Malaysian companies control two-thirds of papua new guinea’s forest clearing permits, new report reveals

Papua New Guinea’s vast rainforests cover 28.2 million hectares and rank among Earth’s most biodiverse ecosystems, harboring an estimated 5-8% of all global species. Despite 97% of the country’s land being legally recognized under customary tenure—meaning it belongs to traditional communities—foreign corporations are reaping the profits from PNG’s booming timber trade, which consistently ranks the nation among the world’s top tropical log exporters.

A new investigation by RimbaWatch, a Kuala Lumpur-based research organization, exposes how Malaysian companies have gained unprecedented control over Papua New Guinea’s forest resources. The report reveals that Malaysian firms hold 65 out of 67 active Forest Clearing Authorities (FCAs)—permits that allow large-scale conversion of natural forests exceeding 50 hectares for supposed agricultural development. These permits now account for one-third of all timber exported from the country as of 2024.

While FCAs are officially designed to create sustainable jobs and income through development projects, critics argue they have become a backdoor mechanism for large-scale logging operations. The concentration of these permits in Malaysian hands raises serious questions about whether Papua New Guinea’s forest laws—intended to ensure customary landowners maintain control over their traditional territories—are being effectively enforced.

This dominance by foreign corporations highlights a troubling pattern where one of the world’s most ecologically significant forest systems is being exploited primarily for external profit, potentially undermining both biodiversity conservation and the rights of indigenous communities who have stewarded these lands for generations.