To promote the sustainable forest management in Sungai Medihit watershed area by building the capacity of the community, demonstrating innovative operational model and establishing new governance mechanism on community development.

o improve sustainable forest management through setting rational forest management plans, applying innovative forest management techniques and establishing effective forest management mechanism;

To enhance the capacity of communities on sustainable forest management and livelihood development;

To better the living conditions by renovating the community service infrastructure.

Improved community forest management capacity. Community forest management plans developed, and innovative forest management techniques demonstrated.

Enhanced capacity of community-forest-based livelihood development.

Improved living conditions by renovating the community service infrastructure.

The project successfully enhanced sustainable forest management (SFM) and community livelihoods in the Sungai Medihit Watershed. Key outcomes included the development of Community Forest Management Plans for the Kelabit and Penan Indigenous Peoples, establishment of SFM demonstration sites for agroforestry and high-value species planting, and completion of baseline socio-economic and forest resource surveys. These efforts improved local capacity for sustainable resource use and governance.

Socially, the project fostered entrepreneurial growth, particularly among Penan women, who expanded handicraft sales to international markets (e.g., Brunei, USA) with NGO support. Both communities shifted from skepticism to active participation in SFM, with the Kelabit community endorsing a reserved forest as a demonstration site.

Economically, alternative livelihoods like poultry farming, vegetable cultivation, and homestays increased household incomes. The Penan community’s handicraft business now generates up to USD 750 monthly, while improved road infrastructure (e.g., 1.5 km village road) enabled better market access and transportation.

Environmentally, SFM practices reduced reliance on unsustainable logging. Demonstration sites promoted enrichment planting, NTFP sustainable harvesting, and river conservation. Communities now protect high-value forests and prioritize pollution control to support fish-rearing systems.

Institutional impacts included the Forest Department Sarawak adopting community-led management models, with plans to replicate them elsewhere. Post-project sustainability efforts focus on ecotourism development, government-supported agroforestry, and potential Phase 2 activities to expand SFM and livelihood initiatives.