Malaysia’s timber industry continues to contribute significantly to exports, reaching RM9.4 billion between January and June 2026, while its average annual export value exceeds RM20 billion.

Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad said the industry is no longer focused only on timber production and processing. It has expanded into the production of furniture, doors, flooring, building components, interior finishes and various lifestyle products.

Agarwood, produced from the karas tree, is another high-value commodity in the sector, she said.
“Its unique aroma makes agarwood an important ingredient in the production of essential oils, fragrances and premium products.

“Today, more than two million karas trees have been planted nationwide,” she said in her closing speech at the Road to the Oud and Wood Artisan Expo (OWA) with Commodities Programme and the pre-launch of OWA 2027 today.

Noraini said a more organised agarwood industry, starting with cultivation, resin production, processing, product development and marketing, should be developed leveraging this foundation.

She said agarwood has an established market with considerable room for growth.
“But we do not want to remain as a raw material exporter only.

“We want to move from wood to essential oils, from essential oils to fragrances, and subsequently to premium brands that carry Malaysia's name,” she said.

The production of agarwood oil, perfumes, personal care products, handicrafts, souvenirs and various lifestyle products offers opportunities for local entrepreneurs to enter higher-value segments of the value chain.
“Agarwood is more than just wood or a traditional fragrance ingredient. It embodies heritage, craftsmanship, innovation and immense commercial value,” she said.

Noraini said the development of the industry must benefit the entire value chain, from karas tree growers and distillers to artisans, product manufacturers, brand owners and exporters.

Combining natural resources with artisanal skills, innovation, design, and branding could establish Malaysian agarwood as one of the nation's key identities, she said, adding that broader market access underpins this potential.
“Malaysian agarwood oil has been used as a key ingredient in the production of luxury fragrances by international brands. This proves that our products can go much further,” she said.

Noraini said the Road to OWA initiative brings the local agarwood, timber and handicraft industries closer to the public. It also showcases other agricultural commodities such as palm oil, rubber, cocoa, pepper and kenaf.

The programme is not only a platform for exhibitions and sales, but also brings producers, artisans and entrepreneurs together with industry partners and markets, she said.

“This is the first step towards elevating local heritage and skills through the production of high-value products that have the potential to reach wider markets,” she said.

Source: bernamabiz.com