Malaysia Timber Exports Reach RM9.4 Billion as Nation Aims for High-Value Agarwood Market

KUALA LUMPUR, Sept 13 – Malaysia’s timber industry recorded RM9.4 billion in total export value between January and June 2026, maintaining an average annual export performance exceeding RM20 billion as the sector expands into downstream high-value products, according to Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad.

Speaking at the closing of the Road to the Oud and Wood Artisan Expo (OWA) with Commodities Programme and the pre-launch of OWA 2027 on Sunday, Noraini emphasized that the national timber industry has diversified far beyond raw log production and primary processing. The sector now encompasses manufactured furniture, doors, flooring, structural building components, interior architectural finishes, and specialized lifestyle goods.

Highlighting agarwood harvested from cultivated karas trees—as a strategic high-value commodity within the sector, Noraini noted that over two million karas trees have been planted across the country to support the expanding industry. She urged industry stakeholders to build a fully integrated ecosystem encompassing cultivation, resin extraction, distillation, product development, and international branding.

“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,” Noraini stated. She highlighted that Malaysian agarwood oil is already utilized as an essential ingredient by global luxury fragrance houses, demonstrating the international competitiveness and commercial upside of local artisanal products.

Noraini added that expanding downstream manufacturing into agarwood oil, fine fragrances, cosmetics, handicrafts, and luxury lifestyle products offers significant entry points for local micro-entrepreneurs and artisans to participate in higher-value segments. The minister reiterated that the Road to OWA initiative serves as a strategic platform to bridge local producers, artisans, and exporters while promoting key national commodities, including palm oil, rubber, cocoa, pepper, and kenaf, to global markets.

–NMT