PETALING JAYA: Malaysia's agarwood chip exports reached nearly 95,000kg last year, showing the growing market for the high-value commodity, says Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad.
She said the exports, worth around RM11.4mil, showed there was room for further growth, but Malaysia should move beyond exporting raw materials and capture more value from agarwood.
“We want to move from wood to essential oils, from essential oils to fragrances, and eventually to premium brands carrying the Malaysian name,” she said.
Noraini said opportunities included producing agarwood oil and perfumes, as well as personal care products, handicrafts, souvenirs and other lifestyle products.
“This is where local entrepreneurs can enter the higher-value chain,” she said in her closing speech at the Road to the Oud and Wood Artisan Expo (OWA) with Commodities programme and OWA 2027 pre-launch at The Curve here on Sunday (Sept 13).
She said Malaysia had a strong foundation to develop a more structured agarwood industry, with more than two million karas trees planted nationwide.
The industry needed to cover the entire value chain, from cultivating karas trees and producing resin to processing, product development and marketing, she added.
Agarwood, produced from karas trees, is prized for its distinctive aroma and is used in essential oils, fragrances and other premium products.
“Through Road to OWA, we want to change the way society views agarwood. It is not merely wood or a traditional fragrance ingredient. Behind it are heritage, skills, innovation and significant commercial value,” she said.
Noraini said the industry should benefit all players along the value chain, from karas growers and distillers to artisans, manufacturers, brand owners and exporters.
She said Malaysia had the potential to make agarwood part of its national identity by combining its natural resources with artisan skills, innovation, design and branding.
Access to wider markets would be crucial, she added, noting that Malaysian agarwood oil was already being used as a key ingredient in luxury fragrances by international brands.
“This proves that our products have the quality to go further. The next task is to ensure the Malaysian name and brands are recognised alongside these products,” she said.
Noraini also stressed the need for responsible development of the agarwood and timber industries, as buyers were increasingly concerned about the source of products and how they were produced.
She said agarwood traded under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) must have valid documentation and permits, while karas growers and agarwood processors were required to register with the Malaysian Timber Industry Board (MTIB).
A recent enforcement operation involving MTIB and other agencies resulted in the seizure of agarwood worth RM5mil, she said.
The timber and wood-based products sector also remained an important contributor to the economy, with exports reaching RM9.4bil from January to June this year.
Noraini said annual exports from the sector averaged more than RM20bil, with the industry expanding into furniture, doors, flooring, construction components, interior finishes and lifestyle products.
She said Malaysia’s traditional woodworking and carving skills should be preserved by bringing them into modern designs and commercially viable products.
