Collaborative research between Yayasan Sabah Group and the Forestry Division of the Centre of International Cooperation for Agronomic Research for Development (CIRAD-Foret), formerly known as CTFT, France, commenced in 1989 with the signing of a Principal Memorandum of Understanding.

The three-year project covered various aspects of tree improvement and seed production, with emphasis on Teak and three species of Acacias, for the production of quality planting materials for Yayasan Sabah Group’s tree plantation establishments. The Plant Biotechnology Laboratory (PBL) project was initiated in 1992 with the signing of a Supplementary MOU by both partners for a period of 5 years, with the objectives of developing in vitro protocols for the introduction and multiplication of selected genotypes of both species. Following this MOU, another extension was made in 1997. The later serves to strengthen the activities of the previous phases while expanding into new activities such as commercialisation of the results from research activities.

Teak and Acacia plantlets from the PBL, as well as rooted cuttings from nurseries in the Luasong and Taliwas Forestry Centres, were then sold to local planters. At the same time, exportation of teak plantlets to overseas clients was undertaken on a small scale.

In light of the worldwide demand of teakwood in the face of an ever-decreasing supply from natural teak forests, there is a recent surge in the establishment of teak plantations in most tropical and sub-tropical regions. Realizing the PBL’s potential in the supply of in vitro planting materials, a joint venture agreement was signed by the two parties in May 2003. This agreement recognizes the joint ownership of the developed technologies for teak with the intent of commercial production and supply.

As part of this agreement and a fourth PMOU signed in January 2005, further work in the areas of DNA fingerprinting and wood analyses of selected clones has been conducted in line with the certification process, which will in turn offer a stronger promotion of our plant materials to overseas buyers. Other areas of research to be undertaken with a view to commercialisation are on cash crops such as oil palm as well as species such as orchids and medicinal plants of commercial importance.