Under the Malaysian Constitution, forestry comes under the jurisdiction of the respective State Governments. As such, each State is empowered to enact laws on forestry and to formulate forestry policy independently. The executive authority of the Federal Government only extends to the provision of advice and technical assistance to the States, training, the conduct of research, and in the maintenance of experimental and demonstration stations. In order to facilitate the adoption of a coordinated and common approach to forestry, as well as reconcile cross-sectoral policies that interface with the forestry sector, the National Land Council was established to enable the Federal and the State Governments to discuss and resolve common problems and issues relating to forestry policy, administration and management, as well as to enhance cooperation between the Federal and State Governments, so as to ensure a coordinated approach in the implementation of policies and programs related to forestry.

​Malaysia is committed to the implementation of Sustainable Forest Management (SFM). While focusing on economic growth and development, Malaysia will give equal emphasis to promote conservation of its natural resources and to give adequate attention to social and environmental aspects as well and these are enshrined in the National Forest Policy 1978 (Revised 1992) objectives statement as follows: