FOREST RESEARCH INSTITUTE MALAYSIA ACT 2016

products in the unprocessed or semi-processed form, and include logs, poles, fuelwood, rubberwood, stems and fibres of oil palms and its residues, coconut and other palms, gaharu and other scented wood, gums, damar and oleoresins, wood oils, leaves, rattans, bamboos, seeds, nuts, shoots, roots, mengkuang, medicinal plants, aromatic plants, soils, microorganisms and other similar products of any description whether present or future;

products that have undergone processing or whose forms have been altered, and include sawn timber, charcoal, essential oils, wood chips and wood shavings, ground wood, beadings and mouldings, plywood and veneer, particleboards and fibreboards, blockboards, laminboards and other reconstituted wood-based panel products, wood pulp, paper and paper products, glue-laminated timber, tissue cultured plants, chemical and protein extracts, substances or derivatives for production of pharmaceuticals, neutraceuticals, cosmeceuticals and functional food and other processed or altered products that are derived from the products as specified in paragraph (a); and

products in the finished form, and include attaps, railway and tramway sleepers of wood, furniture, handicrafts and toys of wood, wooden handles of tools, piles, pickets, and stakes of wood, picture frames of wood, packing cases of wood, household utensils of wood, basketwork, wickerwork and other articles of plaiting, pencils and other finished products that are wholly or partially made from the products as specified in paragraph (a) or (b);

“forest-based industries” means all industries engaged in the harvesting, extracting, testing, processing, manufacturing, preservation and seasoning of forest produce, and services related thereto;

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“Institute” means the Forest Research Institute of Malaysia which continues to be in existence and with a change of name in the English language to the “Forest Research Institute Malaysia”

under section 3;

“Director General” means the Director General appointed under section 15;

“Fund” means the Forest Research Institute Malaysia Fund established under section 23;

“Minister” means the Minister charged with the responsibility for forestry;

“forest development” means the management and development policies and activities for all natural and man-made forests based on sound ecological and socio-economic principles for the expressed purposes of both the production of forest produce and the protection of the environment;

“conservation” means safeguarding genetic resources, species and ecosystem diversity, as well as sustainable use of biological resources and its equitable sharing of benefits to meet the needs and aspiration of present and future generations;

“Chairman” means the Chairman of the Institute appointed under paragraph 7(a) and includes any member of the Institute appointed to perform the function of the Chairman under section 10.

The change of name under subsection (1) shall not affect the identity of the Institute or any rights or obligations of the

Institute or render defective any legal proceedings by or against the Institute, and any legal proceedings that might have been continued or commenced by or against it by its former name may be continued or commenced by or against it by its new name.

The Institute shall be a body corporate and have perpetual succession and a common seal, and may sue and be sued in its corporate name.

The provisions of the Schedule shall apply to the Institute.

The Minister may amend the provisions of the Schedule by order published in the Gazette.

Functions of the Institute

to implement policies on research and development programmes to ensure the growth and sustainability of the forest and forest-based industries;

to conduct and promote research on the multiple roles and functions of forests, including watershed, biotechnology, biodiversity and its sustainable use, conservation, ecotourism, greening of areas, effects of pollutants and climate change, appropriate for a rational and holistic approach to the sustainable and environmentally sound forest development;

to promote, stimulate, facilitate, undertake and commercialize research findings in order to develop and utilize effectively such research findings in the interest of development of forest-based industries;

to conduct and promote research on forest development including the production, extraction, processing, storage, transportation and utilization of forest produce, and other fields appropriate to the continued development of the forestry sector and the conservation of the resource base;

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to secure, where the public interest or the interest of forest development and forest-based industries so require, the development and advancement of research findings which appear to the Institute not to have been developed or explored or sufficiently developed or explored;

to control, co-ordinate and monitor the activities of any person undertaking research and development programmes and any other programmes, schemes, projects and activities financed wholly or mainly from the Fund;

to provide technical, advisory, consultancy and any other services in relation to forest and forest-based industries to any government, body or organization within or outside

Malaysia;

to administer and manage the Fund;

to collect, collate and disseminate information relating to research findings, forest development, forest produce and its utilization by way of publishing or sponsoring the publication of periodicals, journals, books, booklets and any other means available;

to provide courses of study and training programmes in the field of forestry or any other related fields, and to take such other actions as may appear necessary or desirable for education;

to act as a testing body and a certification body for forest produce upon being accredited as a conformity assessment body under the Standards of Malaysia Act 1996 [Act 549]

or being accredited by any other accreditation body outside Malaysia;

to liaise, co-ordinate and collaborate with the Federal

Government, any State Government or any body or organization in research and development programmes in the interest of the forest and forest-based industries including being members of any body or organization within and outside Malaysia; and

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to do such other things as the Institute thinks fit to enable it to perform its functions effectively or which are incidental to the performance of its functions.

Powers of the Institute

The powers of the Institute shall include power—

The Institute may delegate any of its powers under this

Act to the Director General of the Institute.

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Branches and research centres of the Institute

The branches or research centres shall be headed by officers appointed by the Director General from amongst the officers appointed under section 17.

The heads of branches or research centres shall be responsible to the Director General and shall perform such duties as may be assigned to them by the Director General.

Membership of the Institute

a Chairman;

a representative of the Ministry responsible for forestry;

a representative of the Treasury;

a representative of the Department or Unit responsible for national socio-economic development;

a representative of the Ministry responsible for plantation and commodities industries;

a representative of the Forestry Department Peninsular

Malaysia;

a representative of the State Government of Sabah;

a representative of the State Government of Sarawak;

a representative of the Malaysian Timber Industry Board;

two representatives of the forest-based industries;

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not more than four persons who have the expertise and experience in finance, business or investment who, in the opinion of the Minister, are able to contribute to the research and development relating to forestry and forest produce commercialization; and

the Director General.

Tenure of office

When attending meetings of the Institute, the alternate member shall for all purposes be deemed to be a member of the

Institute.

An alternate member shall, unless he sooner vacates his office, cease to be an alternate member when the member in respect of whom he is an alternate member resigns or vacates his office.

Temporary exercise of functions of Chairman

Until an appointment under subsection (1) is made or in default of such appointment or in the absence of the Chairman from any meeting of the Institute, the member of the Institute appointed under paragraph 7(b) shall perform the functions of the Chairman.

A member appointed under subsection (1) or a member referred to in subsection (2) shall be deemed to be the Chairman during the period in which he is performing the functions of the

Chairman under this section.

If at any meeting of the Institute, neither the Chairman nor the person exercising the functions of the Chairman is present, the members present shall elect one of their members, other than the Director General, to preside at the meeting.

Directions by Minister

The Minister may, after consultation with the Institute, give such directions of a general character consistent with the provisions of this Act to the Institute and the Institute shall give effect to such directions.

Returns, reports, accounts and information

Without prejudice to the generality of subsection (1), the

Institute shall, as soon as practicable after the end of each financial year, cause to be made and transmitted to the Minister and, if so directed by the Minister, to any other public authority, a report dealing with the activities of the Institute during the preceding financial year and the report shall be in such form and shall contain such information relating to the proceedings and policy of the Institute as the Minister may determine.

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Secretary

The Institute may appoint any person to be a member of any committee established under subsection (1).

A committee established under this section may elect any of its members to be the chairman and may regulate its own procedure and, in the exercise of its powers under this subsection, such committee shall be subject to and act in accordance with any direction given to the committee by the Institute.

Meetings of a committee established under this section shall be held at such times and places as the chairman of the committee may, subject to subsection (3), determine.

A committee may invite any person who is not a member of the committee to attend any meeting of the committee for the purpose of advising it on any matter under discussion but that person is not entitled to vote at the meeting.

Members of a committee or any person invited to attend any meeting of a committee under subsection (5) may be paid such allowances and other expenses as the Institute may determine.

A member of a committee shall hold office for such term as may be specified in his instrument of appointment and is eligible for reappointment.

The appointment of any member of a committee may at any time be revoked by the Institute.

A member of a committee may, at any time, resign his office by written notice addressed to the Chairman of the Institute.

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The Institute shall vest in the Director General such powers and shall impose upon him such duties as the Institute may determine.

The Director General shall be responsible for—

The Director General shall have general control of the officers and servants of the Institute.

The Director General shall perform such further duties as the Institute may direct.

In discharging his duties, the Director General shall act under the general authority and direction of the Institute.

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Appointment of Deputy Director General

If for any reason the Director General is unable to exercise his powers and to perform his duties, the Institute may appoint one of the Deputy Directors General to exercise the powers and to perform the duties of the Director General.

Appointment of officers and servants

No person shall be eligible for employment as an officer or servant of the Institute if he has, directly or indirectly, by himself or his partner, any share or interest in any contract or proposed contract with, for or on behalf of the Institute.

The Institute may, with the approval of the Minister, the

Treasury and the Public Services Department, determine the terms and conditions of service of the officers and servants of the Institute.

Statutory Bodies (Discipline and Surcharge) Act 2000

A delegation under this section shall not preclude the

Director General himself from performing or exercising at any time any of the powers or duties so delegated.

The Fund shall be controlled, maintained and operated by the Institute.

The Fund shall consist of—

paying any expenditure lawfully incurred by the Institute, including—

the allowances and other expenses of the members of the Institute or any of its committees;

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paying any other expenses, costs and expenditure in relation to the procurement of goods and services, including the engagement of consultants, legal fees and costs, and other fees and costs;

financing research and development activities;

providing funds to any body or organization which the

Institute thinks expedient to commission research and development activities, development projects or publicity activities;

contributing to any body or organization within or outside

Malaysia which promotes research and development in forest development and forest-based industries;

financing such scholarships for higher learning, research assistantship, scientist grants, fellowships, medals, prizes and other forms of distinctions, awards or assistance for serving as well as prospective officers and servants of the Institute;

paying any other expenses, costs or expenditure properly incurred or accepted by the Institute in the performance of its functions or the exercise of its powers under this

Act;

meeting the expenses incurred by the Institute in setting up branches or research centres of the Institute;

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purchasing or hiring equipment, machinery and any other materials, acquiring land and erecting buildings, and carrying out any other works or undertakings in the performance of its functions or the exercise of its powers under this Act;

granting loans or providing capital for companies established under section 30;

repaying any moneys borrowed under section 33 and the interest due on such moneys; and

generally, paying any expenses for carrying into effect the provisions of this Act.

Conservation of the Fund

Before the beginning of the month of June of each year, the

Institute shall submit to the Minister an estimate of the expenditure

(including the expenditure for research and development activities and development projects) for the following year in such form and containing such particulars as the Minister may direct.

The Minister shall, before the beginning of the month of

December of that year, notify the Institute of the amount authorized for expenditure generally or of the amounts authorized for each description of expenditure.

The Institute may, at any time, submit to the Minister a supplementary estimate for any one year and the Minister may allow the whole or any part of the additional expenditure included in the supplementary estimate.

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Reserve fund

An order made under subsection (1) shall be published in the Gazette.

Except as may be otherwise provided in an order made under subsection (1), such cess shall be deemed for the purposes of collecting and enforcing the collection thereof to be a customs duty imposed under the Customs Act 1967 [Act 235].

Power to establish companies

to perform any of its functions or exercise any of its powers; or

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to carry out and have the charge, conduct and management of any programme, scheme, project or activity which has been planned or undertaken by the Institute in the performance of its functions or exercise of its powers.

Power to commercialize research findings

For the purpose of subsection (1), the Institute may enter into any arrangement for sharing of profits, union of interest, co-operation, joint-venture or equity participation with any person.

Power to impose fees and charges

The Statutory Bodies (Power to Borrow) Act 1999 [Act 598]

shall apply to the Institute.

Power to invest, etc.

The Institute may deposit, either on deposit account or current account, any moneys for the time being uninvested, in—

the Federal Government, the property in every research finding of such research and development activity shall vest in the Institute; or

any State Government, individual, company, body or organization, the property in every research finding of such research and development activity shall vest in accordance with the agreement between the Institute and the State Government, individual, company, body or organization.

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Where a research and development activity is conducted by an officer or servant of the Institute in the course of his duties, the property in every research finding of such research and development activity shall vest in the Institute.

The Institute may, as it thinks fit, give rewards or incentives to the officer or servant of the Institute referred to in subsection (2).

The Institute may make available any research finding the property of which is vested in the Institute to the Federal

Government or any State Government, individual, company, body or organization subject to such conditions and to the payment of such fees, royalties or other consideration, if any, as the Institute may determine.

Subsection (4) shall be in addition to and not in derogation of the provision of section 31.

Access to research findings and facility, etc.

with the prior written consent of the Director General;

and

in accordance with any terms and conditions as the

Director General may determine.

Any person who contravenes this section commits an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding two years or to both.

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Secrecy

All information obtained by any member of the Institute or any of its committees, or any officer, servant or agent of the Institute in respect of any formula, process or practice in connection with the administration of this Act shall be treated as confidential.

Any person who contravenes this section commits an offence and shall, on conviction, be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding two years or to both.

Restriction on the use of words

Any person who contravenes this section commits an offence and shall, on conviction, be liable to a fine of not less than two hundred thousand ringgit.

Protection against suits and legal proceedings

against the Institute; or

against any member of the Institute or any of its committees or any officer, servant or agent of the Institute, in respect of any act, neglect, default or omission done or omitted by it or him in good faith in such capacity.

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Public Authorities Protection Act 1948

“dissolved Board” means the Malaysian Forestry Research and Development Board dissolved under subsection 46(2);

“commencement date” means the date on which this Act comes into operation.

Repeal and dissolution

The Malaysian Forestry Research and Development Board established under the repealed Act is dissolved.

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Transfer of powers, etc.

All properties and assets, other than land, that before the commencement date were vested in the dissolved Board or in any person on behalf of the dissolved Board shall on the commencement date vest in the Institute.

Existing contracts

All moneys standing in or due to be paid to the Forestry

Research and Development Fund shall on the commencement date be transferred to and vested in and be deemed to be part of the

Fund.

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Membership of dissolved Board

Nothing in subsection (1) shall affect the accountability of the outgoing members of the dissolved Board and as soon as practicable after the commencement date, the dissolved Board shall prepare and submit to the Minister a report including the financial statements required under the repealed Act, but the report shall be limited to the period from 1 January of the relevant year to the date before the commencement date.

Notwithstanding subsection (1), the dissolved Board shall continue in existence for the purpose of subsection (2).

Officers continue to hold office

Director General;

Deputy Director General;

officers and servants of the Institute, shall be deemed to have been appointed under this Act and shall continue to hold such office on the same terms and conditions for a term expiring on the date on which their appointments under the repealed Act would expire.

Continuance of pending applications, etc.