Malaysia

Aquaculture will be the main driving force in expanding fisheries output in future with a 400,000mt increase in aquacultural production targeted during the Ninth Plan period, while marine capture fisheries output is targeted to rise by 200,000mt.

“The focus now is aquaculture as most of our marine fisheries resources are used except off East Malaysia,” explained a senior official at the Fisheries Development Authority of Malaysia, “There has been no granting of fishing boat licenses for coastal fisheries for over a decade except for offshore over 30 miles off the east coast of Peninsular Malaysia, and off Sabah and Sarawak in East Malaysia. For the past five years the number of offshore licenses has stabilised.”

Fisheries has been identified as a strategic sector in the government’s programme to increase domestic food production. In addition to increasing domestic food supply, the government wants to develop the export potential of fisheries as part of wider efforts to increase rural employment and tackle poverty among coastal communities.

“There is still a deficit in Malaysia’s balance of trade in food and the government’s emphasis is to fill the gap with fish and aquaculture,” the official said, “The government is banking on the fishery sector to produce 600,000mt more by 2010. The 200,000mt marine capture increase will come from East Malaysia and Indian Ocean tuna. Tuna is the new fish commodity initiated by the government.”

Official support for the tuna fishing development is being provided through development of Malaysia International Tuna Port at Batu Muang on Penang Island which lies off the west coast of Peninsular Malaysia. Penang has been selected for construction of the tuna port because of its closeness to the Indian Ocean and its well developed port and airport cargo transport facilities for shipping tuna to Japan and other important East Asian markets.

Construction of facilities to support development of tuna fishing activities continues. The temporary jetty at Batu Maung is being expanded while efforts are underway to attract foreign vessels to use the port which currently serves Malaysia’s small but growing tuna fishing fleet.

“We are trying to woo Taiwanese tuna vessels fishing in the Indian Ocean to land their catch in Penang,” the official revealed, “We are doing a lot of promotion so tuna can boost our fisheries production. Tuna is for local consumption and export to offset the food import deficit. Our target is 200 tuna fishing vessels.”

Although cold storage facilities have yet to be constructed at the tuna fishing port, land has been allocated in Penang for tuna processing factories, cold storage and other support facilities. The government has approved the use of incentives including tax breaks to attract investment in the tuna fishing sector with the result that a number of investors already have obtained loans to construct various facilities.

“Development of tuna fishing has been a bit slow because of the hike in fuel prices,” the official noted, “Malaysia’s domestic fishing industry is subsidised in fuel costs but not tuna fishing because it involves international waters capture.”

In fact, the government’s fishing boat fuel subsidy programme has become an important support mechanism for the marine fishing industry by protecting fishermen from rising fuel prices. Prior to the introduction of the fuel subsidy programme the number of fishing boats in operation often decreased during periods of high fuel prices. With lower income consumers unable to afford high fish prices caused by high fuel costs, the subsidies help stabilise local fish retail prices and maintain fish consumption, consequently reducing the impact of high fuel prices on fishermen’s incomes.

“We want to protect consumers against increases in fish prices. Fishermen want a higher price for their catch so the government intervened with fuel subsidies to protect food production and to reduce food imports,” the official explained.

“Fisheries has been identified by the Ministry of Agriculture to bridge the food trade gap. We supply only 25% of our beef and mutton consumption but in poultry meat production we are self sufficient.”

According to Fishery Department figures, Malaysia produces about 1.5 million mt of fishery products annually of which about 85% are marine capture fish, the rest aquacultural production. The total value of the fisheries output is more than US$1.5 billion a year.

Most of the marine catch are pelagic fish with Indian mackerel, round scad, squid, tuna and bream being among the major species caught. Shrimp are important as well with a significant share of the wild catch being exported.

Domestic fish supply is about 1.45 million mt a year with almost 500,0000mt of fishery products being imported to meet local demand.

About 300,000mt or 20% of the total fish production is used for fishmeal while around 260,000mt is exported, mainly shrimp, tuna and other high value species.

Fishery Department statistics show that Malaysia’s fishing fleet numbers about 36,000 vessels of which about half are small boats fitted with outboard motors. The national fleet includes around 6,000 trawlers which account for about 57% of the total catch. The purse seiner fleet numbers about 900 vessels and accounts for 22% of the national catch.

The number of fishermen has declined over the past decade and about 20% of the total 110,000 workforce estimated to be involved in fishing are foreign nationals, mostly working on trawlers and purse seiners. About 22,000 of the fisheries workforce is estimated to be employed in the aquaculture sector.

Meanwhile, Malaysia’s Fishery Department calculates that per capita annual consumption of fishery products is about 52kg and has set a target of 56kg per year by 2010. Malaysia’s per capita fish consumption is about double the average in neighbouring Thailand and in China, for example, but still below levels in Japan and South Korea.

Fish is a daily food item for many Malaysians. Most fish is eaten fried or served in a curry sauce by the Malay, Chinese and Indian communities.

Currently Malaysia imports about 30% of its total fish consumption requirements. Sardines, Indian mackerel and pomfret are among the major imported species. Most sardines are canned for local consumption.

“Per capita fish consumption is going up as fish is cheap protein compared to beef and people are health conscious,” the official said, “Malaysians love seafood. Until now people prefer fresh fish, especially marine fish. If the fish are frozen people buy the whole fish or gutted fish.”

“There is a lot of freshwater fish potential but it is not popular because of the muddy taste. Now mostly catfish fry are eaten cooked in a gravy as a whole fish; Also, smoked catfish. People prefer to buy catfish live in the market and take them home to cook.”

With aquaculture targeted for development, the government is supporting efforts to develop aquacultural schemes in coastal areas and is providing funding for new fish farming technology to be adopted.

As land control is exercised by Malaysia’s individual state governments, the national government is working with state governments to promote aquaculture including the development of aquaculture industry zones.

“We are encouraging the private sector to come in. The national government is providing infrastructure such as roads, electricity supply and freshwater,” the official explained, “There is success already in some states such as Pahang in coastal sandy areas where ponds are used, also closed systems in tanks.”

Among government backed pilot aquaculture schemes is one in Selangor state with barramundi using Australian technology. Four other pilot schemes using barramundi have been approved for implementation shortly.

“We want to alleviate poverty among fishermen. They will participate in these projects run by the private sector,” the official said, “We estimate one barramundi scheme will produce 300mt a year. We have five projects, some states have their own. Now our input is fish fry in Pahang but they will have their own local supply in future. Baramundi is a brackish water fish but we have conditioned them to live in freshwater.”

Government plans to expand fisheries production are aimed at boosting exports as well as increasing food supplies to the domestic market. Shrimp farming is the main source of exports at present. Further growth is expected as official support is given to schemes aiming to alleviate poverty among coastal fishing communities.

However, Malaysia faces competition from Thailand and Vietnam in developing shrimp exports. Higher labour costs and the need to import corn and soy meal for feed compared with Vietnam, for example, may limit Malaysia’s aquacultural export potential in future.

“We have to go to aquaculture as marine fisheries has no potential for new production and high fuel prices,” the official said, “But aquaculture has its limitations. Production is for local consumption but we hope new quality standards can produce high end fishery products and maybe penetrate the European market if we can get European Union accreditation and given the right promotion.”

“Our shrimp exports already have penetrated the European and United States markets. Our fishery exports are worth about US$110 million a year of which about 75% is shrimp. We have switched to rearing new species and the export price is competitive.”

However, as World Fishing was preparing to go to press, news emerged of a possible setback to government plans to expand fisheries exports after European Union officials announced at the end of June that the EU is considering banning Malaysian fish and seafood imports due to health concerns. The possible ban follows an April visit by EU health inspectors to various Malaysian fish farms.

“The outcome is still under consideration,” the Associated Press reported Geert Anckaert, a senior official at the European Commission office in Kuala Lumpur, as saying. He added that a decision was due to be made shortly, but declined to give details.

EU officials in 2005 discovered shortfalls in the safety of Malaysian seafood exports and subsequently launched a programme to help educate local officials about EU's health regulations, Anckaert said. Malaysia’s local newspaper, The Star, citing an EU draft on the matter, said two-thirds of Malaysian vessels and establishments visited didn't comply with the EU's strict hygiene and other regulations on fishery imports.