AFG Agarwood (“AFG”) is a Malaysian Sdn Bhd plantation management company growing and developing Agarwood plantations in Malaysia under the Interest Scheme Act of 2016. The scheme is approved and regulated by SSM Malaysia www.ssm.com.my in this article and administered by TMF Group International Trustees. www.tmf-group.com

Agarwood is the resinous heartwood that comes from the Aquilaria tree. Aquilaria is a fastgrowing subtropical forest tree and the wood from this tree, once properly managed and processed, is used to produce oil known as “OUD” oil – this is a key ingredient in some of the most exclusive and expensive fragrances in the world, such as Calvin Klein and Hugo Boss.

The current global market for OUD oil and other related Agarwood products is estimated to be in the range of over USD 12 billion per annum and is ‘growing rapidly’.

Despite this market size the demand for Agarwood and OUD oil is far greater than supply on a worldwide basis such that the price of this commodity has reached exorbitant levels, making it more expensive than gold.

Today due to very strict growing constraints, Agarwood farmers can only supply 20% of the world’s Agarwood demand, fueling its meteoric price increase year after year.

AFG Agarwood has the right strategy and capability to develop Malaysia’s Agarwood sector and supply the growing needs of the global market.

We are already growing Aquilaria trees within Indonesia and Malaysia and are proud to have developed and introduced our Plantation Management System into Malaysia.This unique system, a first within Malaysia, ensures that each tree is bar-coded so that the tree’s history can be tracked in line with CITES protocol throughout its entire life. In addition the system monitors weather conditions, tree health, pest control and soil fertilization that will enable better and improved plantation management. The system provides AFG with its own dedicated Centre of Excellence which is unique in Malaysia and possibly across the Asia region.

This plantation project will be strictly in accordance with the Interest Scheme Act 2016 and will permit AFG to sell these trees at this early stage to professional investors who in time upon harvesting after 7-8 years will receive attractive returns of circa 2.5 times the initial investment.

Product off-take agreements are in place and/ or are being negotiated such that the full allowance of trees to be sold to investors (max 70%), plus the residual company held trees (30%), will all be fully harvested and sold for the benefit of all stakeholders.

AFG has carried out meticulous planning, and based on its experience in Indonesia for the past 4 years of managing its Agarwood plantations there, is set to be a leader of its kind in Malaysia.