Xavier on Pahang's RM17b request: Feasibility is another issue

Water, Land and Natural Resources Minister Xavier Jayakumar said all states want compensation from Putrajaya for preserving their forests, but whether it can afford to fork out such money is another matter.

He said this in response to Pahang's request for a whopping RM17.1 billion to preserve forest and wildlife reserves and maintain water catchments which primarily benefit other states, including neighbouring Selangor.

"We have not made any decision to provide compensation to any states with regard to this issue.

"All states want compensation, but whether we can provide compensation or not is another matter," he told journalists in conjunction with the Earth Day celebration in Taman Tugu, Kuala Lumpur today.

Pahang Menteri Besar Wan Rosdy Wan Ismail said maintaining the reserves came with an opportunity cost, as the state government had to forgo logging and mineral revenue.

Nor can it collect tax and premiums from the land which could otherwise be used for plantation, he said.

On a separate matter, Xavier encouraged state governments to monetise the preservation of forests.

"We have plans for the forestry industry which can be a new source of income.

"I think the state governments should take this opportunity. It is a new and lucrative business model," he said. - Mkini