PETALING JAYA: Malaysia should move beyond exporting raw agarwood and focus on turning the fragrant commodity into higher-value products, says Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad.
She said Malaysia had a strong foundation to develop the industry, with more than two million karas trees planted nationwide.
“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 in her closing speech at the Road to the Oud and Wood Artisan Expo yesterday.
Noraini said growing demand for agarwood (also known as oud) presented opportunities for local entrepreneurs to move up the value chain through products such as agarwood oil, perfumes, personal care products, handicrafts, souvenirs, and other lifestyle products.
Malaysia’s agarwood woodchip exports reached almost 95,000kg worth RM11.4mil last year, reflecting the commodity’s growing market.
She said the industry should be developed across the entire value chain, from planting karas trees and producing resin to processing, product development, and marketing.
“Today, Malaysian agarwood oil is already used as a key ingredient in luxury fragrances by international brands.
“This shows that our products have the quality to go further.
“Our next task is to ensure that the Malaysian name and brands are recognised alongside these products,” she said.
Agarwood, produced from karas trees, is prized for its distinctive aroma.
Noraini also stressed the importance of developing the agarwood and timber industries responsibly, with buyers increasingly concerned about the source of products and how they are produced.
She said agarwood traded under the Convention on Inter-national Trade in Endangered Species of Wild Fauna and Flora must be accompanied by valid documentation and permits.
Karas growers and agarwood processors must also be registered with the Malaysian Timber Industry Board, she added.
Noraini said the timber and wood-based products sector remains an important contributor to the economy, with exports reaching RM9.4bil from January to June this year.
She said annual exports averaged more than RM20bil, with the industry expanding beyond timber production and processing into furniture, flooring, construction components, interior finishes, and lifestyle products.
Noraini said Malaysia’s traditional woodworking and carving skills should also be incorporated into modern designs and commercially viable products.
Citing Istana Lama Seri Menanti in Negri Sembilan as an example, she said the building, constructed in 1902 using chengal wood and without iron nails, reflects the country’s longstanding woodworking expertise.
With Indonesia, Thailand, and Vietnam also moving quickly in the sector, Noraini said Malaysian products needed a stronger and more distinctive identity.
