THOMAS HAH TIING SIU & JOINLAND BRINGS SOCIO-ECONOMIC BENEFITS TO THE REMOTE REGION OF NEW

DATO’ SRI THOMAS HAH TIING SIU & JOINLAND BRINGS SOCIO-ECONOMIC BENEFITS TO THE REMOTE REGION OF NEW HANOVER ISLAND 8 years ago, ​Joinland (PNG) Ltd (“Joinland PNG”)​, embarked on a major undertaking involving an agro-forestry project to develop rubber plantations on the island of New Hanover with a vision to transform the island to serve as a rubber-producing hub of Papua New Guinea (“PNG”), stimulating economic growth in this area.

Dato’ Sri Thomas Hah Tiing Siu, founder of Joinland ​said, “When Joinland first came to New

Hanover many years ago, we recognised the huge potential for development as the island had an abundance of natural resources. As an isolated island lacking major economic activities with most of its people living in poverty, we had a goal to develop this unutilised land in a sustainable manner, that can in turn significantly contribute towards economic and social growth for the long-term benefit of the people. We believe this opens up income-earning opportunities for the community to enhance their livelihoods.”

Dato’ Sri Thomas Hah Tiing Siu

The Central New Hanover Agro-forestry Project (“New Hanover Project”) ​is a

collaboration between Joinland PNG with a local developer, Tutuman Development Ltd (“Tutuman”) with the support of PNG’s local government authorities and provincial administration. In January 2012, Joinland and Tutuman joined hands to initiate the project to plant rubber trees under the Special Agriculture Business Leases (“SABL”) Arrangement.

The land area that has been designated for the New Hanover Project covers a total of 56,592 hectares, with Joinland committed to planting a total of 5 million rubber trees by 2022.

RUBBER DEVELOPMENT, THE WAY FORWARD A rubber farmer in PNG could earn as much as K167,400 per year from cup lump sales alone, according to the ​PNG Rubber Board Chairperson, Ms. Josephine Kenni​. She said rubber trees produce around 270 kilograms of latex per year so if a farmer owns 500 rubber trees and sells his cup lumps at K1.20 per kg, he or she could earn as much as K167,400 per year. At mid-stream processing level (Technically Specified Rubber), a farmer could earn as much as K418,500 per year.

Mr. Pedi Anis, the Chairman of Tutuman said, “The New Hanover Project is a muchwelcomed initiative as it aims to give its citizens a chance for a better life. We believe that the rubber industry can be a catalyst for the economic transformation of New Hanover.”

On 25 September 2017, more than 2,000 rubber farmers from 53 different Incorporated Land Groups on New Hanover received a major boost when they received a rubber exporting license from the PNG Government.

The rubber exporting license was awarded through New Hanover Industries Limited which comprises three landowner companies; Tabut Ltd, Umbukul Ltd and Malmalak Ltd. “Apart from that, New Hanover rubber farmers are also the first in the country to join the National Civil and Identity Registration exercise sponsored by PNG Rubber Board.”

This is a benchmark initiative which the board wished to champion across rubber growing regions in PNG. ILGs are organised groups recognised as a legal corporate entity, representing customary landowners. ILGs also have the role and responsibility of distributing or disposing any property or income of the group.

“Public-private partnerships such as this are beneficial to the villagers of New Hanover. The success of this project is dependent on close cooperation between local businesses, investors and government agencies in pursuit of developing the plantation into a sustainable business.”

SILAU Clan ILG Chairman Paul Lasiu says the rubber project is good for both the current and future generation. “Through the rubber project, the local communities were now witnessing a lot of changes taking place through basic services including roads, water, health, schools, housing, church and others.”

Mr. Deodatus Hii, the Managing Director of Joinland PNG said, “We are proud of the progress of the project as we have delivered on our promise thus far. In fact, we have expanded to develop other commodity crops other than rubber as an extension to the New Hanover project.”

Since the project first started in 2012, Joinland has planted over 2.5 million rubber trees, 560,000 cocoa trees and 54,000 coconut trees. These crops are then harvested to be marketed and exported, ensuring that the farmers and landowners reap the optimum value of these resources. Additionally, rubber, cocoa and coconut seedlings are distributed to farmers under the community agricultural plots programme.

The second stage of the project, encompassing the processing and marketing of the agricultural crops, is currently in progress. The third phase of the project is part of the sustainability initiatives implemented involving reforestation at the cleared area.

Currently, for every 1 tree that is cut down, Joinland plants another 15 trees of essential species in its place, with the aim of preserving the natural ecosystem. ​Over 800,000 Calophyllum trees, a timber species native to PNG, have been planted for this purpose.

In terms of economic benefits, the New Hanover Project has generated over ​K88.3 million in revenue since the start of the project, with ​K35.6 million paid to landowners in royalty and levies and ​K52.7 million​ paid in export duties and levies to the PNG government.