMCD has shown itself to be good at
seizing products, but less effective at converting those seizures into
arrests. The RMP has little or no involvement at all in addressing this
issue.
Cont’d
• Corruption
• As noted wildlife crime represents a much lower-risk and higher
reward opportunity for criminals. The very high profits generated
also enable traffickers to bride lowly paid public officials to reduce
their risks even more.
• Port Klang which is one of the busiest port in Malaysia has been
identified as the destination or point of origin for large, high
valuable wildlife shipments, such as the Hong Kong seizure of 7.2
tonnes of ivory in July 2017 which originated from Port Klang.
• It is certainly an organized network which involved corrupt
government officials because an ordinary person cannot transport
a container of ivory from Malaysia to Hong Kong without being
detected at the point of origin.
References
• Bramwell, B., & Lane, B. (2012), Towards Innovation in Sustainable Tourism
Research? Journal of Sustainable Tourism, 20(1), 1-7.
• Freeland Foundation & ASEAN-Wildlife Enforcement Network, “ASEAN Handbook on
Legal Cooperation to Combat Wildlife Crime,” 2016 p 5
• Liu, C. H., Tzeng, G. H., Lee, M. H., & Lee, P. Y. (2013) Improving Metro-Airport
Connection Srvice for Tourism Development: Uisng Hybrid MCDM Models. Tourism
Management Perspectives, 6, 95-107.
• Norha A Hanifah, ‘A Student Guide: Understanding Environmental Law in Malaysia,’
2019.
• UNEP ‘Emerging Technologies: Smarter Ways to Fight Wildlife Crime,’ UNEP Global
Environmental Alert Service (GEAS), June 2.
• United Nations Office on Drugs and Crime, ‘Criminal Justice Response to Wildlife
Crime in Malaysia: A Rapid Assessment,” UNODC October 2017.
• WWF, ‘Illegal and Unsustainable Wildlife Trade,’ WWF international Avenue du Mont-
Blanc, Switzerland, Special Fact Sheet, 2006. P 1.
• Wyler L., Sheikh, P., 2013 International Illegal Trade in Wildlife: Threats and U.S.
Policy Congressional Research Service. http://www.fas.org/sgp/crs/misc/RL34395.pdf.