Gaharu, the fragrant resin which resides deep within the heartwood of certain tree species, is one of Malaysia's most prized natural resources.First traded globally 2,000 years ago, the aromatic treasure is today feeding an industry worth millions in US dollars.
Malaysia, together with Indonesia, form the biggest suppliers to markets like the United Arab Emirates (UAE), Singapore, Taiwan, Vietnam and Saudi Arabia. Most of our exports are wild agarwood or gaharu, as it is locally known. This highly-scented resin is formed naturally when a "sick" tree, usually of the karas species, heals from a fungal infection.
Some claim that the infection sets in after lightning strikes the karas, or Aquilaria tree. Others say it's the doing of animals -- the clawing of tigers, pecking of birds, or nesting of ants inside the trunk. Whatever the circumstances, it remains one of the world's greatest mysteries.
Prized the world over for centuries, gaharu has had its usages recorded far and wide since the days of the Pharaohs.
Today, hundreds of tonnes of gaharu are traded each year, involving at least 18 countries. It is used as medicine, fragrance, food flavouring and gifts, and also in cosmetics and religious rituals.
It could fetch anything from RM80 to over RM20,000 a kilogramme, depending on the grade.
The country has never experienced a "gaharu craze" as intense as in the last few years, says Datuk Dahlan Taha, president of a local gaharu traders association called Pengharum.
"Gaharu incense became extremely popular in Japan, Taiwan and Hong Kong five years ago because of its natural properties. And over the years, demand from the UAE has been escalating. "That was when Malaysian traders stepped up their production to meet those demands."
In fact, half of the declared volume in international trade in 2005 came from Malaysia, says a report by wildlife trade monitoring group, TRAFFIC. Our official export figure stood at RM56 million last year, but traders could well be making many times the amount due to the high price gaharu fetches when it goes out into the international market.
World export in 2007 was after all, valued at a staggering RM650 million. This good run, however, could be short-lived.
Experts have warned that the country's status as a sustainable forest management advocate could be severely challenged if Malaysia failed to address mounting threats undermining its wild gaharu population.
TRAFFIC's report Wood for the trees: A review of the Agarwood trade in Malaysia has revealed that illegal harvesting and a lack of effective management of much of the legal harvest are major causes for concern.
Soaring demand has led to rapidly diminishing stocks in the wild, rising prices and concerns over future supplies.
Today, seven out of 18 agarwood-producing tree species found in Malaysia are at risk of global extinction.
Even though the trade is regulated through a system of permits by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), and with Malaysia capping its export quota at no more than 200,000kg a year since 2007, it is believed that more of the aromatic wood is leaving the country through illegal means.
Illegal harvesters entering protected Malaysian forests operate in a highly-organised manner, giving rise to speculations that it's not the work of mere individuals, says Noo rainie Awang Anak, co-author of the report.
"These collectors roam the jungle for up to six months, felling and killing karas trees and poaching wildlife. "Every 30 days or so, they will meet a middleman at a specific location to trade their catch with daily supplies. "It hints at a syndicate-operated business."
Despite almost 200 arrests between 1992 and 2005, there appears to have been no decline in the level of illegal harvest in Malaysia, the report says.
Just four months ago, enforcement agencies raided a jetty in Pulau Banding, Perak, and seized 2,000kg of gaharu which was one of the biggest seizures coming out from the Belum-Temenggor forests.
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