The event was witnessed by Science, Technology and Innovation Minister Datuk Seri Dr Maximus Ongkili and SLDB Chairman Datuk Sapawi Ahmad.

The memorandum was signed by Nuclear Malaysia's Director-General Datuk Dr Daud Mohamad and SLDB's General Manager Jhuvarri Majid.

Under the memorandum, Nuclear Malaysia will provide the technical expertise to ensure the agarwood seeds to be cultivated are of high quality and that the production of agarwood oil products are capable of meeting market demands.

It will also organise the cultivation of agarwood at a 40-hectare site in Kalas in Nabawan and provide the inoculation that induces the resin in agarwood.

The agarwood industry development project in Nabawan is believed to be the future model for Sabah's overall agarwood industry development.

Speaking at the event, Ongkili said he believed the collaboration would reap tremendous success following SLDB's vast experience in implementing large-scale agricultural projects and Nuclear Malaysia's expertise in technology-based community projects.

To this end, Ongkili urged government agencies, research institutions and corporate organisations to jointly collaborate in project implementations which would set off high and immediate impact to communities and grassroots societies.

Jhuvarri said the processing and extraction of the plant would provide local collectors a chance to sell the agarwood locally and get paid the true market value, while at the same time create a new economic activity for Nabawan.