Thedonation followed a call from the Malaysian government forcontributions from companies to help rehabilitate the severely damagedforests in the northern state of Sabah. The state, on Borneo island,has seen widespread logging.

Sime Darby will devote $7.2 millionover 10 years in the Ulu Segama Malua Forest Reserve. The money will bespent on replanting and securing a home for up to 500orangutans across 5,400 hectares.

Malaysian Companies Chip In to Save Rainforests

Sime Darby, which among other things operates oil palm plantations, says the endowment represents good corporate governance.

Malaysian Companies Chip In to Save Rainforests

"Thisalso shows the government commitment and seriousness aboutconservation, especially our very endangered species like theorangutan," says Musa Aman, Sabah's chief minister.

Malaysian Companies Chip In to Save Rainforests

Orangutans are endangered large apes that live in the trees of Borneo's rainforests.

Morecontributions for the Ulu Segama project have been promised fromBritish department store chain Marks and Spencer, the WWF environmentalgroup, and the Leaf Organization, which is dedicated to environmentallyfriendly and sustainable farming.

Sabah has won internationalpraise for the way it has managed its rain forests. This is in contrastto the devastation wreaked on the jungles of neighboring Kalimantan inIndonesia, where forests are cut down to clear land for growing palmoil or for timber.