The Sarawak State Government’s recent decision to implement the Murum Hydroelectric Project (MHP) in Sarawak has raised concerns over its impact towards the economic, social and cultural rights of the indigenous communities who would be internally displaced or affected by the construction of the hydroelectric dam...It seems that there is a shortfall in the extent of free, prior and informed consultation with the affected communities. Neither were civil society and environmental groups invited for their relevant views on the proposed project before its implementation...The Penan communities to be internally displaced or affected by the construction of the Murum dam...still suffer from poverty. There are genuine and pressing human rights issues affecting them. SUHAKAM recognizes that harnessing the country’s natural resources is within the right of any government. However, this should be done with prudence and due regard to the protection and promotion of basic human rights of these marginalised group. To mitigate the anticipated adjustment challenges in their new environment there must be free, informed and fair consultation with the affected Penan communities. Fair and appropriate compensation mechanisms inclusive of their right to their customary land must be in place.