Friday January 21, 2011
The Star
LABIS: Swiftlet breeding premises must have a computer chip detailing their locations so that the authorities can identify them if the public lodges complaints about noise and health pollution.
Deputy Agriculture and Agro-based Industries Minister Chua Tee Yong said the tracking system, which was imposed following the introduction of the National Swiftlet Industry Guidelines approved by the Cabinet recently, would enable the ministry to track them via GPS (global positioning system).
“It will be difficult to locate the premises if the chip is not installed because many do not have details of their addresses, including road names.
“The ministry has received many complaints from the public.
“They are worried about the impact of these premises on their health.
“Such places can create environment and noise pollution, too,” he said after closing a swiftlet industry seminar yesterday.
Chua said swiftlet breeders in Negri Sembilan had started to install the chip and he hoped all industry members would follow suit in the next three years.
“Malaysia’s current export of bird’s nest is expected to reach RM5bil by 2020 and it is important that the industry be regulated to meet all the requirements to allow healthy growth,” he added.
Chua said swiftlet operators must also seek certification from the Veterinary Services Department before they could export their produce.
He added that China, one of the largest importers of bird’s nest from Malaysia, wanted regulations to be in place to ensure proper product quality control was maintained.
Chua said the guidelines also covered other aspects like the location of premises, processing of bird’s nest, importing and exporting procedures, and the creation of environment-friendly premises.
Friday, January 21, 2011
Monday, January 17, 2011
Sarawakians going into swiftlet farming in a big way
Monday January 17, 2011
The Star
By JACK WONG
jackwong@thestar.com.my
KUCHING: Sarawakians are flocking to the lucrative swiftlet farming business as more and more bird houses are being set up in the state.
Sarawak Bird's Nest Suppliers Association secretary Colin Wong Chung Onn said there was an estimated 5,000 swiftlet houses statewide with many more under construction.
“The number of swiftlet houses has more than doubled compared with a year ago,” he told StarBiz.
About 60% of these houses are found in the Mukah and Sarikei divisions in central Sarawak mostly along the coastal areas.
Unprocessed swiftlet nests have a market price of between RM3,000 and RM5,000 per kg compared with at least RM7,000 per kg for processed nests.
Unlike Peninsula Malaysia, Sarawak is a late starter in commercial swiftlet farming.
It is learnt that the state authorities, in consultation with the industry players, are drafting comprehensive guidelines to regulate the development of the industry.
Acting on environmental and health concerns, the state authorities had investigated more than 400 illegal farms last year, said Sarawak Assistant Minister for Planning and Resource Management Naroden Majais.
He said the construction of swiftlet farms was being closely monitored to prevent illegal operations.
Naroden said two licences were needed for commercial swiftlet farming - one to construct the building for the swiftlets to nest and the second for the rearing of the birds.
Some 250 licences to construct buildings and a handful to rear the birds have been approved.
Wong said big-time investors were constructing double or three-storey concrete shophouses to rear the swiftlets while the smaller ones, like farmers and fishermen, were building wooden houses.
Unoccupied or under-utilised shophouses and residential houses have been converted into swiftlet farms.
He said it would cost about RM400,000 (excluding land), to build a three-storey shophouse (36ft x 76ft) for swiftlet farming.
Sarawak's first swiftlet eco-park, a RM40mil joint-venture between state Economic Development Corporation (SEDC) and Borneo Resources Synergy Sdn Bhd is expected to be ready in Balingian, Mukah division within the Sarawak Corridor for Renewable Energy by next year.
The park will have 40 three-storey units and 15 three-storey bungalow units.
The SEDC has been tasked by the Sarawak government to spearhead the development of swiftlet farming on a well-planned, sustainable and eco-friendly manner.
Similar eco-parks have been planned for other parts of the state.
Wong said some pioneer swiftlet houses in Paloh, Mukah division could each produce up to 3kg of swiftlet nests a month.
“Unprocessed swiftlet nests fetch a market price of between RM3,000 and RM5,000 per kg compared with at least RM7,000 per kg for the processed nests.”
Some of the raw nests are being sold by middlemen to Indonesia, Singapore and Hong Kong.
He said based on a conservative estimate of the 5,000 bird houses producing an average 0.5kg of nests a month, this would mean a yearly production of 3,000kg. At an average market price of RM3,500 per kg, it would generate RM10.5mil per annum for the Sarawak economy.
Sarawak's production of swiftlet nests, Naroden said was 2,854kg last year, up from 2,095kg in 2008.
For the first 10 months of last year, 1,757kg valued at RM7mil were produced.
Naroden said China was the biggest market for edible swiftlet nests, followed by Singapore and Peninsular Malaysia.
Wong said the production of swiftlet nests from caves, like Niah Cave in Miri, had been on the decline over the years because of over-harvesting.
Although swiftlet farming is potentially lucrative, he said there were investors who had not been successful in their ventures due to several factors.
“Choosing the right location to site the swiftlet houses is vital, otherwise it will take a longer time to attract the birds.
“Other important factors are the design and conditions, like temperature and humidity, of the houses,” he added.
According to an investor, the returns from successful swiftlet farming was comparatively higher than most businesses.
He said a two-storey swiftlet house (20ft x 60ft which costs between RM250,000 and RM300,000 to build) could produce between 36kg and 48kg of nests a year (worth between RM144,000 and RM192,000 based on RM4,000 per kg) from the fourth year of operation.
“Once in operation,it will take at least 18 months for the first collection of the nests. Production will gradually increase with more swiftlets nesting,” he added.
For the most successful operator, it would take about five years to fully recover the costs to build the swiftlet houses and related facilities, adding that from then on, the profits would be high.
Saturday, January 15, 2011
Guidelines on swiftlet farming being drawn
Jan 25, 2011
The Starg
SANDAKAN: Sabah is preparing policy guidelines for swiftlet farming in the state following a decision last April to ban the activity in major urban centres.
State Resource Development and Information Technology Minister Datuk Dr Yee Moh Chai said the guidelines were being drawn up.
He said this during a Chinese New Year walkabout at Bandar Ramai Ramai by Parti Bersatu Sabah leaders recently.
The minister was replying to a question from New Sabah Times on the existence of swiftlet farming activities in urban areas despite the ban.
To another question whether the ban was in force, Yee said he was not aware of it as the guidelines for bird’s nest farming in the state was being drawn.
Last April, Dr Yee announced the state government’s ban on swiftlet farming in urban centres statewide was for environmental, health and cleanliness purposes.
Friday, December 31, 2010
No new permits for swiftlet breeding in Kajang
Friday December 31, 2010
The Star
By OH ING YEEN
ingyeen@thestar.com.my
THE Kajang Municipal Council (MPKj) will not approve new applications for swiftlet breeding in commercial and residential areas until the Selangor government’s guidelines are drawn out, council president Datuk Hassan Nawawi Abdul Rahman said.
Councillor S.T. Chandramohan added that no action would be taken against existing swiftlet breeders.
“However, under the council’s Street, Drainage and Building Act, breeding of animals is not allowed in commercial and residential areas.
“Under the same Act, swiftlet breeders in commercial and residential areas are also at fault for the misuse of premises,” Chandramohan said.
On the issue on under-performing contractors, he said although a contractor is blacklisted, he might apply for jobs through another company.
“The council’s new policy is that when a particular contractor does not perform, he should not be given new projects,” he said.
It was also highlighted at the meeting that a stop-work order was issued to the owner of the Hulu Langat MCA branch building.
“We received complaints that illegal extensions were built and the council’s building unit have verified this. They applied for a fourth floor to be added and it was rejected for several reasons but they continued building it. They will have to demolish it,” Chandramohan said.
He added that until now the Department of Irrigation and Drainage (DID) has yet to approve the building plans as this did not follow requirements.
“DID advised them to strengthen the river banks but instead of doing that, one part of the wall has encroached the river.”
Kajang assemblyman Lee Kim Sin added that this affected the river flow.
Chandramohan also pointed out that a stop-work order was issued earlier because they had built a substation in the car park.
Meanwhile, in response to the state’s decision to ban the 1Malaysia logo, the council is covering those found at bus stops in the municipality.
“We will place bus schedules over the logo,” Hassan Nawawi said.
It was also announced at the meeting that upgrading work for 96 bus stops have been completed.
Funds for the project amounting to RM2.3mil were allocated by the Federal Government.
The Star
By OH ING YEEN
ingyeen@thestar.com.my
THE Kajang Municipal Council (MPKj) will not approve new applications for swiftlet breeding in commercial and residential areas until the Selangor government’s guidelines are drawn out, council president Datuk Hassan Nawawi Abdul Rahman said.
Councillor S.T. Chandramohan added that no action would be taken against existing swiftlet breeders.
“However, under the council’s Street, Drainage and Building Act, breeding of animals is not allowed in commercial and residential areas.
“Under the same Act, swiftlet breeders in commercial and residential areas are also at fault for the misuse of premises,” Chandramohan said.
On the issue on under-performing contractors, he said although a contractor is blacklisted, he might apply for jobs through another company.
“The council’s new policy is that when a particular contractor does not perform, he should not be given new projects,” he said.
It was also highlighted at the meeting that a stop-work order was issued to the owner of the Hulu Langat MCA branch building.
“We received complaints that illegal extensions were built and the council’s building unit have verified this. They applied for a fourth floor to be added and it was rejected for several reasons but they continued building it. They will have to demolish it,” Chandramohan said.
He added that until now the Department of Irrigation and Drainage (DID) has yet to approve the building plans as this did not follow requirements.
“DID advised them to strengthen the river banks but instead of doing that, one part of the wall has encroached the river.”
Kajang assemblyman Lee Kim Sin added that this affected the river flow.
Chandramohan also pointed out that a stop-work order was issued earlier because they had built a substation in the car park.
Meanwhile, in response to the state’s decision to ban the 1Malaysia logo, the council is covering those found at bus stops in the municipality.
“We will place bus schedules over the logo,” Hassan Nawawi said.
It was also announced at the meeting that upgrading work for 96 bus stops have been completed.
Funds for the project amounting to RM2.3mil were allocated by the Federal Government.
Wednesday, December 22, 2010
Temporary licences for swiftlet farms
Wednesday December 22, 2010
The Star
By ELAN PERUMAL
elan@thestar.com.my
OPERATORS of swiftlet farms in Selangor have been asked to apply for temporary licences from their respective local authorities.
The Selangor Government has decided to legalise swiftlet farms in a temporary move while awaiting the standard guidelines to be ready.
State local government committee chairman Ronnie Liu said they were finalising the details of the licensing conditions.
He said the standard guidelines would be ready in six months.
He added that the move was necessary for the local authorities to collect licensing fee from the operators.
“The swiftlet operators have been operating farms without paying any form of licensing fees and this has resulted in a loss of income for the local authorities.
“Now, the local authorities will be able to get some revenue from the swiflet breeders.
“We are also working closely with the Veterinary Department on the details of the licensing conditions,’’ he said.
Liu said applications from those operating at high-density areas, including towns, would not be entertained.
“However, consideration will be given to those who are operating at remote areas,’’ he said.
The Star
By ELAN PERUMAL
elan@thestar.com.my
OPERATORS of swiftlet farms in Selangor have been asked to apply for temporary licences from their respective local authorities.
The Selangor Government has decided to legalise swiftlet farms in a temporary move while awaiting the standard guidelines to be ready.
State local government committee chairman Ronnie Liu said they were finalising the details of the licensing conditions.
He said the standard guidelines would be ready in six months.
He added that the move was necessary for the local authorities to collect licensing fee from the operators.
“The swiftlet operators have been operating farms without paying any form of licensing fees and this has resulted in a loss of income for the local authorities.
“Now, the local authorities will be able to get some revenue from the swiflet breeders.
“We are also working closely with the Veterinary Department on the details of the licensing conditions,’’ he said.
Liu said applications from those operating at high-density areas, including towns, would not be entertained.
“However, consideration will be given to those who are operating at remote areas,’’ he said.
Tuesday, November 30, 2010
Action on swiftlet farms
Tuesday November 30, 2010
By ANDY CHUA
andychua@thestar.com.my
THE Sibu Municipal Council (SMC) has issued a warning to shophouse and residential property owners that it will take action against those who operate swiftlet farms in their property.
Chairman Datuk Tiong Thai King said at SMC’s full council meeting yesterday that as swiftlet farming was a lucrative business, those involved in the business should not violate the law by operating such farms in their premises.
Tiong: SMC will take action on illegal swiftlet farming.
The council, he said, had received many complaints about swiftlet farming causing serious environmental issues, in particular noise and bird droppings.
“The council will take action on the complaints under the Public Health Ordinance even though the licensing of the farms is under the jurisdiction of the Forest Department,” said Tiong.
In another development, Tiong said during a few cleaning campaigns organised by non-government organisations (NGOs), he had personally discovered that littering and illegal dumping of waste were still rampant especially in residential areas.
He said while the council had sweepers to clean up the town centre, commercial centres and protocol roads daily, it hoped that residents would also take care of their own surroundings, in particular road verges in their neighbourhood where people tend to litter.
“If everyone starts to pick up litter from the road verges in front of their houses, it will definitely make a lot of difference to the cleanliness of their neighbourhood,” he said.
Tiong also posed a challenge to NGOs to extend their cleaning campaigns beyond merely picking up litter and wastes by including education. He suggested that they distributed educational leaflets and give talks to residents on the importance to have a clean environment.
He said this was particularly important in view of the increasing cases of dengue in the town this year.
By ANDY CHUA
andychua@thestar.com.my
THE Sibu Municipal Council (SMC) has issued a warning to shophouse and residential property owners that it will take action against those who operate swiftlet farms in their property.
Chairman Datuk Tiong Thai King said at SMC’s full council meeting yesterday that as swiftlet farming was a lucrative business, those involved in the business should not violate the law by operating such farms in their premises.
Tiong: SMC will take action on illegal swiftlet farming.
The council, he said, had received many complaints about swiftlet farming causing serious environmental issues, in particular noise and bird droppings.
“The council will take action on the complaints under the Public Health Ordinance even though the licensing of the farms is under the jurisdiction of the Forest Department,” said Tiong.
In another development, Tiong said during a few cleaning campaigns organised by non-government organisations (NGOs), he had personally discovered that littering and illegal dumping of waste were still rampant especially in residential areas.
He said while the council had sweepers to clean up the town centre, commercial centres and protocol roads daily, it hoped that residents would also take care of their own surroundings, in particular road verges in their neighbourhood where people tend to litter.
“If everyone starts to pick up litter from the road verges in front of their houses, it will definitely make a lot of difference to the cleanliness of their neighbourhood,” he said.
Tiong also posed a challenge to NGOs to extend their cleaning campaigns beyond merely picking up litter and wastes by including education. He suggested that they distributed educational leaflets and give talks to residents on the importance to have a clean environment.
He said this was particularly important in view of the increasing cases of dengue in the town this year.
Saturday, November 27, 2010
Investing in less well-known asset classes
Saturday November 27, 2010
By JEEVA ARULAMPALAM
jeeva@thestar.com.my
TO part with one's hard-earned money is painful but to lose it completely in an investment gone awry is heartbreaking. With various investment tools and schemes coming to market, investors are inundated with choices.
While many investors opt for more well-known asset classes such as equities, bonds, properties and money markets, there are also those who are game to try a less popular option interest schemes.
According to the Companies Commission of Malaysia, interest schemes have been in existence for more than 20 years in Malaysia.
The commission says that properly registered and well-managed interest schemes could play a major role in contributing to the growth of the Malaysian economy and provide an alternative mode of fund raising through participation in a variety of business models.
There are seven types of registered interest schemes in Malaysia the sale of memberships by golf clubs, recreational clubs, marinas, time-sharing, fitness clubs, the sale of license for use of urns and burial plots by memorial parks, and the sale of growers' plot in share-farming schemes.
Local investors may be familiar with two registered share-farming schemes Country Heights Grower Scheme and Golden Palm Growers Scheme which allow investors to reap returns by purchasing oil palm plantation plots.
The latest edition to join the two existing share-farming schemes is Malaysia's first legalised edible-birdnest Swiftlet Ranching Share Farming Interest Scheme by Swiflet Eco Park Bhd.
According to the scheme's prospectus dated Sept 9, the management company plans to set up an interest scheme for a 35 year duration that involves edible-birdnest swiflet ranching and offer units for sale to the public. Some 2,060 interest scheme units will be sold to the public at RM10,000 per unit.
The company has been conducting seminars across Malaysia on its interest scheme. The current prospectus will expire next March and a new prospectus will be issued every six months.
Swiftlet Eco Park is part of a holding company that is involved in the planning, development, construction and marketing of customed-built and licensed swiftlet farms.
According to the group's website, its first project in Manjung, Perak was developed in collaboration with the Perak State Development Corp. The group is developing 14 other similar projects all over Malaysia and targets to complete 25 projects with 1,000 licensed buildings over the next three years at a gross development value of RM500mil.
Aside from upstream activities of swiflet ranching, the group is also involved in the downstream business such as the collection and buying of raw bird's nest and its processing. It also does manufacturing, branding, wholesale, retail, direct selling, setting up chain stores and research and development.
The company's chief executive officer CH Tan tells StarBizWeek that the group is looking at an integrated approach of upstream and downstream business, given the global demand for the edible swiftlet nest industry.
It is estimated that there are some 50,000 (bird) buildings in this country and that is expected to double by 2015. The raw unprocessed edible-birdnest price ranges between RM4,000-RM5,000 per kg while the processed price ranges from RM11,000-RM19,000 per kg, he says.
It has been reported that Malaysia is looking to table a swiftlet industry guideline in Cabinet to provide a framework for the industry to operate in a sustainable manner and place the country ahead of leading bird's nest producers like Indonesia and Thailand.
Tan says the Swiftlet Ranching Share Farming scheme, which has drawn interest from foreign and local investors alike, has appointed PB Trustee Services Bhd as the trustee for investors' monies. The appointment of the trustee was verified by StarBizWeek.
The monies will be held by the trustee during the cooling-off period and upon release of the funds for the construction of the bird buildings, the land title, grant and buildings will be kept under the trustee, Tan adds.
The prospectus also highlights the various risks associated with the swiftlet industry such as the changes in world demand for edible birdnest, price fluctuations of edible birdnest, threat of bird flu and other disease outbreaks and changes in the regulatory and economic conditions.
As with all investments, financial services practitioners do caution investors to carry-out their own checks before investing.
Understandably, there are those who are also wary of such schemes. Some financial planners contacted say they would prefer to stay clear from interest schemes that pose high risk and have no means of safeguarding investors' capital.
It is important for potential investors to do some homework, as in all other forms of investments.
Among the fundamentals investors should check for include an investment's legitimacy, the underlying business model, the risks, whether their principal is intact and/or repaid, guarantees, authorities' approvals, the underlying founders/promoters, other competition or such schemes in the market, says NewAsia Capital Sdn Bhd associate director Sherilyn Foong.
Foong says that investors need to realise that with any investment scheme, there is no such thing as zero risk for high returns.
There are many such schemes with different underlying income-generating assets or businesses in the market. Investors should look at the scheme to detect any ponzi-like or pyramid features, she adds.
Her advice is simple if the investor is happy with the commensurate risks and returns as well as the potential worst case scenario, then the investor can proceed to invest.
By JEEVA ARULAMPALAM
jeeva@thestar.com.my
TO part with one's hard-earned money is painful but to lose it completely in an investment gone awry is heartbreaking. With various investment tools and schemes coming to market, investors are inundated with choices.
While many investors opt for more well-known asset classes such as equities, bonds, properties and money markets, there are also those who are game to try a less popular option interest schemes.
According to the Companies Commission of Malaysia, interest schemes have been in existence for more than 20 years in Malaysia.
The commission says that properly registered and well-managed interest schemes could play a major role in contributing to the growth of the Malaysian economy and provide an alternative mode of fund raising through participation in a variety of business models.
There are seven types of registered interest schemes in Malaysia the sale of memberships by golf clubs, recreational clubs, marinas, time-sharing, fitness clubs, the sale of license for use of urns and burial plots by memorial parks, and the sale of growers' plot in share-farming schemes.
Local investors may be familiar with two registered share-farming schemes Country Heights Grower Scheme and Golden Palm Growers Scheme which allow investors to reap returns by purchasing oil palm plantation plots.
The latest edition to join the two existing share-farming schemes is Malaysia's first legalised edible-birdnest Swiftlet Ranching Share Farming Interest Scheme by Swiflet Eco Park Bhd.
According to the scheme's prospectus dated Sept 9, the management company plans to set up an interest scheme for a 35 year duration that involves edible-birdnest swiflet ranching and offer units for sale to the public. Some 2,060 interest scheme units will be sold to the public at RM10,000 per unit.
The company has been conducting seminars across Malaysia on its interest scheme. The current prospectus will expire next March and a new prospectus will be issued every six months.
Swiftlet Eco Park is part of a holding company that is involved in the planning, development, construction and marketing of customed-built and licensed swiftlet farms.
According to the group's website, its first project in Manjung, Perak was developed in collaboration with the Perak State Development Corp. The group is developing 14 other similar projects all over Malaysia and targets to complete 25 projects with 1,000 licensed buildings over the next three years at a gross development value of RM500mil.
Aside from upstream activities of swiflet ranching, the group is also involved in the downstream business such as the collection and buying of raw bird's nest and its processing. It also does manufacturing, branding, wholesale, retail, direct selling, setting up chain stores and research and development.
The company's chief executive officer CH Tan tells StarBizWeek that the group is looking at an integrated approach of upstream and downstream business, given the global demand for the edible swiftlet nest industry.
It is estimated that there are some 50,000 (bird) buildings in this country and that is expected to double by 2015. The raw unprocessed edible-birdnest price ranges between RM4,000-RM5,000 per kg while the processed price ranges from RM11,000-RM19,000 per kg, he says.
It has been reported that Malaysia is looking to table a swiftlet industry guideline in Cabinet to provide a framework for the industry to operate in a sustainable manner and place the country ahead of leading bird's nest producers like Indonesia and Thailand.
Tan says the Swiftlet Ranching Share Farming scheme, which has drawn interest from foreign and local investors alike, has appointed PB Trustee Services Bhd as the trustee for investors' monies. The appointment of the trustee was verified by StarBizWeek.
The monies will be held by the trustee during the cooling-off period and upon release of the funds for the construction of the bird buildings, the land title, grant and buildings will be kept under the trustee, Tan adds.
The prospectus also highlights the various risks associated with the swiftlet industry such as the changes in world demand for edible birdnest, price fluctuations of edible birdnest, threat of bird flu and other disease outbreaks and changes in the regulatory and economic conditions.
As with all investments, financial services practitioners do caution investors to carry-out their own checks before investing.
Understandably, there are those who are also wary of such schemes. Some financial planners contacted say they would prefer to stay clear from interest schemes that pose high risk and have no means of safeguarding investors' capital.
It is important for potential investors to do some homework, as in all other forms of investments.
Among the fundamentals investors should check for include an investment's legitimacy, the underlying business model, the risks, whether their principal is intact and/or repaid, guarantees, authorities' approvals, the underlying founders/promoters, other competition or such schemes in the market, says NewAsia Capital Sdn Bhd associate director Sherilyn Foong.
Foong says that investors need to realise that with any investment scheme, there is no such thing as zero risk for high returns.
There are many such schemes with different underlying income-generating assets or businesses in the market. Investors should look at the scheme to detect any ponzi-like or pyramid features, she adds.
Her advice is simple if the investor is happy with the commensurate risks and returns as well as the potential worst case scenario, then the investor can proceed to invest.
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