The importance of economic valuation for conservation in Lower Kinabatangan Segama Wetland, Sabah

Lower Kinabatangan Segama Wetland (LKSW) consists of three Permanent Forest Reserves covering an area approximately 78,803 ha. Situated in the eastern coast of Sabah and managed by Sabah Forestry Department, LKSW has been designated as a Ramsar Site in 2008. The natural ecosystem in LKSW comprises of mangrove and peat swamp vegetation, wet grassland on peat and brackishit provides a habitat to various species of fauna and flora. Villages within and adjacent to LKSW also depend on the natural resources available for their source of food and subsistence. The uniqueness of its biodiversity has potential for ecotourism from both local and international markets. The resources in LKSW have an economic importance in terms of market value and non-market value creating a significant need for economic assessment. Economic valuation is widely used for quantifying economic importance of wetlands in conservation and development planning. It also aims to quantify the benefits that people obtain from wetland ecosystem goods and services. This makes them comparable with other economy sectors whereby investments are assessed and activities are planned. Hence, due to limited information about wetland value, misallocation of resources can substantially occur which can lead to immense economic costs. This paper will briefly highlight the importance of determining the market and non-market values as well as the valuation method approaches for LKSW