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.

Bird’s nest production rises 36% last year

Wednesday November 3, 2010
By SHARON LING
sharonling@thestar.com.my


SARAWAK’s production of swiftlet nests rose by 36% from 2,095kg in 2008 to 2,854kg last year, with an export value of RM8.37mil and RM11.41mil respectively.

Planning and Resource Management Assistant Minister Naroden Majais said the increase showed that the industry had the potential to be successfully developed in the state.

He added that, as of October this year, the production was 1,757kg valued at RM7mil.

“Swiftlet farming is a potentially lucrative industry. The market price for swiftlet nests ranges from RM3,000 to RM10,000 per kg depending on the quality and grade of the nests.

“China is our biggest market for edible swiftlet nests, followed by Singapore and Peninsular Malaysia,” he told the State Assembly in Kuching in reply to Julaihi Narawi (BN - Sebuyau), Datuk Wan Abdul Wahab Wan Sanusi (BN - Sadong Jaya) and Abu Seman Jahwie (BN - Jemoreng).

Naroden said that two licences were needed for commercial swiftlet farming, one to construct the building for the swiftlets to nest in and one for the rearing of the birds.

He said the state received 1,111 applications for swiftlet farming from 2008 to Oct this year. Of this, 248 licences to construct buildings and two to rear swiftlets were approved while the rest were still being evaluated.

He added that the construction of swiftlet farms was continuously monitored to prevent illegal farming operations.

“The Forest Department and Sarawak Forestry Corporation conducted two inspections between 2009 and March this year, from which 418 swiftlet farming premises are being investigated.

“The state has also issued warnings to owners of illegal swiftlet farms. They are advised to submit the necessary applications,” he said.

RM5mil for swiftlet farming

hmmm.... RM10,000 grant to start swiftlet farming, just wondering what you can do with this amount. This is really going to be fun or havoc, imagine 10 or more families pooling their grant together to start swiftlet farming or some individuals building a swiftlet farm with RM10,000. I wonder if bigger premises are really more productive.
Jackie


Sunday October 31, 2010
The Star
RM5mil for swiftlet farming


KUALA LUMPUR: The Government has allocated RM5mil to involve the country’s hardcore poor in the swiftlet farming industry.

The Veterinary Services Department has identified 500 families under the e-Kasih database who are eligible to receive an RM10,000 grant each to set up swiftlet premises.

“We will encourage them to collaborate with each other in joint swiftlet farming as bigger premises are more productive and will generate a higher income for them,” said department director-general Datuk Dr Abdul Aziz Jamaluddin.

He also announced that the swiftlet industry guidelines would be unveiled next month to govern the licensing, farming, processing as well as import and export of bird’s nest.

The industry, which is an entry point project under the Economic Transformation Programme, is expected to capture 30% of the global market and generate revenue of up to US$1.45bil (RM4.5bil) by 2020.

“We are encouraging the participation of bumiputras in this industry as they currently only make up 20% of swiftlet farmers in the country,” he said after launching the 7th series of seminars on swiftlet farming at a hotel here yesterday.

Swiftlet farmers are required to attend the one-day seminar before they can be licensed.

Bird’s nest trade open for all

Friday September 24, 2010
The Star
By RACHAEL KAM
rachael@thestar.com.my


KUALA LUMPUR: Non-Chinese are encouraged to go into bird’s nest farming and retailing, given the huge potential for growth, said Associated Chinese Chamber of Commerce and Industry Malaysia (ACCCIM) president Tan Sri William Cheng Heng Jem.

He said the industry was no longer a business that was restricted to the Chinese community.

“The bird’s nest business is opening up for all Malaysians due to the large demand for it globally,” he told a press conference on a bird’s nest business seminar here yesterday.

Cheng said there was demand for bird’s nest even from the Middle East.

“We see the potential because more non-Chinese are appreciating this expensive but nutritious product,” he said.

Malaysia is the second largest exporter of bird’s nest followed by Indonesia, Vietnam and Thailand.

The country exports about RM1bil worth of bird’s nest a year to Hong Kong, China and Taiwan.

ACCCIM and the Kuala Lumpur and Selangor Chinese Chamber of Commerce and Industry are jointly organising the seminar on Oct 9.

Cheng said ACCCIM would assist the non-Chinese, especially small entrepreneurs and poor individuals in rural areas to start their own business and generate more income.

ACCCIM secretary-general Datuk David Chua said the seminar would be conducted in Bahasa Malaysia and English, targeting the Malays and Indians.

The seminar will feature experts in the industry who will discuss the guidelines on bird’s nest farming and financial assistance.

Koperasi Setiakawan Plans To Enter Swiftlet Farming Industry

June 01, 2010 15:07 PM
Bernama
By Adnan Jahaya

KANGAR, June 1 (Bernama) -- Koperasi Setiakawan Perlis Berhad plans to enter the swiftlet farming industry in a big way, with its target market being Hong Kong and China.

Its General Manager, Bahari Ali said a 10-hectare site in Perlis had been identified for the swiftlet farming, as well as for processing of nests before export.

Speaking to Bernama here Tuesday, he said the cooperative will offer 2,000 units of special shares valued at RM1,000 per unit to members, for the implementation of the project.

He also disclosed that the cooperative would sponsor a course on June 5 for 40 participants from throughout the country for the rearing of swiftlets, in cooperation with the Perlis Veterinary Department.

Bahari said, although the cooperative with its office here in Taman Jejawi is still new and be only launched on June 6, its economic planning was already underway.

According to him, Perlis Menteri Besar Datuk Seri Dr Md Isa Sabu is scheduled to launch the cooperative and also witness the signing of a memorandum of understanding (MoU) between it and Riyana Marketing Sdn Bhd.

Riyana Marketing will be elected the sole representative to collect and market, Small and Medium Industry (SMI) products, undertaken by the cooperatives' members.

Bahari said the cooperative also plans to open a plant to process coffee in Qianghai province, China, in a joint venture, early next year.

Also proposed is the establishment of a Kedai Rakyat and Pasar Rakyat at potential locations throughout the country.

He asked that those interested in joining the cooperative, to contact him for further information at 018-3871654 or 012-5713639.

-- BERNAMA

Companies Commission forms special taskforce to fight crime

Wednesday May 12, 2010
The Star
By DANNY YAP
danny@thestar.com.my


Cabinet-directed move to build investor confidence

KUALA LUMPUR: The Companies Commission of Malaysia (SSM) has established a special taskforce that would collaborate with other government agencies to help fight against white collar crimes and build greater investor confidence, among locals and foreigners.

Domestic Trade, Cooperative and Consumerism Minister Datuk Seri Ismail Sabri Yaakob said the two objectives were a directive from the Cabinet.

The special taskforce and working committee was established on March 9.

Ismail Sabri said: “I will be personally helming the taskforce,” he told reporters at the Business Ethics Dialogue yesterday.


He said the special taskforce and a working committee would be working closely with regulators including, Bank Negara, the Securities Commission, Bursa Malaysia and Bukit Aman police to look at companies (listed and unlisted) with “questionable” operations against the laws.

Ismail Sabri said SSM will be having regular meetings with the various regulators to look at individual corporate cases and their business ethics to decide collectively if any fraud or misconduct had occurred.

SSM chief executive officer Datuk Azmi Ariffin, who helms the working committee, said the new platform (special taskforce and a working committee) would enable decision making on corporate misconduct to be faster and brought to court to be charged, if required.

On the time frame, Azmi said it depended on individual cases but generally would be decided within three to six months.

On current cases, he said there were four cases under investigation and two have been brought to the court since the team was established.

One of the companies charged by the court was Red Cafe Franchise Sdn Bhd for fraudulently inducing people to invest RM1,040,400 in a programme called the “Island Red Cafe,” while the other company charged was for deposit taking in a swiftlet business scheme.

Another SSM director said several other cases, currently being investigated in Kedah and Penang involve tontine schemes that have collected in total RM33mil from 100,000 individuals.

Swiftlet farming firm raided

Tuesday May 11, 2010
The Star


KUALA LUMPUR: A swiftlet farming company in Kulim, Kedah, was raided by the Companies Commission of Malaysia for allegedly offering the public high invest­ment returns in a swiftlet farming scheme.

The company has been claiming that it can offer investors up to 80% share of the sales proceeds if a person invested anything from RM4,000 to RM400,000.

The company’s modus operandi is to engage the public in a swiftlet farming investment scheme, the commission said in a statement.

The commission is investigating the company under Section 84(1) and Section 91(1) of the Companies Act, for allegedly running an investment scheme without the prior approval of the Registrar of Companies.

“We will continue to monitor all companies offering interest schemes to the public to protect the interest of the people,” the statement added

Penang may follow Sabah in disallowing farming in urban areas

Wednesday April 21, 2010
The Star
By WINNIE YEOH


winnie@thestar.com.my

THE moratorium on swiftlet farming should not be taken as a sign that the state government is allowing the activity in urban areas, said Penang Local Government Committee chairman Chow Kon Yeow.

“The moratorium has been extended thrice as the state is still waiting for the national guidelines on the industry from the Agriculture Department and the Veterinary Services Department.

“The state recognises the swiftlet farming industry as a revenue earning trade but it should be done properly. We are mulling over the idea of moving the industry out of urban areas such as George Town,” he said when contacted on Monday.


Lucrative industry: Young swiftlets in bird nests in one of the swiftlet houses in George Town.

Chow said the breeding activities should preferably be moved to an agriculture area, adding that there was no specifically zoned areas for swiftlet breeding in the state as this comes under the jurisdiction of the Veterinary Services Department.

He was responding to a decision by the Sabah Cabinet to ban swiftlet breeding from major urban areas three weeks ago.

Its Resource Development and Information Technology Minister Datuk Dr Yee Moh Chai had placed the ban within all major towns, citing environmental and health threats posed by the birds as well as them being a nuisance.

Penang Heritage Trust (PHT) president Khoo Salma Nasution said the organisation lauded the move by Sabah and had been campaigning for an end to swiftlet farming in George Town.

“We hope the precedent set by the Sabah Government would be acknowledged and emulated by the Penang Government.”

Meanwhile, Association of Swiftlet Nests Industry (ASNI) president Carole Loh said the existing houses in George Town should be allowed to continue because these birdhouses were set up following a 2005 state government guidelines.

“The guidelines allowed swiftlet farming and many birdhouses were erected on that basis.

“The swiftlet farmers have invested a lot of money and it takes at least three years to see returns.

“The association is all for guidelines and regulations, and we are ready to work with the local authority to maintain the houses,” she said.

Ban on swiftlet farming in town areas too premature

Monday April 26, 2010
The Star
RUBEN SARIO
sario@thestar.com.my



FOR years, a group of entrepreneurs in Sabah have been raking in the “big bucks” by harvesting swiftlet nests from all sorts of buildings, some purposely built while others using abandoned or disused structures such as shophouses.

Among those who jumped on the swiftlet farming bandwagon was former state assistant minister Datuk Karim Bujang, who built a concrete structure in his native Kampung Gadong in Papar district, some 29km from the city.

Asked whether swiftlet farming could be equated with swift cash, the Bongawan assemblyman answered without hesitation: “Yes.”

The numbers in the minds of many Sabah swiftlet farmers remember is this; the start-up cost for the business is in the region of RM200,000.

Once they are able to attract the swiftlets to nest in their structures, 150 pairs of birds can produce up to 1kg of nests.

And it is possible for farmers to harvest up to 10kg of nests every three months, earning them about RM50,000.

But some swiftlet farmers here suddenly found their wings clipped early this month when state Resource Development and Information Technology Minister Datuk Dr Yee Moh Chai announced the state Cabinet’s decision to ban swiftlet farming in all town areas.

Dr Yee said the ban came in the wake of concerns about the potential health and environmental problems caused by bird’s nest farming, apart from being a public nuisance.

He said the Sabah Government was encouraging bird’s nest farming but this should be done in areas with low population density.

That announcement caught swiftlet farmers offguard and a grouping representing them questioned the need as cities such as a Johor Baru and Ipoh had no such ban.

Sabah Swiftlet House and Bird’s Nest Industry president George Ng also wondered why the state decided to place a ban as the industry was still awaiting the Federal Government’s guidelines on swiftlet farming practices.

The ban has also caused confusion for some as the state’s announcement is not clear on whether the move covered just the populated areas or entire rating areas of a city or municipality. Worries about the impact of the swiftlet farming ban spilled over at the just-concluded sitting of the Sabah state assembly.

Among those who spoke up about the issue was Kiulu assemblyman Datuk Louis Rampas who said the ban could dampen entrepreneurial spirit among the people.

He said the government should not impose severe restrictions on the industry in the absence of any guidelines for it as yet.

Dr Yee and some of his state Cabinet colleagues then tried to assuage the concerns and criticisms raised following the announcement of the ban.

“We are encouraging swiftlet farming but it should be conducted in a proper manner, and this means no such activities in the city or town area.

“Swiftlet farming must be done in an area where it does not affect many people. Bear in mind this sort of activity is noisy and birds are known vectors of diseases,” he said.

Dr Yee’s Local Government and Housing counterpart Datuk Hajiji Mohd Noor said that the guidelines would be drawn up with the Sabah Wildlife Department to put in place a systematic development of the lucrative bird’s nest industry.

Back at the Sabah state assembly, Deputy Chief Minister Datuk Yahya Hussin said swiftleft farming was a way for the poor to escape the poverty trap and that was why the government was encouraging the development of the industry.

Despite these assurances, some Sabahans cannot help but wonder whether the state is too premature in announcing the ban when the national policy on swiftlet farming has yet to be finalised. And they can’t help shake off the feeling that the state is putting the proverbial cart before the horse.

Monday April 26, 2010
China to invest RM1bil in Kemaman iron ore plant


KEMAMAN: China is expected to invest RM1bil to build an iron ore factory at Teluk Kalong industrial zone near here.

Mentri Besar Datuk Ahmad Said said work on the factory was expected to start early next year after an agreement was reached during a bilateral meeting between the Terengganu government and Guangzhou state officials during a recent trade mission by the state to China.

“The visit by senior state officials, together with Terengganu industrial captains, ended on a high note as many Chinese investors were keen to explore business opportunities here.

“During the visit, the state government also approved proposals by Chinese investors to invest in swiftlet farming business for the production of edible bird’s nest, apart from the iron ore factory,” he said after opening the annual general meeting of the Welfare Body of Wives of Terengganu Assemblymen here on Saturday.

The meeting was chaired by its chief Toh Puan Norliza Mahmud, who is also the Mentri Besar’s wife.

“For a start, the factory will provide 800 jobs that can be taken up by the locals,” Ahmad said.

Swiftlet farming ban draws flak

Saturday April 10, 2010
The Star
By MUGUNTAN VANAR
newsdesk@thestar.com.my


KOTA KINABALU: A state Cabinet’s decision to ban swiftlet farming in major urban areas is drawing flak among entrepreneurs of the lucrative birds’ nest business.

Swiftlet farmers are arguing that health and environmental issues should not be the basis of the ban as tests and studies had shown that those birds were not carriers of diseases.

In fact, Sabah Swiftlet House and Birds’ Nest Industry president George Ng said the large presence of pigeons in popular Gaya Street was dirtier than birds found in organised swiftlet farms.

He said major cities like Ipoh and Johor Baru had not stopped such activities.

Thus, he said, there was no reason for the state to ban the industry in major towns like Sandakan, Tawau and the city here.

Ng wondered why the state decided to place a ban as the industry was still awaiting the federal government’s guidelines on swiftlet farming practices.

The state government announced the ban several days ago. State Resource Development and Information Technology Minister Datuk Dr Yee Moh Chai explained that the decision to ban birds’ nest farming in the three towns was partly because it was a public nuisance.

Meanwhile, Sabah Progressive Party questioned the alleged double standards of Kota Kinabalu City Hall for not acting against two birds’ nest farms in the Gaya Street area despite numerous complaints.

SAPP spokesman David Chong said City Hall had shut down similar farms in the Inanam area but refused to act against these two farms in the central business district here.

“The state Cabinet’s decision to ban swiftlet farming should be adhered to strictly,” he added.

Bird's nest: Finding the swift way to earn megabucks

2010/03/29
NST



Swiftlet breeding is a thriving business worth RM1.5 billion annually. The speed at which the industry has grown in the last few years poses a major dilemma for operators and the public due to the health risks, smell and noise. The government is now looking at giving the industry a much-needed framework to operate in a sustainable manner. CHUAH BEE KIM, ZAINUDDIN MUHAMMAD, M. HAMZAH JAMALUDIN, PATRICK SENNYAH and ROY GOH report.

Pix: A swiftlet hotel in Kuala Terengganu luring swiftlets with recorded sounds of female birds. — NST picture by Imran Makhzan

FROM caves at the Niah National Park and Gunung Mulu National Park in Sarawak, swiftlet breeders have now taken their business into cities and towns nationwide.

Malaysia now has about 50,000 swiftlet premises producing more than 12 tonnes of bird's nest monthly. The current price of bird's nest is between RM3,000 and RM4,000 per kg, depending on the grade.

Operators are keeping their fingers crossed for government assistance to take the business to a higher level.

Those in Johor, for example, want the government's nod for export licences.

If this happens, they are geared up to put the country on the world map as the biggest exporter of bird's nest.

Those in Negri Sembilan want help in getting halal and Sirim certification as well as the internationally-recognised Hazard Analysis Critical Control Point certification for their products.

They are also hoping to get the government's assistance to set up a research and development facility to enhance the quality and variety of the products.

Datuk Saipolbahari Suib, adviser to Persatuan Pengusaha Industri Sarang Burung Kulai, is confident the industry can achieve the dream if they are given the opportunity to export their harvest.

"Currently, we are sending the bird's nests to Indonesia for processing as we do not have the plants here. If the government can set up processing plants in every district, we will be able to do everything locally and export the products."

Saipolbahari, who is also chairman of JB Bird Nest Resources Sdn Bhd, hopes the government will give a grant of RM400,000 for the setting up of processing centres in every district.

"I am optimistic that we can make it big in the global market as the quality of our nests is one of the best in the market."

In Johor alone, there are about 5,000 bird's nest traders.

Negri Sembilan Association of Bird's Nest Traders president Datuk Lee Yuen Fong says there are about 40,000 breeders nationwide, of which 95 per cent are operating without licences.

"The reason for this is that there is still plenty of red tape and we hope this problem will be ironed out soon."

He says because it is a multimillion-ringgit industry, there are many unscrupulous parties trying to cash in on it.

"Another issue plaguing the industry is smuggling."

Complaints against the swiftlet industry are numerous -- noise pollution is a common gripe of anyone living next to a "swiftlet hotel".

To lure the birds, which breed in colonies, recorded sounds of chirping females are played constantly on speakers.

Saipolbahari says responsible breeders follow the guidelines set by the
Veterinary Services Department, where only a sound level of 40 decibels is permitted.

"Errant traders who do not follow this guideline should have their licences revoked."

Another concern is bird flu. However, Saipolbahari says swiftlets are the cleanest birds around.

"Moreover, the Convention of International Trade in Endangered Species had carried out research on swiftlets in 2005 and the birds are not the species that cause bird flu."

Saipolbahari says swiftlet breeding is a godsend to many, especially during the economic downturn, as buildings which have been abandoned or cannot be rented out are revived when swiftlet breeders come in.

Bird nest industry catching up in the peninsula

Published: Monday March 29, 2010 MYT 10:55:00 AM
Updated: Monday March 29, 2010 MYT 10:58:20 AM
The Star


ALOR SETAR: The bird nest industry so far has been the domain of entrepreneurs in Sabah and Sarawak but the billion dollar industry is now slowly picking up in Peninsula.

Realising of the huge potential, a businessman in Alor Setar, Datuk Mohd Yusof Ismail without hesitation invested millions of ringgit in the swiftlet nest industry that is synonymous with the Chinese community.

Mohd Yusof noted that he became interested in the venture after a casual meeting with the chairman of the Federation of Bird Nest Traders Associations, Datuk Paduka Beh Heng Seong, in Sitiawan, Perak in 2008.

“It started as a casual conversation but after hearing Beh’s explanation on the lucrative returns from the bird nest industry, I was convinced that I should give a try.

“Several of my friends who were already in the industry also gave me encouragement saying that the risks on investment are low and also asked me to attend courses related to the field,” said Mohd Yusof, the managing director of Kumpulan Usima.

An initial investment of RM1mil to build two four-storey swiftlet farms in Kuala Rompin, Pahang early last year saw good returns within six months.

“This gave me the confidence to invest another RM2.5mil to build five more swiftlet farms in Jerlun, Kubang Rotan, Kuala Sanglang, Padang Sera and Tebengau respectively. The farms were completed recently.

“Though in Kuala Rompin alone there are more than 100 swiftlet farms, there is still room for competition and only that the startup cost is high,” noted Mohd Yusof in an interview with Bernama here.

The first harvest after six months recorded almost RM10,000 for each farm and one can expect the same returns for the first three years.

Normally, the harvesting is done once every two or three months. After three years, the returns may go up or down depending on the number of birds nesting there.

“Based on my experience, each farm can produce up to 3kg of bird nest and their market value is between RM3,600 and RM4,000 per kg for the unprocessed nest and the processed ones can fetch twice more.

“Currently the bird nests are sold raw as there is no expertise to process them,” said Mohd Yusof who has a list of regular buyers.

According to Mohd Yusof, the revenue would be affected at times when the birds migrate but there are ways to entice them to continue staying in their farms.

The design of the nesting building especially the entrance helps in retaining the birds along with the right temperature and level of humidity within and the calls to lure in the swiftlets, he said.

"It is not difficult to take care of the birds and there is no need to feed them. The only problem is that the nests get stolen even before the owners can harvest them.

“There was one I found a rope used to climb into one of the swiftlet farm building in Kuala Rompin. It is definitely the work of those in the know,” he said.

Lizards, ants and other insects too pose a threat especially when the birds are brooding but these pests can be rid off with the right pesticide.

However, the swiftlets are sensitive to the presence of owls that often eat their young when the adult birds leave the nest at night to look for food.

“I’m planning to open a bird nest exhibition room within the next four or five years when my business expands,” he said.

Mohd Yusof noted that he is willing to share his expertise with those keen to venture into this field which still has room for more participants.

He advised those lacking in capital to consider establishing a consortium to venture into this lucrative industry.

Meanwhile, Beh noted that the bird nest industry in bMalaysia has a bright future looking at the demand and the price of the product.

“The bird nests from Malaysia is highly sought after in China, Hong Kong, Taiwan and Korea, surpassing the demand for nests from Thailand and Indonesia, two of the world’s biggest bird nest producers,” he told Bernama. -- Bernama

Need to ensure safety in swiftlet industry

=Mar 25, 2010
The Star

KOTA KINABALU: Swiftlet farming is a lucrative industry but steps must be taken to ensure it does not have a negative impact on the environment and the people.

Sabah Deputy Chief Minister Datuk Peter Pang En Yin said there was a need to make sure the activity was carried out in specific areas.

“We have to bear in mind that local authorities do not allow swiftlet farming at shoplots or commercial lots in townships and urban areas as these properties are gazetted for residential, commercial, industrial and tourism purposes.

“They are not zoned for swiftlet farming so I advise those in the industry to wait for the endorsement of the Swiftlet Industry Guidelines (SIG) by the Federal Cabinet,” said Pang, who is also the State Youth and Sports Minister.

With SIG, local authorities could determine the zones allowed for swiflet farming and those involved in the industry would have a set of regulations to adhere to, he added.

Sabah Swiftlet House and Bird’s Nest Industry Association president George Ng had said that the SIG, reported to have the full support of the health, agriculture and agro-based industries and the Housing and Local Government Ministry, was supposed to be tabled at the Federal Cabinet meeting at the end of last month but was delayed.

If accepted, it would give the industry the much-needed framework to operate in a sustainable manner and put Malaysia ahead of leading bird’s nest producers like Indonesia and Thailand, he said.

The guidelines would also provide a framework to supervise the industry in a holistic way in terms of licensing, sampling, production and export particularly to China, he added.

Pang, the Karamunting assemblyman, said he was aware of developments in the industry and stressed he had nothing against the industry.

He pointed out that allowing swiftlet farming in industrial or densely-populated areas could have a negative impact in the health, business and safety aspects.

“We know how valuable birds’ nest are and this could trigger an increase in criminal activities in towns or industrial areas where swiftlet farming is allowed,” he said, adding that people would be worried about the droppings and noise from the birds.

Pang who is also Kosan chairman, said the state agency experienced some setbacks as a result of a swiftlet farm in an industrial area in Sandakan.

Kosan had rented four ground-floor shop lots in an industrial zone in Sandakan to expand its production line and provide jobs for 80 youths in the district.

“The management abandoned its plans after realising that the upper floors were occupied by a swiftlet farmer. Kosan wanted to avoid any health risks to its employees,” he said.

In response to Ng’s claim that the industry could boost property prices in Sabah, Pang said he was not convinced as swiftlet farming could cause the opposite effect.

“Zoning an area for swiflet farming can have a negative effect with property owners disposing their properties and tenants moving away.

An area for human occupation would be taken over by birds and this could cause a whole township to be deserted, he lamented.

Pang said a clean and healthy environment was important for the state’s tourism industry and tourists might feel uneasy if the places they visited had health risks because of swiflet farming.

“We do not want to see swiftlet houses next to hotels, seafood restaurants and shopping malls,” he said, adding that swiftlet farmers should not fall prey to agents or advisers in the industry.

Wait for the guidelines to be drawn up and consult local authorities before setting up business, he 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.”

Cabinet to look into bird’s nest guideline

Friday February 19, 2010
The Star


KUALA LUMPUR: The Swiftlet Industry Guideline, expected to be presented to the Cabinet next week, will give the industry a much-needed framework to operate in a sustainable manner.

The guideline, if accepted, will put Malaysia ahead of leading bird’s nest producers like Indonesia and Thailand.

“It will be the first swiftlet industry guideline in the world,” said Veterinary Services Department director-general Datuk Dr Abdul Aziz Jamaluddin.

The swiftlet industry is worth RM1.5bil annually.

The guideline, he added, would provide the framework to supervise the industry in a holistic way, including in terms of licensing, sampling, production and export of swiftlet bird’s nest abroad, particularly to China.

Dr Aziz said the guideline had the full support of the Health, Agriculture and Agro-Based Industry, and the Housing and Local Government ministries.

The speed at which the industry grew over the last few years has resulted in a major dilemma over the licensing of swiftlet-rearing premises in shophouses, due to the health risk, smell and noise.

Federation of Swiftlet Nest Merchants Association chairman Datuk Beh Heng Seong said the guideline would resolve the problem as owners of premises would have to agree with the conditions if they wanted to remain in business.

“It will become a standard for all local authorities,” he said.

Malaysia has about 50,000 swiftlet premises producing over 12 tonnes of bird’s nest monthly.

One kilogram of bird’s nest can fetch RM4,000. – Bernama

Firm blocked from offering swiftlets investment schemes

Thursday February 11, 2010
The Star


PETALING JAYA: The Companies Commission of Malaysia (CCM) has obtained an injunction to prevent a company from offering investment schemes involving the commercial rearing of swiftlets; with promised returns to investors derived from the selling of bird’s nests.

The High Court ruling on Feb 9 on Golden Nest Properties International (M) Berhad also applies to the agents, staff and other entities of Golden Nest until the company complies with Section IV, Division 5, of the Companies Act 1965, said CCM in a statement.

Golden Nest will also have to register deeds of trust with the CCM before continuing with their business operations.

CCM said Golden Nest, which started operating in November 2008, guaranteed returns to investors who were involved in its bird’s nest investment schemes.

CCM advised members of the public to be cautious when investing in schemes which are not registered with any regulatory body in Malaysia.

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.

Lucrative but risky business

Wednesday January 13, 2010
The Star
By ANN TAN


THE bird nest industry may be booming within the George Town heritage enclave but it is still a trade secret among breeders.

Association of Swiftlet Nests Industry (ASNI) president Carole Loh said there was no right formula in attracting the swiftlets and those who had found the technique would usually not teach others.


Loh looking up at the birds nests in one of the swiftlet houses in George Town.

“The business may look good on paper. It may bring high returns but it is a risky investment as the success rate is only 20% to 30%.

“To invest and buy a bird house, one has to obtain a bank loan as it involves a huge investment. Then, one may have to wait for up to three years before one can get some returns. So within this period, there is no income,” she said.

Loh said there were many cases where swiftlets had failed “set up shop” and the investors were forced to shut down because they were unable to service their bank loans.

“Swiftlets lay eggs three times a year and two eggs at a time. It takes between 30 and 45 days for them to build the nest and another 45 days for the chicks to mature,” she said.


A baby swiftlet in its nest.

“Prior to harvesting, the breeders must ensure that there are no eggs or chicks in it for them to have a chance to grow.

“The harvested bird nests are then soaked in water for it to expand so that the feathers and dirt could be separated. This is usually done by a middle man who would then sell the nutritious product to others.”

Eating the swiftlet’s nest is believed to help maintain skin tone, balance qi (life energy) and reinforce the immune system.

It is also believed to strengthen the lungs and prevent coughs, improve the constitution and prolong life.

Commenting on claims that the industry is health hazard and a threat to heritage, Loh said it was not justified to focus on a few errant swiftlet breeders.

“It has been estimated that at least 8.3% out of an estimated 3,500 abandoned pre-war buildings have been re-stored and rehabilitated by bird nest breeders.


Swiftlets flying to their nests on the ceiling beams.

“There are many swiftlet houses in pre-war buildings which have been beautifully restored in keeping with its heritage features,” she said.

A recent visit by The Star to the swiftlets’ breeding ground saw the houses well renovated and maintained. There was also no stagnant water in the premises as breeders used humidifier machines to control the humidity.

“Heritage has to be sustainable. It is not enough to have a heritage status if there are no businesses that will bring the right level of income to support and sustain heritage development,” she said.

On the matter of breeders using tweeters to attract the birds to the houses, Loh said the state government could come out with a directive to limit the decibel so that it would not disturb the neighbours.

“And the droppings that we see outside are actually that of the pigeons’ as swiftlets are very parti-cular and they only release their droppings in the house.

“The breeders clean the bird houses weekly as the swiftlets like a clean premises. The Health Department could issue breeders with a health certificate which can be revoked if the cleanliness is not maintained,” she said.