The country’s timber industry continues to make an important contribution to national exports, with export value reaching RM9.4 billion from January to June 2026, while the average annual export value exceeds RM20 billion.
Minister of Plantation and Commodities Datuk Seri Dr Noraini Ahmad said the industry was no longer focused solely on timber production and processing, but had expanded into the production of furniture, doors, flooring, construction components, interior finishes and various lifestyle products.
She said another high-value commodity within the industry was agarwood, derived from the karas tree.
“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 speech at the closing of the Road to the Oud and Wood Artisan Expo (OWA) Programme with Commodities and the Pre-Launch of OWA 2027 recently.
Noraini also urged stakeholders to leverage the existing foundation to develop a more organised agarwood industry, beginning with the planting of karas trees and resin production, through to processing, product development and marketing.
She said agarwood also had an established market with significant potential for further expansion.
“We do not want to remain merely exporters of raw materials. We want to move from timber to essential oils and fragrances, and eventually to premium brands that carry the name of Malaysia,” she said.
She said these efforts could be explored through the production of agarwood oil, perfumes, personal care products, handicrafts, souvenirs and various lifestyle products, creating opportunities for local entrepreneurs to enter higher-value segments of the value chain.
The development of the industry should also benefit the entire value chain, from karas tree growers and distillers to artisans, product manufacturers, brand owners and exporters.
Datuk Seri Dr Noraini Ahmad, Minister of Plantation and Commodities
Such a combination of natural resources with artisan skills, innovation, design and branding could establish Malaysian agarwood as one of the country’s key identities.
“Malaysian agarwood oil has been used as a key ingredient in the production of luxury fragrances by international brands. This proves that our products have the quality to go even further,” she said.
Commenting on the Road to OWA Programme, she said the initiative aimed to bring the local agarwood, timber and handicraft industries closer to the public, while also showcasing other agricultural commodities such as palm oil, rubber, cocoa, pepper and kenaf.
The programme was not merely a platform for exhibitions and sales, but also brought industry players, artisans and entrepreneurs together with industry partners and markets.
“This is an initial step towards elevating our local heritage and skills through the production of high-value products that have the potential to reach greater markets,” she said.
