Plantation Ownership F.A.Q.

Plantation Ownership F.A.Q. 2019-01-26T05:37:02+00:00

Below you will find our most Frequently Asked Questions about our Johor, Malaysia Agarwood plantation ownership opportunity that offers 19.71% annualized returns. 

If you have any questions that are not listed below, please do not hesitate to Contact Us.

Please Note: The below F.A.Q. is valid for our Agarwood plantations in Johor, Malaysia only!


Q: Who is Plantations International?

Plantations International is a Malaysian, Kuala Lumpur based plantation and farm management company whose specialty is in providing sustainable agricultural and forestry “agroforestry” management services for its clients. Plantations International has clients ranging from private individuals to large land holders, we put teamwork, innovation and our passion for creating “Ethical & Sustainable Capital” at the heart of everything we do. 

Click Here to download our corporate overview which contains details on our key management.

Q: What EXACTLY is Agarwood and OUD Oil?

Agarwood is the “Heartwood Resin” of Aquilaria Tree. Plantations International uses proprietary steam distillation technology to extract the precious Oud Oil from the Agarwood. Oud Oil is used in 100’s of premium fragrances around the world such as Gucci, Armani and Versace well as countless other commercial and medicinal uses. Please Watch The Below Video, before you read the rest of the FAQ’s. The video will give you an in depth understanding of what exactly Agarwood and Oud Oil are and their current market demand.


Q: Is Plantations International allowed to sell Agarwood Investments by The Malaysian Government?

Yes, Plantations International  is fully authorized to sell Agarwood investments in Malaysia by the Companies Commission of Malaysia, The Suruhanjaya Syarikat Malaysia “SSM”. Click Here to download a copy of our SSM authorization.


Q: Why should I add Agarwood to my portfolio?

Due to its high margins and very low volatility, Agarwood and forestry in general is considered a very safe asset class. Forestry consistently outperforms most other asset classes such as stocks, bonds and even fixed deposits. Agarwood is by far the most valuable wood in the world. Demand for Agarwood and Oud Oil is 80% higher than current supply levels, making Agarwood a safe and secure asset class to add to your portfolio.

Q: Who are the main buyers and distributors of Agarwood and Oud Oil?

The main buyers and distributors of Agarwood and Oud Oil are…

  •  Hundreds of Fragrance Houses / Cosmetic Companies
  • Pharmaceutical companies and companies producing Traditional Chinese Medicines
  • Countless retailers mostly in the Middle East and Gulf States.
  • Agarwood chip and Oud Oil wholesalers

There is one Oud retailer in the middle east that has over 800 stores, Click Here to learn more.

Q: What is the global demand for Agarwood Products?

The current market for Agarwood derived products is worth over USD 12 Billion Annually and growing, with 12,000 kilograms of Oud Oil traded annually.

Q: Since Oud Oil is sold by the “Tola”, what exactly is a Tola a unit of measurement?

A Tola is a unit of measurement most commonly used in the measurement of commercial gold. A Tola is 12 grams.
(1 Tola = 12 Grams)

Q: How many Tolas of Oud Oil are my trees expected to yield on a per tree basis?

Statistically speaking each of your trees will yield 2-4 Tolas of Oud Oil by year 7, but since your trees are living, biological and constantly growing organisms, we cannot state the actual amount of Oud Oil that will be yielded on a per tree basis, but based on years of extensive research and experience we can accurately say that each of your trees will yield 2-4 Tolas of Oud Oil by year 7, making your average Oud Oil yield at 3 Tolas Per Tree.

Highest Yield Per Tree: 4 Tolas
Lowest Yield Per Tree:  2 Tolas
Average Yield Per Tree: 3 Tolas

Q: What is my minimum guaranteed price of Oud Oil that I will receive on per Tola basis?

Plantation International offers a minimum guaranteed price of of RM 1,300.  Since your trees are expected to yield an average of 3 Tolas Per Tree. Your expected returns are RM 3,900 on a Per Tree Basis, before harvest sales fees are deducted.

Q: What is my entry price and what kind of returns can I expect?

Your entry price is only RM 1,311 per tree and trees are sold in minimum blocks of 25, this means that 25 trees are only RM 32,775. Your expected annualized returns are 19.71% based on our guaranteed sales price of RM 1,300 per tola.

Q:  How is the annualized return rate of 19.71% calculated? It’s much  higher than what my bank is giving me.

Great Question! Lets take your initial purchase price of RM 131,100 for 100 trees as an example, at harvest time after the 20% harvest & sales commission fee is deducted, you will receive net returns of RM 312,000 this represents a net harvest profit of RM 180,900, once you deduct your initial purchase price of RM 131,100.

Your harvest profit of  RM 180,900 represents a 138% ROI (Return on Investment) on your initial purchase price. If you divide the 138% by 7 (for 7 years), you will get 19.71% as an average annualized rate of return.

Q: Why is the harvest cycle 7 Years? Can I harvest my trees early?

It takes a minimum of 7 years for the Aquilaria tree to produce a commercially viable level of marketable agarwood that is suitable for Oud Oil extraction. An early harvest is not recommended as your trees have not had sufficient time to produce a sufficient amount of agarwood to yield the expected 3 Tolas of Oud Oil per tree.

Q: Can I let my trees grow more to increase the quantity of Oud Oil that my trees will produce?

Yes, you can let your trees grow all the way till the end of your subscription agreement. On average the Oud Oil count in your trees is expected increase at a rate of 10% per year. You are under no obligation to harvest at year 7, you may select to harvest at any time between years 7 to 10.  Please see below table of harvest yields on yearly basis.

Q: What makes Agarwood so special and why is it so valuable?

Agarwood from the Aquilaria tree has been used by Christians, Muslims and Hindus alike in countless religious ceremonies since the beginning of recorded time. Legend has it that when Adam and Eve were banished from the Garden of Eden, they were allowed to take with them but one item. It was a branch from an Aquilaria tree, within which lay one of the most remarkable and valuable natural substances known to man.

It was mentioned in the bible that Nicodemus brought “a roll of myrrh and aloes” weighing about 100 Roman pounds, to be used in preparing for Jesus’ ascension in Heaven. The aloes brought by Nicodemus is Agarwood as referred to in the Hebrew Scriptures and Muslim Hadiths.

Agarwood has been revered by civilizations, religions and cultures for thousands of years for its health-giving properties and positive psychoactive effects.

Legal intervention was drastically required, and in 2004 CITES (The Convention on International Trade in Endangered Species) stepped in and gave the Agarwood an “Appendix 2” classification, listing it as endangered species, meaning that the trade was to be heavily controlled and regulated by the Malaysia Timber Industry Board (MTIB)

Q: Since Agarwood from the Aquilaria tree is currently listed as an endangered species, how does this affect me?

As long as your trees are not harvested from the wild, and are exclusively harvested from legal sustainable plantations and those plantations can provide chain of custody documentations like Plantations International can, your trees are 100% Malaysia Timber Industry Board (MTIB) Compliant.

Click Here to download a copy of our Malaysia Timber Industry Board  authorization.

Q: What kind of scientific team does Plantations International have backing it?

 Plantations International has  collaboration agreement for Agarwood development with the University of Kuala Lumpur,  Institute of Chemical & Bioengineering Technology (UniKL MICET), in Mallaca for the following…

  • To produce AAA Rated Oud Oil for the export markets.
  • To develop the highest quality inoculation and distillation methods that will limit wastage.
  •  To achieve a 100% Agarwood infection rate of all  Trees.
  • To provide Agarwood distillation facilities for local small scale farmers.
  • To share our research with Instiper and local small scale farmers.

Photo Gallery: Research facilities at University of Kuala Lumpur

Q: Where does Plantations International have Agarwood plantations?

Plantations International currently has fully owned and planted Agarwood plantations in Malaysia and Indonesia and has working plans for expansion into Thailand.

Q: Where exactly is “MY” plantation and trees located?

Your plantation and trees are located in the the town of kulai in state of Johor in Malaysia. Johor, a state in southern Malaysia is linked to Singapore by causeways and is known for its beaches, plantations and rainforests. The capital of Johor is Johor Bahru, and is the southernmost city in Malaysia.

Q: Can I visit my plantation in Johor? I would really like to see it.

Yes! In fact, we very highly encourage you to visit your plantation and see your trees. Just let us know of your desired visitation dates and we will make complimentary hotel arrangements for you and one guest at the Hilton in Johor Bahru . We will also arrange for you a guided tour of your plantation and our Agarwood research facilities at University of Kuala Lumpur.

Over 90% our plantation owners, once they have visited their plantation are so happy that they immediately increase their initial holdings, because they quickly realize that there are no safer returns in the markets today.

Photo Galleries

Agarwood Nursery in Johor

Agarwood Plantation in Johor – Must See!

Q: What if my Agarwood trees are destroyed or do not grow properly?

Firstly, due to the diligence and expertise of the Plantation International forestry management team, this is highly unlikely. To date we have had no instance of this. However, Plantations International guarantees that should any of your trees be damaged, become sick or die due to any of the below, Plantations International will replace them immediately for free from our own buffer stock, thus guaranteeing you a 100% harvest.

  • Fire
  • Lightning
  • Wild animal damage
  • Cyclone & Hurricane
  • Drought
  • Theft & Vandalism
  • Flooding
  • Pest and disease
  • Hail Damage

In order to mitigate all risk factors, rigorous assessment and due diligence of plantation sites are conducted annually. Each plantation is irrigated, fenced, and has 24 hours a day security and a on duty plantation  manager.

Q: How do I know how much Oud Oil is produced from my trees?

All plantation management duties are carefully recorded. Each individual tree is bar coded and has a unique identifier number, allowing us to document the trees diameter size throughout its growth cycle. Also, Plantations International carefully records the exact amount of Oud Oil distilled per tree. In addition, each client will receive an audited harvest statement certified by Plantations International.

Q: What are Plantations International’s fees at time of harvest?

Plantations International will deduct a 20% harvesting fee and  sales commission from your gross proceeds. 

Q: In which currency and in what method will I receive my harvest proceeds?

All harvest proceeds are paid within 30 days of Plantations International selling the harvested product from your trees, by default all harvest proceeds are by bank wire transfer in Malaysian Ringgit .

Q: Why does Plantations International offer plantation ownership opportunities to third parties and not just do it all themselves?

The board of directors of Plantations International has made an economically strategic decision to offer third party plantation ownership opportunities alongside our own tree stocks in order to accelerate our corporate growth and become the recognized market leader in the shortest time frame without incurring bank debt. We currently only offer one third of our trees in our third party plantation ownership programme, thus keeping two thirds of our trees for our own purposes.

Q: Can I transfer or sell my trees to a third party?

Yes, your trees are your exclusive private property, you may sell them or transfer them to anyone at any time without restrictions. If you wish to do this, please let know so we me assist you with the transfer documentation.

Q: What happens to my trees if I die or I become incapacitated?

Your trees are part of your estate and can be passed on to whoever you choose, just like your home. In the event of death or incapacitation.


Useful Links & Resources

Plantations International Photo Gallery

Plantations International Linkedin

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