Malaysia Field Project: Conservation Area Lease
The Sugud Islands Marine Conservation Area (SIMCA) is a privately managed no-take marine protected area located 80 km from the coastal town of Sandakan in north-eastern Sabah, Malaysia.1 The reserve covers 463 square kilometers of the Sulu Sea and includes the islands of Billean, Tegapil and Lankayan.
SIMCA is managed by Reef Guardian, which is a private not-for-profit organization wholly owned by Pulau Sipidan Resort, the parent company of Lankayan Island Dive Resort (LIDR). LIDR, the only accommodation within the reserve, helps fund Reef Guardian operations by levying a conservation fee on all visitors to the resort. Reef Guardian uses funds derived from the visitor fees to establish surveillance systems, monitor the reserve, enforce regulations, train personnel, and undertake conservation and outreach programs. Since establishment of the conservation area, incidences of illegal fishing and turtle poaching have declined and fish abundance and turtle egg layings have increased.
Project Summary
| Location | Islands of Billean, Tegapil and Lankayan and surrounding marine resources |
| Area | 463 square kilometres |
| Use | Marine sanctuary, research and eco-tourism |
| Date/Duration | 2003-2033, 30 year lease with an optional 10 year extension |
| Fee | RM 60,000 (US$19,000) per year per resort |
| Grantor | Sabah Wildlife Department, Ministry of Tourism, Development, Environment, Science and Technology |
| Grantee | Reef Guardian |
| Legal Basis | UCN Category II Conservation Area under Sabah Wildlife Conservation Enactment 1997 |
| Start-up Costs | RM 200,000 (US$63,600) |
| Management Costs | RM500,000 (US$158,800) per year |

Legal Framework
The owners of LIDR initiated the establishment of SIMCA to counteract illegal and destructive fishing in the area and to protect turtle nesting habitats, fish populations and coral reef habitats. In 1997, the heads of Sabah Parks, the Department of Fisheries, Sabah Wildlife Department and LIDR met on Lankayan to discuss the idea of a privately managed marine reserve. Following this meeting, LIDR drafted a proposal and management plan; the reserve subsequently gazetted in 2001. LIDR funded SIMCA’s establishment, which totaled around RM 200,000 (US$ 63,600).
SIMCA was established as an IUCN Category II Conservation Area under the provisions of the Sabah Wildlife Conservation Enactment 1997. Category II areas are managed to preserve natural conditions and provide opportunities for recreation, so fishing and other extractive activities are prohibited. In 2003, the government of Sabah, in the guise of the Sabah Wildlife Department, a unit within the Ministry of Tourism, Development, Envir0nment, Science and Technology, leased the conservation area to Reef Guardian. The lease agreement runs for 30 years at the cost of RM 60,000 (US$19,000) per year. The lease has an optional ten-year extension.
Funding
Reef Guardian operations are partially funded by a conservation fee of RM25 (US$8) per visitor per night levied on the guests of Lankayan Island Dive Resort. The conservation fee generates approximately RM 250,000 (US$79,400) of revenue each year, which comprises 50% of the total operational costs of the reserve. The remaining costs are met entirely by LIDR. SIMCA’s RM500,000 (US$158,800) total annual operating costs translates to a per-hectare cost of US$3.43/year, which compares favorably with a median of US$ 7.80 per ha/year in a worldwide survey of the operational costs of 83 marine protected areas.2 With the exception of a US$ 20,000 grant from Conservation International in 2006, Reef Guardian has received no donor funding. Furthermore, there are no tax breaks or other financial incentives available to LIDR’s owners in return for their donations to Reef Guardian.
Aerial view of Lankayan Island dive resort. Photo © Reef Guardian
Organizational Capacity
Reef Guardian monitors and enforces reserve regulations and runs marine conservation and outreach programs. Reef Guardian is staffed by ten personnel who are stationed on Lankayan Island. The team is led by a marine biologist, who develops scientific research programs and outreach initiatives. Other staff members are responsible for ecological monitoring, turtle hatchings, radar surveillance and reserve enforcement. Staff operations are aided by Reef Guardian’s two high-speed patrol boats and radar equipment. Enforcement officers patrol the reserve’s boundaries and have powers of inspection and seizure. The officers are also permitted to arrest offenders, but in practice this is conducted by local police. The combination of regular patrols and radar surveillance has all but halted illegal and destructive fishing in the reserve.
Socioeconomic Considerations
Compliance with regulations is high, in part because no fishing families live within the reserve. Prior to the construction of LIDR, there was one family residing on Lankayan. After being consulted, however, the family residing on Lankayan approved development plans for the island. Despite the success of SIMCA, it remains the only privately managed marine protected area in Malaysia. The owners of LIDR have encountered institutional resistance whenever they have suggested similar initiatives to the Government of Sabah.

Nudibranch. Photo © Reef Guardian
Contact Information
Reef Guardian Sdn Bhd
PPM 255 Elopura
90000 Sandakan
Sabah Malaysia
Tel: +60-(89)675999/234000
Fax: +60-(89)675111/674111
Email: reefguardian2004@yahoo.com or achier300@yahoo.com
See Also
1 Teh, L., Teh, L. & Chung, F. A private management approach to coral reef conservation in Sabah, Malaysia. Biodiversity and Conservation 17, 3061-3077 (2008). (download pdf, 422k)
2 Balmford, A., Gravestock, P., Hockley, N., McClean, C.J. & Roberts, C.M. The worldwide costs of marine protected areas. Proceedings of the National Academy of Sciences of the United States of America 101, 9694-9697 (2004).

