Malaysia is one of the countries which is rich in its flora and fauna bio-diversity. Malaysian forest products have been exploited since ancient times for its high economic values. One of these high economic value products is agarwood. Thymelaeacea is one medium-size family tree where it is estimated to consist of 50 genera and 900 species of which many can be found in Africa, Australia and Asia. Most species of Aquilaria in Thymelaeaceae family produced agarwood or ‘gaharu’. Aquilaria malaccensis is a species of the highest recorded number of planting by karas tree farmers and known as the primary producer of agarwood in Malaysia. Agarwood is non timber forest product it is one of the precious wood on earth and prized for its rich and wonderful fragrance. Agarwood is formed due to the phathological process as respond to fungal infection or chemically stimulated. This paper seek to understand in general the type of karas trees species most favoured by karas farmers and to know what other similar species that are capable of producing resin for gaharu products. This research is to review the natural process of producing gaharu and its importance to the diverse related industries. This research also found the high commercial value and its potential for further development
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