Agarwood oil grading project to begin in November
The six-month initiative will lay groundwork for a national grading system, with research institutions and industry experts involved.
A project to establish grading standards for Malaysian agarwood oil is scheduled to start in November and run for six months, according to Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad.
Noraini described the project as preliminary work towards the National Agarwood Grading System. The Malaysian Timber Industry Board (MTIB) is working with researchers and industry specialists on the system, which she said would help give Malaysian Oud a clearer international identity and improve buyers’ confidence.
She spoke to reporters in Melaka following the opening of the 2026 Agricommodity Entrepreneurs Festival at Mahkota Parade.
On grower participation, Noraini said 456 agarwood growers had registered with MTIB by September 2026, involving approximately 2.3 million Aquilaria trees. Nearly 100 new growers had entered the sector in a period shorter than a year.
Financial assistance through MTIB includes RM100 per tree for inoculation. Noraini said approvals under that incentive had reached RM1.76 million, involving 161 growers. A separate incentive for oil distillation is also available to support entrepreneurs in adding value to agarwood products.
She also pointed to possible uses beyond agarwood and essential oils for cosmetics, aromatherapy and perfumes. Leaves of the karas tree could be used for products including tea, coffee and biscuits, she said.
