About 20 companies identified to be involved in illegal forest and land clearings here faced being blacklisted, said Minister in the Prime Minister's Department Datuk Seri Shahidan Kassim.

Shahidan, who is National Security Council (MKN) chairman said the council would be proposing to the Companies Commission of Malaysia (SSM) that the owners of such entities should be blacklisted from setting up new companies in future.

"We will ask SSM to prevent them from becoming directors in any companies," he told reporters after conducting a visit to former encroachment areas of forest reserves in Bukit Jerut and Sungai Kial, Tringkap near here today.

According to Shahidan, all companies had been identified under phase one of Ops Gading conducted by MKN in 2014 with the aim of eradicating illegal land clearing and the influx of illegal immigrants here.

He said that Ops Gading also identified about 100 illegal farmers, a portion of whom were illegal immigrants.

"Investigations are being carried out and if convicted, all farming assets would be seized while the supply of water and electricity will be cut.

"If the farmers are found employing illegal immigrants, they face caning by the authorities," he said.

Commenting further, Shahidan said the implementation of Ops Gading phase two would be starting next month after monitoring was conducted since March with the involvement of various departments and agencies including MKN.

He said the operation this time would focus on a 364.2-hectare site.

"The area (364.2 hectares) was the remaining 25 per cent from the 2,023-hectare site involved in Ops Gading phase one which was halted in 2015," he said.

He added that Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi would be chairing the Cameron Highlands Rehabilitation Joint Action Committee on April 12 to discuss strategies to combat future encroachments.