| Summary: | The feasibility of using Laran (Neolamarckia cadamba) and Binuang (Octomeles sumatrana) for monoculture plantations and intercropping with oil palm is discussed. Financial analysis of Laran and Binuang plantations gives a high internal rate of return of 12 to 29%. Plantations of Laran and Binuang are recommended in areas devoid of regeneration of timber species in commercial forest reserves, and on sites where other crops cannot be grown due to pest and disease infestation. The results of a study on the canopy opening of oil palm plantations show that interplanting Laran and Binuang with oil palm is highly feasible. This agroforestry system capitalises on the unutilised sunlight during the early growth of the oil palm before canopy closure which occurs at the age of about 8 to 10 years. Introduction of the timber species in oil palm plantations is expected to incur minimal costs and could yield about RM 19,800 worth of timber per hectare in 10 to 12 years. Planting timber trees within oil palm plantation is also an insurance against risks of low price of palm oil and outbreaks of pests and diseases. If oil palm becomes less productive for these and other reasons, the land is still used for timber production. Laran and Binuang are common indigenous species which are considered favourable from the environment point of view. If it is decided to keep both timber trees and oil palm at all times, the number of planting points of oil palm needs to be reduced.
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