Abstract
Although Malaysia is renowned for its tropical rainforest and biodiversity, deforestation for economic development remains contentious. This review analyses Malaysian forest policies, afforestation, and forest carbon payment mechanisms, and makes policy recommendations. It categorises forests by altitude and protection level, highlighting diverse ecosystems. Policies, including the National Forestry Act of 1978 (Amendment 1993), Sabah Forest Policy (2018), and Sarawak Forest Policy (2019), prioritise sustainable management. Agencies shift towards conservation, moving beyond timber‐centric approaches, while revenue streams such as carbon offsetting, payment for ecosystem services, and non‐timber forest products gain traction. Forest connectivity programs protect state‐owned lands from logging, and have increased protected forests since 2005. Government incentives for afforestation and reforestation include tax exemptions. Malaysia commits to REDD+ with forest carbon offset and conservation certificate schemes. A structured implementation approach is proposed, emphasizing the need to understand and communicate market demand for forest carbon offset initiatives.
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