Is Agarwood legal in Malaysia?

What is Agarwood?

Agarwood is the most expensive wood globally and is also known as Oud, Gaharu, eaglewood, aloeswood. This wood can be produced from the Aquilaria tree, and it can also be made from some other spices of Genus Aquilaria. The Valuable name of this solemn and dark wood reflects its importance. This wood is using for thousands of years ago.

Agarwood is using in medicine for thousands of years in Asia.  Oud is used in Tibetan, Ayurvedic, and some other traditional Asian medical treatments.  Agarwood oil and incense are used in perfumes and scents.  It is also used in some expensive pieces of jewelry and some eatable products.

In the international market, Agarwood is started to trade in the thirteenth century. India became the first exporter of Agarwood in the thirteenth century.

Now Agarwood is sold in considerable quantity from 20 central exporter countries.  Agarwood segments and chips have a substantial price and traded in thousands of dollars in the International market.

Exporter Countries of Agarwood:

 An international report shows Malaysia and Indonesia are the leading exporters of Agarwood in the global market. The report shows that Malaysia has a larger export share of Agarwood in the worldwide market.

Market and Prices of Agarwood:

 Traditionally, India was the prominent trader of Agarwood and dealt with the scents produced from Oud wood. But this division is not applicable in today’s market.

Indian traders are now working in other industries, such as textiles and leather garments. The traditional location of the Agarwood market is transferred from Mumbai to Colaba.

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Agarwood’s prices are high, and one kilogram (KG) of Agarwood Chips has the price of $118/Kg.  These chips are exported to the global market and used in some expensive products. The perfumes, scents, and jewelry of Agarwood are also costly in the international market.

Is Agarwood legal in Malaysia?

The Malaysian government has implemented some laws and regulations on the Agarwood industry: including the collection, cultivation, manufacturing, and processing of the Agarwood.

The laws of protection have two fundamental aspects. First is the establishment of protected areas, and second is the regulation of harvest.  The protection law of Agarwood prohibits citizens from destroying or misusing this natural source because Agarwood is unique and valuable in the world.

The demand for Agarwood has been increasing continuously, so overwhelming the natural resources  Malaysian government said that research of Agarwood trespassed by illegal loggers that stole the colossal amount of Aquilaria tree.

So plantation and Agarwood trade are legal in Malaysia, government only prohibits the harvesters and hunters from wasting the natural resources. You can plant and trade the Agarwood in Malaysia and also export the Agarwood.

You have to be aware of some protection rules of the Malaysian government to protect the natural resources. If you breach government protection laws, this may cause penalties and damages from the Malaysian government’s legislative authorities.


Agarwood is a unique resource globally and has a considerable value in global and some domestic markets. Many countries make legislation to protect this natural resource.

Suppose you are dealing or want to trade the Agarwood in your domestic market or international market. You have to follow the legal protocols of Agarwood protection.

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Because it is a rare wood in the forests and its supply can’t be meet by plantations. If you want to invest in Agarwood, then it is advisable to invest your resources in the Agarwood tree plantation.  Because the demand for Agarwood is continuously increasing and supply is very limited concerning its need.

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