Sustainable Investment in Southeast Asian Plantation Forestry

Plantation Forestry in Southeast Asia

Many Southeast Asian countries are attractive for institutional investment in plantation forestry as a result of the following factors:

  • Proximity to existing and fast-growing major markets such as China, Vietnam, Thailand, Indonesia, India, and Malaysia
  • Increasing pan-Asian Gross Domestic Product (GDP) and growing middle classes driving timber and wood fibre demand for both domestic consumption and wider re-export markets
  • Development of processing infrastructure, including opportunities for new investments relating to plantation assets
  • Competitive land and direct cost structures compared to those in other prominent forestry markets, such as Brazil, New Zealand, and the United States
  • Favourable growing conditions, including productive soils, rainfall, and climate
  • Potential to generate significant Environmental, Social, and Governance (ESG) related benefits, including climate mitigation and adaptation, biodiversity conservation, and support for communities and rural livelihoods.

New Forests believes that Southeast Asia offers institutional investors an opportunity for competitive forestry returns compared to more established markets, diversification into new markets, and the capacity to support the region’s transition to a sustainable, responsible forest industry. New Forests sees opportunities to add value to investments through disciplined forest management, a leading approach to responsible investment, and the strengthening of timber marketing and supply chains.

New Forests has been actively developing its forestry investment program in Southeast Asia since 2008. In 2012, New Forests launched its Tropical Asia Forest Fund (TAFF), the first institutional investment fund with a dedicated focus on sustainable forestry in Southeast Asia. Through the creation and successful deployment of TAFF, New Forests has developed an existing portfolio of businesses in Malaysia, Indonesia, and Laos covering approximately 150,000 gross hectares. In addition to focusing on improvements in forestry, timber markets, and governance, New Forests has implemented comprehensive Environmental and Social (E&S) programs, aligned with the UN Sustainable Development Goals, for each TAFF investment.

Delivering on Sustainable Development Goals

New Forests Advisory Pty Limited (ACN 114 545 274) is registered with the Australian Securities and Investments Commission and is the holder of AFSL No 301556 which authorises it and its authorised representatives New Forests Asset Management Pty Limited (ACN 114 545 283), (AFS Representative Number 376306), and New Agriculture Pty Limited (ACN 658 097 020) (AFS Representative Number 001298119) to provide general advice to wholesale clients into investments managed by New Forests. New Forests Inc is registered as an investment adviser under the Investment Advisers Act of 1940, as amended (the “Advisers Act”). Registration with the SEC does not imply any specific or certain level of skill or training. New Forests Asia (Singapore) Pte Ltd holds a Capital Markets Services Licence (CMS 100950) as an Accredited/Institutional Licenced Fund Management Company (A/I LFMC), issued by the Monetary Authority of Singapore.

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