Malaysia’s timber exports reached RM9.4 billion in the first half of 2026, with the industry maintaining an average annual export value of more than RM20 billion, Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad said.
She said the timber industry had also moved beyond conventional wood production and processing, with products now including furniture, doors, flooring, building components, interior finishes and lifestyle products.
Noraini said agarwood, produced from the karas tree, was another high-value segment with significant potential for further development, noting that more than two million karas trees had been planted nationwide.
She said Malaysia should develop a more structured agarwood industry covering cultivation, resin production, processing, product development and marketing, rather than focusing mainly on raw material exports.
“We do not want to remain 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 at the closing of the Road to the Oud and Wood Artisan Expo (OWA) with Commodities Programme and pre-launch of OWA 2027 today.
She said products such as agarwood oil, perfumes, personal care items, handicrafts and souvenirs could help local businesses move into higher-value segments and expand their market reach.
Noraini said such development should benefit the entire value chain, from karas growers and distillers to artisans, manufacturers, brand owners and exporters.
She also noted that Malaysian agarwood oil is already used by international luxury fragrance brands, indicating existing demand for the commodity.
The Road to OWA initiative brings together the local agarwood, timber and handicraft sectors while showcasing other commodities, including palm oil, rubber, cocoa, pepper and kenaf.
Noraini said the programme also connects producers, artisans and entrepreneurs with industry players and markets as part of efforts to promote higher-value products and strengthen Malaysia’s commodities sector.
