Last week, Prime Minister Ismail Sabri Yaakob said state governments would be compensated for maintaining forests as water catchment areas and protecting them against illegal logging activities.

However, no details have been provided as to how the amount of compensation would be determined.

Andrew Sebastian, the president of the Ecotourism & Conservation Society of Malaysia (ECOMY), welcomed the government’s effort to maintain and protect forest reserves, but said more details were needed.

He told FMT the amount of compensation could be derived from a forest’s “ecological services”.

“If a forest is a water catchment area or a wildlife preserve, then the value should be higher.”

President of the Malaysian Nature Society (MNS) Ahmad Ismail agreed that compensation should depend on a set of criteria.

“We need to come out with calculations based on the types, functions and services of forests, and follow up with policies, laws and action,” he told FMT.

Both Sebastian and Ahmad agreed that a “one size fits all” approach in determining compensation was not practical as different areas and zones had unique features.

“For every hectare that is protected, the states should get a base compensation. If the area is part of a river basin or water catchment, extra compensation should be given,” Sebastian said.

“Protecting the habitats of endangered wildlife should also be a criteria to receive extra compensation.”

Ahmad added: “The cost of forest protection is high but we need to protect forests for the benefit of the current and future generations.”