Papua New Guinea (PNG) is a major exporter of tropical logs worldwide. This report investigates the role of Malaysian companies and individuals in large-scale forest clearance in PNG through the misuse of Forest Clearing Authorities (FCAs). Despite a 2023 moratorium on new FCA licences, widespread deforestation and human rights abuses persist.
At least 1.68 million hectares of rainforest are under threat from FCA licenses, an area equal to Sarawak’s existing oil palm landbank, or equal to the size of Eswatini. Of these forests, 88% are classified as ‘undisturbed forests’, and their conversion will release a combined 277.35 million tCO2e. Additionally, 175,173 hectares within FCA areas can now be spatially classified as non-forest, representing an area twice the size of Singapore, indicating the scale of conversion occurring within licensed areas. Analysis reveals that 65 of 67 FCA licences are controlled by Malaysian-linked companies, covering 97% of all FCA licenses. Some of the 79 Malaysian-linked individuals identified have faced allegations of illegal logging, fraud, and other misconduct, and are connected to politically influential families and major Sarawak-based logging firms.
