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.

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.

‘Give us alternative site’

Surprise, surprise that swiftlet farmers are willing to relocate even if given new sites. Most likely these are new bh where there is not many birds. The established one will certainly find it impossible to move without losing all the birds.

Jackie

**********************************************************************************


Wednesday September 15, 2010
The Star


OPERATORS of swiflet farms in the heritage enclave in George Town are willing to relocate if the authorities identify a new location for them.

Association for Swiftlet Nest Industries (ASNI) president Carole Loh said there should be proper planning just like the relocation of hawkers and squatters.

“We are only requesting that we’re treated fairly in the relocation process,” she said when contacted yesterday.

She was commenting on the statement by state executive councillor Chow Kon Yeow that the state government would hold a meeting next week to work out a mechanism to implement the three-year grace period for swiftlet farms to move out of the George Town heritage enclave.

Chow said the meeting would involve ASNI, Penang Heritage Trust and other related organisations.

He was quoted as saying it was up to the state government to decide when the grace period would begin.

The issue of relocation arose after the National Council for Local Government had agreed on Sept 3 for swiftlet farms to move out of the Penang and Malacca heritage enclaves.

Loh said the operators were awaiting details on the relocation plan.

“It is almost impossible to move out without affecting the swiftlets as putting the birds in cages and moving them out is not the right way.

“Swiftlets will return to their nests as soon as they are released from the cage,” she said.

Potential RM2b yearly from S’wak swiftlets

Potential RM2b yearly from S’wak swiftlets


Borneo Post
by Churchill Edward
March 16, 2010, Tuesday



LUNDU: Sarawak has the potential to contribute up to RM2 billion to the country’s total yearly production of bird’s nest by 2020.

Malaysia as a whole produced 250 tonnes of bird’s nest (from 50,000 birdhouses) worth RM1 billion in 2008 alone.

Yesterday, Sarawak Economic Development Corporation (SEDC) chairman, Datuk Talib Zulpilip expressed optimism that the country would be able to produce an annual RM5 billion worth of bird’s nests with Sarawak contributing RM2 billion yearly by 2020.

When closing a swiftlet farming and marketing strategy course at Sematan community hall here yesterday, Talib said, “Malaysia, in 2008, produced 250 tonnes of swiftlet bird’s nests worth about RM1 billion which also involved 50,000 birdhouses.”

“It is our (government) hope that by 2020, the country would be able to produce a yearly RM5 billion worth of bird’s nests weighing 500 tonnes involving 100,000 birdhouses. The source of this information came from Federal Minister of Agriculture and Agro-based Industry Datuk Noh Omar,” said Talib who is also State Assistant Minister of Tourism and Heritage.

He said Bumiputera involvement in this industry is still low at less than 10 per cent, according to statistics in 2009.

“With such a scenario, Bumiputera involvement in this industry is still very low and lagging far behind compared with that of the non-Bumiputera sector which controlled about 90 per cent of the total industry. We hope local Bumiputera involvement will be greater after we (SEDC) provide training and courses to encourage their participation,” he stressed.

He said, with yesterday’s one-day course, folks in Sematan could see the potential of this industry and tap the golden opportunities afforded by it. He stressed that the industry is a real income generator.

A kilogramme of bird’s nests depending on its grade, could fetch RM4,500 to RM6,500 in the local market while the price could increase to between RM6,000 and RM12,000 (world market).

The highest the price per kilogramme has gone up is from RM12,000 to RM24,000, Talib said when pointing out that entrepreneurs have nothing to fear when it comes to business returns and turnover.

He said one can browse www.gemsb.voc.com to find out the details on farming and marketing of swiftlet bird’s nests.

However, he said, this industry would require a big capital outlay if one wants to start big and get handsome returns. Talib stressed that he was confident the capital issue could be overcome by engaging the assistance of government agencies.

As far as Bumiputera entrepreneurs are concerned, Talib said he hoped they would expand their businesses in the global arena instead of just being contented with local businesses.

Talib pointed out that rodents are potential pests of bird’s nests and that firecrackers are not only scary but could disturb the mating season of swiftlets.

Recently the Sarawak government had entrusted SEDC to set up a Swiftlet Birds Eco Park, according to a press statement delivered to the media during the closing ceremony.

The Eco Park will be the first of its kind in Sarawak and it is to be located at come from overhauling the university’s teaching activities to make graduates more commercially viable.

“Undergrad curricula will be revamped, in which information technology and sciences will include a component of business, so that from the beginning students think about how to turn technology into money. They will learn how to manage innovation, technology and services.

“It’s not like them doing an MBA per se, but having knowledge on bringing technology to market.”

On this note, UKM had also set up its vehicle Technology Transfer to turn R&D into products and businesses, as well as a Centre for Collaborative Innovation (CCI) together with the US-based Stevens Institute of Technology, both aimed at enhancing human capital development and creating innovations for wealth generation.

Similarly, Universiti Malaya (UM) had been forging direct ties between business and education, according to its vice-chancellor Ghauth Jasmon. He added that there was the need to develop an entrep­reneurial culture in Malay-sia towards capitalising its local skills to the fullest.

“The main challenge is Malaysian academics themselves. The culture is not there, as they are pure academics, and are content with research and teaching. They must be encouraged to be enterprising,” OBG cited Jasmon.

“While the culture may still be lagging somewhat, UM is moving forward by working with a Singaporean company to market and commercialise patents from some of the university’s research. In addition, the university has set up a Centre of Innovation and Commercialisation that facilitates its inventors and academicians to actualise their ideas, concepts and research products for viable commercialisation.”

Moreover, OBG underlined that under the leadership of Prime Minister Datuk Seri Najib Tun Razak, the government had made building this culture a top priority. In this respect, the government was initialising a series of reforms aimed at developing a higher-value and higher-skill economy that was on par with other high-income countries across a range of sectors.

The recent launching of this year’s Innovative Malaysia campaign highlighted this initiative, according to OBG.

In reference to the Prime Minister, OBG mentioned that the country needed intellectual input and the latest technology towards its goal to achieve a new economic model based on knowledge and innovation.

“The government initiative is timely,” said Universiti Putra Malaysia’s (UPM) Innovation and Commercialisation Centre director Mohamed Shariff Mohamed Din, as cited by OBG.

He further stressed on the importance of producing more inventors, especially among the younger generation, to help the nation’s Vision 2020.

“If we do not change now, our country will be left behind in various aspects. Look at developed nations like Japan, Korea, the US and the European countries. They progressed because of innovation. If we are not innovative, we will be left behind.”

Meanwhile, OBG mentioned that as the government would continue its commitment on higher education, rising demands for funds could mean a smaller slice of the budgetary pie for private universities, as acknowledged by Universiti Tenaga Nasional’s (Uniten) vice-chancellor Mashkuri Yaacob.

“Research and development has to play a bigger role as government funds will not continue forever, this needs to become a separate revenue generator.”

As such, Mashkuri revealed that the university was focusing on renewable energy by establishing Unitem R&D, a company to commercialise its research work, notably in areas such as wind, solar and biodiesel.

“The purpose is to be a solutions provider to the industry, so we established the new Energy Policy and Research Institute to focus on renewable energy.

“Malaysia wants to reduce by 40 per cent its carbon emissions and needs a lot of efforts to meet industry needs. This is changing the role of educational institutions.”

Money on wings

Borneo Post
by Wilson Luke
February 28, 2010, Sunday


On average, unprocessed bird’s nests can fetch RM4,000 per kg, meaning the industry can generate RM48 million a month.


A lucrative business to venture into at the moment maybe just flying around the corner.

Trading in bird’s nests has found a niche in the market after it began more than a century ago with the first recorded harvesting being carried out at the Niah Caves in 1878.

Indonesia was the first nation to commercialise the commodity due to its high value globally.

However, in the late 1990s when the haze blanketted the Southeast Asian region, most of the birds from Indonesia migrated across the border to Sarawak and the peninsula.

That was when Loh Siaw Kuei, a third generation supplier of local bird’s nests, started to take interest in swiflets ranching.

He recalled previously, they had to rely on suppliers from Niah in Miri before they could process and export the commodity mainly to China.

According to him, the old processing method left behind a lot of impurities, and supplies from the harvesters were also inconsistent.

In 2000, he decided to venture into swiftlets ranching and he put up a building just outside the city for the purpose.

“I started with an investment of RM30,000,” said Loh, arguably a local pioneer in modern swiftlets ranching.

He forked out another RM10,000 to buy the equipment needed to attract the swiftlets.

Being new to the venture, he sought help from friends and business partners in the peninsula who had started much earlier.

“It was truly by trial and error,” Loh said, adding that he started almost from scratch and persevered for more than five years before seeing the fruit of his labour.

Now, Loh has five ‘bird houses’ in Kuching and Samarahan.

“If the bird house turns out to be good, you can expect about 100 to 300 nests in the first year,” he said.

According to him, to be a successful swiftlets farmer, the three most important criteria are (1) getting started; (2) waiting (patiently) for the swiftlets to build their nests and (3) be innovative and constantly upgrading the farm with knowledge and technology.

It is estimated there are 1,000 bird houses in Sarawak and presently, about 10,000 buildings are used as swiftlet ranches nationwide, producing roughly 12 tonnes of bird’s nests monthly to which Sarawak contributes some five tones.

Presently, Loh obtains a lot of supplies from the Sarawak Bird’s Nests Merchant Association (SBNMA) of which he is president.

On average, unprocessed bird’s nests can fetch RM4,000 per kg, depending on the graded quality. This means the industry is capable of generating RM48 million a month.

Although Mukah is the main centre for swiftlets ranching, other areas with their own potential are Kuching, Bintulu, Sarikei and Sibu.

Basically, there are two types of products — cave bird’s nests and house bird’s nests.

According to Loh, not many bird’s nests are obtained from caves after the introduction of bird houses.

“The nests from bird houses are much cleaner and more hygienic compared to those produced in caves.”

The two swiflets species producing the edible bird’s nests are collocolia fuciphaga/aerodramus fuciphagus (AF) and collocolia maxima/aerodramus maximus (AM) found mostly in Malaysia at present.

The bird house has to be insulated and properly ventilated with the temperature kept below 30 degrees Celcius for the swiftlets to stay and breed.

Under normal circumstances, a pair produces two eggs per season — and three times in a year. If the bird house is conducive, by the 10th year, the total number of swiftlets could exceed 700,000 pairs with an estimated population of 1.5 million.

Although on paper, this may look impressive but in reality, it might not be accurate. However, even achieving only half the population figure would be regarded as a success.

A female swiftlet remains productive for 10 to 15 years and can live up to 25 years.

Bird’s nests are used in medicine, cosmetics and the food-based industry, worth RM1.5 billion annually in Malaysia through the export of raw bird’s nests, especially to China.

Recently, there was proposal to launch a multi-million ringgit swiftlets eco park in Sarawak to accommodate the thriving local bird’s nests industry.

So far, seven sites have been identified around Kuching, Sarikei, Bintulu and Mukah.

The project involves the construction of terrace houses or shoplots for swiftlets farming and processing in a systematic and ecologically friendly manner.

For those interested in swiftlets ranching, the bird’s nests industry is under the purview of the Wildlife Protection Ordinance 1998, Wildlife Protection (Edible Bird Nests) Rule 1998 and Wildlife Protection Rules 1998.

What this means is that the birds may live and be harvested with licence in their natural habitat such as cave dwellings but prohibited in urban or residential areas.

Rural areas could be bird’s nests goldmine

Borneo Post
February 24, 2010, Wednesday


LIMBANG: Rural areas could be a bird’s nests goldmine through the state government’s efforts to promote swiftlet rearing outside urban centres.Assistant Minister of Tourism and Heritage Datuk Talib Zulpilip said the industry has a bright future due to the lucrative returns and larger areas in villages to set up swiftlet nesting homes.

“The swiftlet industry has shifted out of town now and there is growing potential to expand this promising industry in villages and rural areas,” he said when officiating at the Sarawak Economic Development Corporation (SEDC) course on swiftlet rearing yesterday.

Among those present were Deputy Limbang Resident (Social Development) Stephen Kalong and Limbang District Council chairman Sufian Mohat.

Talib, who is also SEDC chairman, said Sarawak’s bird’s nests quality has long been renowned throughout the country and internationally, including in China, as experts recognize its special characteristics.

This presents many opportunities for those interested to diversify their economic activities, he said.

The huge demand for bird’s nests and vast agricultural land in the state, particularly outside urban centres, is a golden opportunity for Bumiputeras, he added.

Talib explained that although the start-up capital expenditure may vary between RM40,000 and RM50,000, the handsome returns made the investment worthwhile.

“A kilogramme, depending on the grade, can fetch between RM4,500 and RM6,500 locally, while the highest price is between RM12,000 and RM24,000,” he said.

He said more studies need to be carried out to further develop the industry.

Meanwhile, Bukit Kota assemblyman Dr Abdul Rahman Ismail, in his speech, called for greater local involvement in higher value economic programmes to enable locals to raise their household incomes.

This should be the trend of communities in Limbang district as the government through SEDC, he said, could assist through a host of economic development programmes.

“When the people’s income and economic standards rise, it will have a knock-on effect on the country’s economic growth,” he pointed out.

He said this is the rationale behind the government’s optimism in encouraging the people to be positive-minded and determined to succeed in various fields.

“The society generally is highly determined to take on various fields that promise good returns, including the lucrative swiftlets rearing industry,” he added.

Swiftlet rearing is taking off in stages in Lawas District.

Two hundred participants from Limbang, Lawas and Ba Kelalan attended the one-day course.

Borneo Resources in RM40mil swiflet eco-park JV

Tuesday January 26, 2010
The Star
By JACK WONG

KUCHING: Sarawak State Economic Development Corp (SSEDC) and Peninsular Malaysia-based Borneo Resources Synergy Sdn Bhd (BRS) have agreed to jointly develop a RM40mil swiftlet eco-park in Balingian, Mukah Division within the Sarawak Corridor for Renewable Energy.

BRS, a wholly-owned subsidiary of property development and investment firm Masmeyer Holdings Sdn Bhd, has a 80% stake in the joint venture. SSEDC holds the balance 20%.

Sited in a rural setting along the Mukah-Balingian coastal highway, the project will involve the development of 40 three-storey units and 15 three-storey bungalow units.

“The project is targeted to be completed not later than 2012. Ideally, it is to be ready this year,” BRS director Choo Beng Kai said after the joint venture agreement signing ceremony. Golden Swift Resources Sdn Bhd, a swiftlet farming expert, has been engaged to provide technical expertise to the project.

SSEDC was tasked by the state government to spearhead the development of swiftlet farming on a well-planned, sustainable and eco-friendly manner.

The state authorities recently took action against hundreds of unlicensed swiftlet operators who used shophouses in town for swiftlet farming. The proposed park will provide an alternative venue for swiftlet farmers asked by the state government to shift their operations to approved sites.

Newly appointed Sarawak Assistant Tourism Minister Datuk Talib Zulpilip, who witnessed the ceremony, said the development of the proposed park was to ensure an orderly development of the lucrative swiftlet farming industry.

Talib, who was former SSEDC chairman, said SSEDC planned to develop similar swiftlet eco-parks in other parts of the state.

“We (SSEDC) are looking to bring in more joint venture partners in similar projects.” He said SSEDC-BRS would process and market the bird’s nests the joint-venture company produced. A kg of unprocessed bird’s nest now fetches about RM4,250.

Talib said Sarawak was well-known for its high quality bird’s nest, adding that this was evident as the early traders from China had come to Sarawak to buy bird’s nests.

Swiftlet industry in Sarawak ruffles feathers

Friday December 11, 2009 MYT 12:39:28 PM
The Star


KUALA LUMPUR: The edible swiftlet nest industry in this country is a highly lucrative one with the annual turnover reaching RM1bil.

However, a critical issue pertaining to the licensing of the swiftlet farms within buildings located in towns may retard the industry if no solution is found.

Local authorities are against the idea of having swiftlet farms in towns as they can cause nuisance to the public and pollute the environment.

But places like Sarawak, though the swiftlet farms are forbidden in towns, still has to find a solution for more than 1,500 illegal swiftlet farms. Any attempt to eradicate the illegal swiftlet farms will bring negative impact to the industry.

So what is the best option in solving this problem to ensure that the effort to boost the industry is not derailed? The licensing issue cropped up in October last year after the authorities conducted an exercise to clear up illegal swiftlet farms in Mukah town.

The move by the authorities has put many swiftlet farm owners in a quandary and raised many questions on the way the exercise was carried out.

During the exercise the swiftlet chicks protected under the Wildlife Act 1972 were left to die in the nests that were confiscated by the authorities. Those annoyed with the move even posted the video on the chicks' fate on the popular video sharing website Youtube.

The action taken by the local authorities has certainly ruffled some feathers, especially the swiftlet farmers.

Thus the Swiftlet Merchant Association in Mukah requested Chief Minister Tan Sri Abdul Taib Mahmud to help find a solution. The same request from the counterparts in Sibu and Sarikei followed suit.

The bottom line is that the farm owners wanted to continue operations in the existing premises with most of them being shoptlots.

But the local authorities are steadfast with their stand. Despite the edible swiftlet nest's huge commercial potential, Sarawak's 1998 Wildlife Protection Ordinance prohibits the species from being bred in other than its natural habitat like the caves and this has made things difficult for the industry.

The director of Sarawak's Forestry Department who is also the Wildlife Controller for Sarawak Datuk Len Talif Salleh stressed that the state government wanted the industry to be developed in a controlled manner in accordance with the existing laws.

Len Talif pointed out about 100 licenses have been approved from the 600 to 700 applications received since May.

"Most of the licenses approved are for the "oldplayers" who conform to the prerequisites.

"The rest were rejected as their proposed swiftlet farms are in towns," he said adding that enforcement measures would be taken against illegal swiftlet farms.

The licenses were issued for swiftlet farming in Mukah, Bintulu, Kuching, Kota Samarahan and Sarikei with all of the swiftlet farms in agricultural areas. Nonetheless, the industry views the issuance of the licence as a positive development when in May, only two of the more than 1,500 swiftlet farms in the state were licensed.

Swiftlet farming also needs approval from agencies like the Land and Survey Department, the Natural Resources and Environment Board (NREB) and the local authorities.

And the good news is that the state government is to build three swiftlet ecoparks in Mukah, Sarikei and Bintulu respectively with lots to be sold and rented out to those who are keen.

However, many are sceptical that the bird will nest at the ecopark and feared the bureaucratic hassle.

Thus this scepticism has prompted a big number of swiftlet farm owners to seek exemptions and continue with their activities in the existing premises in towns.

The swiftlet nest entrepreneurs also hope to adopt guidelines like the Good Animal Husbandry Practices (GAHP) for the swiftlets, so that they will be allowed to ply their trade within towns as done by their counterparts in Peninsula.

"We will follow this guideline," noted the protem chairman for the Sarikei Swiftlet Nest Merchants' Association Wong Hua Ting, which is in opposition to the state government's stand that the swiflet farming should only be carried out at agricultural areas or the proposed ecopark.

Swiftlet farming in populated areas could create pandemonium among the public especially when there are diseases involving this species of bird.

The Veterinary Services Department (VSD) has conducted more than 5,000 tests on the birds and have confirmed that the swiflet are free from bird flu and Newcastle disease.

The department is also preparing the guidelines on swiftlet farming and the draft proposals will be forwarded to the Steering Committee for the National Swiftlet Industry on Dec 14. The guideline known as "1GP" makes it compulsory for swiftlet breeding premises to be registered with department.

However, before the guideline could be adopted by the local authorities, it would be brought to the attention of the National Council on Local Government chaired by Deputy Prime Minister Tan Sri Muhyiddin Yassin, which is expected to meet March next year.

"The guideline will set the standard for all local governments. It will help traders and swiftlet farm owners to venture into this field in a more organised manner," said the chairman of the Federation of Swiftlet Nest Merchants' Associations Datuk Beh Heng Seong.

Regarding the guideline, Len Talif noted that the Sarawak state government is ready to adopt it as long as it does not contradict with the state ordinance which would be continuously enforced.

He also gave assurance that in future the nests would not be confiscated and instead a compound will be issued and only the equipment used will be confiscated.

This development is seen as a positive indication pertaining to enforcement but this does not mean it has opened the doors for all to start swiftlet farms without authorisation.

The government wants to see 100,000 swiftlet farms producing 500 tonnes of the bird's nest annually worth RM5 billion by 2020.

The swiftlet nest from this country is of high quality and is highly sought after in China and Arab with the prices fetching up to RM10,000 per kilogram. Thus the solution for this licensing issue is highly pertinent and all parties involved should work hand in hand to ensure that the edible bird nest industry remains vibrant and the nation stands at par with Indonesia and Thailand, the leading producers. - Bernama

Dilemma over RM1bil swiftlet nest trade

Saturday December 12, 2009
The Star


KUALA LUMPUR: The swiftlet nest industry is highly lucrative with an annual turnover reaching RM1bil.

But a critical issue pertaining to the licensing of swiftlet farms within buildings located in towns may retard the industry if no solution is found.

Local authorities are against having swiftlet farms in towns as they can cause nuisance to the public and pollute the environment.

But in Sarawak where there are over 1,500 such farms operating illegally in towns, any attempt to eradicate them will impact negatively on the industry.

The licensing issue cropped up last year after the authorities conducted an exercise to clear up illegal swiftlet farms in Mukah town.

The move by the authorities has put many swiftlet farm owners in a quandary.

Furthermore, the Sarawak’s 1998 Wildlife Protection Ordinance also prohibits the species from being bred in other than its natural habitat like the caves.

Sarawak’s Forestry Department director Datuk Len Talif Salleh said the state government wanted the industry to be developed in a controlled manner in accordance with the laws.

Len Talif pointed out that only about 100 licenses had been approved from the 600 to 700 applications received since May.

“Most of the licenses approved are for the ‘old-players’ who conform to the prerequisites,” he said.

All of the licenses were issued for swiftlet farms in Mukah, Bintulu, Kuching, Kota Samarahan and Sarikei with all of them in agricultural areas.

The good news is, the state government plans to build three swiftlet ecoparks in Mukah, Sarikei and Bintulu with lots to be sold and rented out to those who are keen.

But many are sceptical that the bird will nest at the ecopark and feared the bureaucratic hassle.

This has prompted many swiftlet farm owners to seek exemptions and continue with their activities in the existing premises in towns, although this could create potential problem involving health issues.

Checks by the Veterinary Service Department which had carried out 5,000 tests on the birds confirmed that so far they are free from bird flu and Newcastle disease, but it is preparing a guideline making it compulsory for farms to be registered with the authority.

“The guideline will set the standard for all local governments. It will help traders and swiftlet farm owners to venture into this field in a more organised manner,” said the chairman of the Federation of Swiftlet Nest Merchants’ Associations Datuk Beh Heng Seong.

The swiftlet nest from this country is of high quality and is highly sought in China and Arab with prices fetching up to RM10,000 per kilo.

Eco-park concept finds takers in bird’s nest business

By AUSTIN CAMOENS

Popular industry: A swiftlet nesting in a house at Swiflet Eco Park in Manjung, Perak.
JOHOR BARU: Chin Yew Fatt, 61, is convinced of the potential in the bird’s nest industry, and has decided to give it a go after attending a seminar here on Saturday.

Chin, who works in the oil and gas industry, said he became keen upon hearing about the industry’s growth over the past 10 years.

“There is a lot of potential here in harvesting bird’s nests, and the eco-park concept is a good idea,” he said.

He was among 50 people who turned up for the Swiftlet Eco Park and Bio Desaru Organic Food Valley Cultivation and Processing Seminar organised by Swiftlet Eco Park Sdn Bhd.
Seow Chin Leng, 47, has been observing the industry for many years and waiting for the right time and project to invest in.

How: Hopes her business will be successful
“I believe the eco-park will provide a well-managed and professional solution for the bird’s nest business,” said the land surveyor.

Meanwhile, Olivia How, in her 30s, said she heard a lot about this business venture from her friends.

“My friends are in it, and many of them told me it is a lucrative business,” she said.
Swiftlet Eco Park executive director Eric P.S. Shak said the seminar was organised to give insight into the industry.

He said the company had been operating an eco-park in Perak and nine other parks would open soon around the country.

“People who lived near swiftlet nests complained about the smell and noise.
“With the eco-parks situated away from residential areas, there will be no more complaints,” he said.

The sky’s the limit for swiftlet farming?

Saturday December 13, 2008
The Star
By Errol Oh

THERE are indications that swiftlet farming has the potential to be as huge in this country as it is in Indonesia, where listed companies are among the industry participants.

Malaysia enjoys certain advantages such as the fact that the swiftlets are found only in some parts of South-East Asia. There is also swiftlet farming in Thailand, Vietnam, Cambodia, the Philippines and Myanmar, but our local conditions may tip the balance in our favour.

Also, the frequent forest fires in Indonesia in recent years have driven away many birds and many have ended up in Malaysia.

Says swiftlet farm owner Dr Christopher Lim: “Indonesia is the pioneer in swiftlet farming. It has done quite well in the past but lately it has found that the nest production and quality are not as good as in Malaysia. So much so that the Indonesians sometimes buy nests from Malaysia.”

Nobody seems to be concerned about the possibility that once swiftlet farming takes off in a big way, supply may one day overtake demand.

Says Kelvin Heng of Pearlnest, a swiftlet farming consultancy outfit: “There’s a limited supply all the time. The swiftlets nest only three times a year. People are getting more health-conscious. The wellness industry is growing fast. The demand for bird nests won’t go down.”

Before this, the Malaysian operators are almost exclusively minor-league entrepreneurs and property owners.

Today, bigger players are coming into the picture as well. For one thing, swiftlet farming is one of the East Coast Economic Region’s promoted activities.

On Nov 25, Agriculture and Agro-based Industry Minister Datuk Mustapa Mohamed said his ministry would propose to the Cabinet that the development of the industry be given more attention.

A prominent Tan Sri who controls a group of listed companies is believed to have personally invested RM2mil to build a swiftlet farm in Pekan, and may be looking to have more in other locations.

At least one Malaysian-listed company has ventured into the game, and that is Seal Inc Bhd.
Its wholly-owned subsidiary, Seal Ventures Sdn Bhd, is the developer of Krai Eco Park, a project comprising about 60 three-storey buildings in Kuala Krai, Kelantan.

Seal Inc’s 2008 annual report refers to the project as an industrial park development, but a Krai Eco Park brochure unmistakably positions the units as swiftlet houses.

Supporting the industry
Another telling sign that swiftlet farming is gaining momentum here is that a sub-industry has emerged in Malaysia to provide swiftlet farmers with a broad range of products and services.
The former include audio, monitoring and security systems; chemicals; and fittings for the birdhouses.

Lim is not the only one to have produced a book on swiftlet farming, although he recalls facing a lot of resistance within the industry when he began writing in 2006.

In fact, there are several such publications in English, Chinese and Malay. Sharing of information, it seems, is no longer a no-no.

On the services side, there are dozens of consultants who offer to design, build and manage swiftlet farms.

There are also those who organise seminars and courses. There are dozens of websites and blogs relating to the industry.

The worry is that some of the service providers may not have the necessary expertise and experience, and are instead looking to capitalise on the surge in swiftlet farming.

According to industry insiders, the standard consulting fee for turning shoplots into birdhouses is RM10,000.

“That’s a much faster way to make money than by investing in the farms, which will take a few years before you start seeing good returns,” says a farmer.

Swiftlet Ventures International, which has not begun operating its first birdhouse in Rawang, says first-hand knowledge is not always crucial. The consultancy’s edge, says manager Mohammad Azimullah, is its ties with an Indonesian firm with a 30-year track record and with other Malaysian players.

The argument is that it is just as important to be able to draw on this network’s pool of know-how.

Another new trend to watch is the development of the so-called eco parks, which feature rows of purpose-built swiftlet farms at single locations away from residential and commercial areas.
This way, there will be compliance with the authorities’ requirements and there will be no neighbours to complain about the birdhouses.

However, some industry players think that it will take a long time to populate so many birdhouses in one spot.