Asrama Raya Sdn Bhd (ARSB) identified only one local community (Kampung Payong), located about 15 km outside of HS Petuang along the main access road to the concession. Based on ARSB company policy, Asrama Raya shall provide social benefits to local and indigenous communities identified as significantly affected by our forestry operations. Asrama Raya also will provide fair compensation to local community, if the land owned by local community happens to be used by Asrama Raya. Asrama Raya also will provide fair compensation where forest operations lead to loss or damage to property, resources, livelihoods and/or legal or customary use rights of local community.

Livelihood:

The livelihood of most people in Kg. Payong is through cultivation of rubber trees and oil palm. The villagers plant rubber trees to tap the latex and collect oil palm fruits from planted trees which is sold to local oil palm mill or latex factory. The people tend to earn an average of over RM 1000/month from agricultural produce. The younger people tend to move out of Kg Payong to work outside of the village.

According to the survey the people from Kg Payong do not hunt or fish or collect non-timber forest products like rattan from HS Petuang. There are no religious sites by the community within HS Petuang. There is a masjid in the village that forms the centre of religious activities.

Critical social needs:

Kg. Payong is located along a main roadway that provides good access to transportation and markets. The community has public access to electricity and water. The community has a primary school (Sek.Keb. Payong Baru) but children have to take a bus to go to the secondary school (Sek. Men. Keb Langkap). Health care facilities are located in Langkap about 10 km from Kg Payong. The main hospital is located in Setiu that is about 50 km in distance.

Conservation values related to social needs :

According to the survey results, the people from Kg Payong do not depend on forest resources and there is no evidence of encroachment. The level of impact between the community and HS Petuang is not significant as the community does not utilize the forest for part of its livelihood or is does not provide critical needs to the community.