Malaysia is expected to have 63,000 swiftlet premises in 2020, producing 870 metric tonnes of bird's nest worth RM3.5 billion.

Sabah Deputy Chief Minister Datuk Seri Yahya Hussin said this is based on the high value and large potential for swiftlet farming in the country.

He said in 2010 alone, the production of bird's nest was around 290 metric tonnes valued at RM1.2 billion.

"The government has identified swiftlet farming as a high potential industry, and as such, accorded it priority in the Economic Transformation Programme (ETP)," he added.

He was speaking at a ceremony to officiate the opening of the Certification Seminar for good swiftlet Farm Practices Scheme (SALT) here today.

Yahya, who is also the state Agriculture and Food Industries Minister said in Sabah, the production of Edible Bird Nest (EBN) had long been practiced, particularly, traditional bird's nest of high quality from caves, including Gua Guomantong and Gua Madai.

He said the export value of bird's nest contributed by Sabah was in the range of about RM13 million to RM17 million annually, with the main markets being Hong Kong and China.

He said apart from caves, the rearing of swiftlets was on the rise.

"According to the Sabah Wildlife Department, in just 2009, there were 500 swiftlet premises in the state," he added.

Yahya said however, over the last two years, the market for bird's nest had fallen, following allegations that it contained nitrite which could endanger the health of consumers.

"Following enforcement to ensure zero nitrite by China, the price of bird's nest suffered a sudden fall of up to 50 per cent.

"The Malaysian government however, has discussed with its Chinese counterpart, on ensuring that the quality of bird's nest from the country met the standards set," he added.

Yahya said that for last year, 43 swiftlet premises in the state had met the SALT certification, and in 2013,, the Department of Veterinary Services and Animal Husbandry (JPHPT) had targeted 300 premises.

He expressed the hope that more plants for the processing of bird's nest would be established, making Sabah the main producer of the product of high quality, which also met the standards of importing countries.