IPOH, April 23 — The state Forestry Department is in the process of refining its standard operating procedure and guidelines to ensure forest farm development projects in the state are only given to companies that are qualified and capable in terms of expertise and financial stability.

Mentri Besar Datuk Seri Ahmad Faizal Azumu said the state will require companies interested in forest farm development projects to have a minimum of RM200,000 in capital.

"Before this, it was not a criteria for companies to have a certain amount of capital before they could apply for the project.

"For the information of the House, the terms had not been checked since Independence. To apply for timber concessionaire and forest farming in the state, companies only need to have a hammer. I myself was not aware of this,” he said in his winding-up speech at the State Assembly here today.

Ahmad Faizal said the state will also take into account the companies’ status and capabilities before approval is given.

Malay Mail previously shed light on forest farm development projects at the Kledang Saiong and Bukit Kiara Forest Reserves that had been approved to a then RM2 company.

Ahmad Faizal said the company which had applied for the forest farming development had been screened by the Forestry Department.

Ahmad Faizal added the company would be cooperating with MTIB to develop the 400ha of land, which was identified as secondary forest.

The controversy erupted when DAP’s Kampar MP Thomas Su lodged a report with the Malaysian Anti-Corruption Commission (MACC) over the state government’s decision to award the concession to the then five-month-old company which initially had a paid-up capital of just RM2 that was formed after the 14th general election.

The company now has RM500,000 paid up capital.