NGOs Call On Malaysia’s Prime Minister To Fix Broken Timber Certification System In New Report

In a letter to Malaysia’s Prime Minister Anwar Ibrahim, NGOs call for urgent reforms of and propose solutions to the broken Malaysian Timber Certification Scheme (MTCS)

(KUALA LUMPUR / MALAYSIA) Today, civil society groups called on Malaysia’s Prime Minister, Anwar Ibrahim, to undertake long-overdue reforms of the Malaysian Timber Certification Scheme (MTCS). Five civil society groups delivered a detailed report to the Prime Minister, highlighting flaws in the MTCS, alongside a letter demanding an immediate overhaul of the system. These NGOs, long-standing advocates for Indigenous communities, emphasized the challenges faced by these communities in the certification process when logging takes place on their lands. The policy analysis highlights critical shortcomings in the MTCS and offers solutions aimed at strengthening environmental protections and safeguarding Indigenous rights.

The report, titled How to Fix Critical Flaws in Malaysia’s Timber Certification System, reveals a troubling lack of independence among auditors, who often rely solely on the companies they are auditing for logistical support during field visits. This dependency is compounded by the fact that companies select which company audits them, and pay their auditors directly. The threshold for non-conformities that lead to a suspension of the certificate is left to the discretion of the auditors, making the process inconsistent. Social standards, particularly ensuring Free, Prior, and Informed Consent (FPIC), are routinely deprioritized during audits.

The report provides four overarching recommendations with specific implementation measures for the Prime Minister Anwar and the Malaysian Timber Certification Council (MTCC): 1) Strengthen certification standards and auditing procedures; 2) Improve independence and accountability of auditors; 3) Enhance FPIC compliance and consultation; and 4) Revamp the complaints mechanism. It also calls on the Prime Minister to improve freedom of information, ensure civil society protections, and codify Indigenous rights into national legislation.

Last year, the Timber Procurement Assessment Committee (TPAC), an independent expert advisory group to the Dutch government, one of the top importers of MTCS timber, also released a report identifying possible failures of oversight, transparency, and consultation standards under the Dutch timber procurement policy. Following TPAC’s report and several civil society complaints submitted to the Netherlands, the Dutch government requested that the Programme for the Endorsement of Forest Certification (PEFC) begin an investigation into MTCS.

Globally, forest-related certification schemes are under increasing pressure to improve their implementation and strengthen due diligence processes in order to align with the European Union’s Deforestation Regulation (EUDR). Later this week, on September 12th, the Joint Task Force between Malaysia, Indonesia, and the European Union on EUDR implementation is set to meet in Brussels. Civil society groups have been promised participation in the task force.

PRESS RELEASE by RimbaWatch, SAVE Rivers, KERUAN, Bruno Manser Fonds, The Borneo Project
10 September 2024

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