MELAKA (Nov 9): The development project for agarwood oil grading standards, which will be implemented over six months starting this month, is expected to be an important step in strengthening the local agarwood industry.
Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad said that the project is an initial step towards the development of the National Agarwood Grading System, which is being pursued by the Malaysian Timber Industry Board (MTIB) in collaboration with research institutions and industry experts.
She said the development of these standards is important to ensure that local agarwood oil extracts have clear grading standards, thereby strengthening the identity and brand of "Malaysian Oud" on a global scale.
"To compete in the global market, Malaysian agarwood needs a distinct identity, and in this regard, MTIB is moving towards the National Agarwood Grading System.
"This standard is important to enhance buyer confidence and strengthen the Malaysian Oud brand internationally," she said to reporters after officiating the 2026 Agricommodity Entrepreneurs Festival at Mahkota Parade here on Monday.
Noraini said that efforts to strengthen the agarwood industry also include support for growers and entrepreneurs through various initiatives provided by MTIB.
As of September 2026, she said, a total of 456 agarwood growers have registered with MTIB, involving approximately 2.3 million Aquilaria trees, commonly known as agarwood and locally referred to as karas trees, while nearly 100 new growers have joined the industry within less than a year.
The government, through MTIB, provides an inoculation incentive of RM100 for each tree, and a total of RM1.76 million has been approved involving 161 growers so far.
In addition, MTIB also provides the oil distillation incentive to help entrepreneurs add value to agarwood products," she said.
Noraini said the potential of the industry is not only limited to the production of agarwood and essential oils for the manufacture of cosmetics, aromatherapy and perfumes, but the leaves of the karas tree can also be diversified into products such as tea, coffee and biscuits.
It is said that Malaysia has five out of the 22 species of Aquilaria trees found worldwide, including "Aquilaria malaccensis" which refers to Melaka.
Earlier, she said that the two-day 2026 Agricommodity Entrepreneurs Festival, which ends on Tuesday (Nov 10), brings together more than 10 entrepreneurs showcasing and selling agricommodity products, especially those based on wood, cocoa, kenaf and palm oil.
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