Agarwood investment is not something new in Asia, as agarwood is a niche business, many investment company or plantation company make full use of agarwood's high price and secretive image to lure investors into putting their hard earn money with them. So is Agarwood investment a good investment to invest in rather than those products offered by your bankers?

I shall share my own personal views and do take it with a pinch of salt. In the market, especially in countries like Thailand and Vietnam are among the very first to start this investment product, some have failed and some are still doing ok. In Malaysia and Singapore, many of these agarwood plantation companies are doing their best to sell you their trees. Personally i have been to many of their agarwood investment seminasr, talked to their Relationship managers, directors and CEO. Below are my personal insights and may not be true.

How Agarwood Investment Company works
There are alot of big and mature agarwood trees in thailand, Cambodia and Vietnam, why do they come to Malaysia to grow? Part of their global expansion plan? Maybe. Some of these agarwood plantation company are simply middle man, they contacted those agarwood plantation owners and took over their plantation (Without paying them, maybe just a small deposit) They will then use the owner's trees and sell to the investors. So the money is now with the company, leaving the plantation owners and investors praying hard for their dollars. What is their secret recipe? It will be their inoculation technology. (Getting very common nowdays to get agarwood resin as compared to early days)

How cultivated Agarwood resin are form
Agarwood resin are formed when you apply inoculation to them and usually it takes around 2 year before you harvest the trees for oil distillation or wood chips. From seedlings to mature trees suitable for inoculation, that's five years, plus another two years of inoculation and agarwood resin formation, it will be 7 years of wait.

How they promise to sell your harvested agarwood products?

What should we do next for our cultivated agarwood products? Well, bigger agarwood investment company will set up their own perfume boutique and distillery factory, some will show you contract that they have ready buyers for medicine or perfume usage. Sounds good and looks very promising. Is it for real? (Or their brothers are buying it?)


Why first batch of investor always win like MLM

We all know about those MLM and Pyramid scheme, the first batch of customers usually manage to get their money back and comes with handsome profits. Why do we need to pay them handsomely? We need them to share about this investment with their relatives and friends, word of mouth marketing and also to show the potential customers our track records.

Beware of high and handsome returns of Agarwood investment, you need to check yourself against the risk you are in and whether you do know about agarwood. Be sure to check the contract and read carefully, with numbers to back you up. Do not buy into the beautiful words of the consultant.(Or that beautiful customer relationship lady :)


Agarwood Investment
Some agarwood investment companies have approached me in featuring them in my website but for the benefits of the readers, i feel that i should write it in a much balance and non bias way to provide an insights into the current Agarwood Investment market.

Readers are welcome to write in to me at info@agarwood.com.sg for more discussion.