The Lormalong palm oil estate is one of the oldest re-settlement schemes in Sabah. Located at the East coast of Kunak District, it was officially opened in February 1968, but already initiated in 1962 by the ‘Residency Development scheme’. Firstly managed by the DoA in 1965, the mandate was given to the SLDB in 1969. Originally the scheme recruited only 71 settlers mostly fishermen from nearby Kunak town in 1965, but almost all have left the scheme and returned to their fishing activity in Kunak. The fishermen group was replaced by new groups of people from Tuaran (the Bajau), and Tenom (the Murut) from the West coast of Sabah who came from an agricultural background communities. The scheme also received people from the Iban ethnic group which originating from the neighbouring state of Sarawak who joined the scheme after the timber industry in Merotai, Tawau District came to an end. The palm oil replanting programme in Lormalong was carried out in July 1995, a year before the SLDB was incorporatised in 1996. A total of 257 hectares were replanted with new palm oil seedlings, thirty-three participants continued under the SLDB management from a total of sixty-three original settlers.