KUALA LUMPUR, Sept 13 -- Etlingera Sdn Bhd, a company in Malaysian Technology Development Corporation (MTDC) ecosystem, has signed a joint-venture agreement with Permint Plywood Sdn Bhd (PPSB) with the potential of making further inroads into the agarwood industry which is worth RM8 billion a year.
MTDC chief executive Datuk Norhalim Yunus said the collaboration would create opportunities for small-scale agarwood growers to export their products to international markets.
“Malaysia now has about three million agarwood trees. By using Etlingera's technology, we can produce quality agarwood,” he told a press conference here today.
PPSB is a subsidiary of Terengganu’s state-owned Golden Pharos Bhd (GPB).
Meanwhile, GPB chief executive officer Datuk Nadzarudin Abdul Razak said under the agreement, PPSB would supply 480 karas (agarwood) mature trees, while Etlingera would be responsible for inoculation, harvesting, transportation, and extracting agarwood pure oil.
“Based on the agreement, profit sharing between Etlingera and PPSB was finalised at 50-50 per cent," he said.
PPSB currently has planted about 100,000 agarwood on a 100-acre karas farm in Merchang, Marang, Terengganu.
Etlingera chief executive officer Suhaimi Samsudin said the inoculum generated from a research conducted by University Putra Malaysia has been tested and proven to produce high-quality agarwood oil that has been used for the export market.
He added that the technology has also been used in countries such as Indonesia, Thailand, Cambodia and Laos, while agarwood pure oil and chunk were already available in markets such as Oman, Qatar, UAE, Kuwait, China, Bahrain and France.
“The market value of one litre of agarwood pure oil is RM80,000. The PPSB joint-venture project is expected to yield RM1.6 million in 18 months,” he said.