(WDRCF/82/WP2)

ANNEX F
COUNTRY SITUATION PAPER—MALAYSIA (Peninsular)

The Status of the Rural Coastal Fisheries in Peninsular Malaysia

by

A. bin Ismail, S. bin Lamin and N. bt. Omar

1 INTRODUCTION

Malaysia is a federation consisting of 11 states of the former federation of Malaya now jointly known as Peninsular Malaysia, and the states of Sabah and Sarawak on the island of Borneo. About 85 percent of the total fish catch is accounted for by the fishing fleet based in Peninsular Malaysia. Both Sabah and Sarawak have fisheries of growing commercial importance, particularly for shellfishes.

It is estimated that there are about 103 000 fishermen in Malaysia of which 90 percent are still fishing in coastal waters not more than 12 miles from the shore. The lack of capital, infrastructure, skills and knowledge of the resources beyond these waters are the main causes presently confining fishing operations within coastal inshore waters. It is believed that the resources in a number of areas have been overexploited. In Peninsular Malaysia as a whole, there are some 30520 fishing craft (1980), the majority being relatively small boats with engines of low power. In the West Coast of Peninsular Malaysia, there are about 22 000 vessels of various sizes and types of which about 80 percent are mechanized mainly with inboard motors. In Peninsular Malaysia alone, there are in operation only 263 units of vessels exceeding 50 tons.

2. TRENDS OF THE CAPTURE FISHERIES IN PENINSULAR MALAYSIA

The most important technological development was the introduction of bottom trawl in the early sixties. During the years 1961 to 1968, marine fish landings in Peninsular Malaysia rose at an average annual rate of 12 percent. In 1970–1980 landings rose at a slightly lower rate, i.e., 11 percent. Production has now reached a level where further expansion could lead to a disastrous outcome; this is especially true for the West Coast where the majority of the fish is landed.

Though the total landings are continuing to increase, a closer look at the landing data reveals a fishery that is beyond the point of optimum exploitation or that has more or less surpassed the level of maximum sustainable yield (MSY).

¹ Summarized from the Malaysian Annual Fisheries Statistics, 1980
² West Coast consists of the states of Perlis, Kedah, Penang, Perak, Selangor, Negreri Sembilan, Malacca and West Johore.
³ East Coast consists of states of Kelaltan, Trengganu, Pahang and East Johore.

SEMENANJUNG MALAYSIA - DAERAH-DAERAH PERIKANAN
PENINSULAR MALAYSIA - FISHERIES DISTRICTS

LEGEND :
- - - - State Boundary
          Fisheries Administrative Districts
    •     State Director of Fisheries
    +    Fisheries Assitant

2.1 West Coast

The West Coast fisheries are dependent on the fish resources of the Malacca Straits. This stretch of water, though narrow, is reasonably abundant in fish resources easily accessible to fishermen throughout the year, and has a long coastline along which good infrastructure and numerous urban markets are located. This combination of factors has contributed to the tremendous growth of the fishery here from the mid-1960's to the present time. Both mechanization of the fishing industry, as well as the advent of the trawler during this period, have expedited growth of the fisheries on the West Coast. The total fish landings rose from 234 000 tons in 1970 to around 493 500 tons in 1980 or an increase of 111 percent. However, when the total landings are analyzed by type of fish resource (Fig.1 and Table 2) the picture that emerges gives rise to serious concern to both fisheries planners and managers.

Fig. 1 The trend of fish landings by major taxa in the West Coast of Peninsular Malaysia for the period 1970–1980.

¹ Summarized from the Malaysian Annual Fisheries Statistics, 1980.

2.2 East Coast

Compared to the West Coast, the fisheries of the East Coast is not as intensely fished as on the West Coast. Though there has been considerable growth in the fisheries here during the 1970's, the pace of development is much slower than the West Coast. Total fish landings on the East Coast have doubled from about 64 800 tons in 1970 to 130 400 tons in 1980. The growth of type of resource is analyzed in Fig. 2.

Table 2 indicates that the prospects for further growth in the coastal fisheries sector of the West Coast is practically zero. In contrast, the fish resources on the East Coast are not as intensely fished as those on the West Coast. This tends to leave some room for moderate expansion of the East Coast fisheries.

Although the annual landings of demersal fishes in the East Coast is in the region of 45 000 tons considerably below the estimated MSY of 100 000 tons, the amount of the available resources taken by foreign nationals brings the total annual landings close to the MSY. The estimated MSY for prawn in the East Coast is 5 000–6 000 tons. The present annual landing of 4 000 tons indicates that the prawn resource is being exploited near the MSY level. In the case of the landings of pelagic fish there have been fluctuations. This is considered natural as pelagic species are not a resident resource. As the MSY estimate is within 56 000–75 000 tons, the landings of pelagic fish in the future will probably continue to oscillate within the MSY level. On the whole, the potential for further expansion of coastal fisheries in the East Coast is very little. Accordingly, the development alternatives which should be considered are the development of deep-sea fisheries and coastal aquaculture. However, these require investments and introduction of new technologies.

Another step which could be classified as a development alternative would be to curtail, or at least control fishing in Malaysian waters by foreign trawlers. Trawling activities apart from non-selectively scooping up a large quantity of fish (estimated at 40 000 tons off the East Coast), often incurs conflicts of interest with Malaysian fishermen fishing with traps and set nets.

3. PRINCIPAL CHANGES EXPERIENCED BY THE SMALL-SCALE SUB-SECTOR

The incidence of poverty in Peninsular Malaysia for the population at large has decreased from 49 percent in 1970 to 29 percent in 1980. Poverty among fishermen however, is still significant. It is estimated that in 1980, the incidence of poverty among fishermen is about 45 percent or 19 400 out of 42 800 fishing households. This figure exceeds that of any other identifiable group except padi small-holders, 55 percent of which are considered in a state of poverty. The majority (68 percent) of the poor fishermen are in the East Coast, though pockets of poverty exist along the West Coast of Peninsular Malaysia, especially in the states of Kedah, Selangor and Johore.

Two factors stand out as causes of the high poverty rate among fishermen. Perhaps the most fundamental cause, particularly on the West Coast which supports over half of Malaysia's fishermen, is the depletion of inshore marine resources, which provide the livelihood for the small traditional fishermen. The second factor responsible for the poverty is the fact that the growth that has taken place in the fisheries sector has come mainly from the introduction of trawling. This development requires large capital-intensive boats which are beyond the financial means of the majority of fishermen. In the past decade, as the size of the catch has fallen per capita and even at times in absolute terms, modernization of the industry has led to a reduced demand for labour, and the traditional fishermen have failed to make significant gains. The implication drawn from this finding was that the Government's programme should concentrate on the East Coast.

Fig. 2 The trend of fish landings by major taxa in the East Coast of Peninsular Malaysia for the period 1970–1980

An inshore marine resources have declined, cultivation of fish, or aquaculture has gained attention. Before the intensive use of pesticides and the advent of double cropping on a broad scale, padi fields provided the main supply of fish for Malaysia's rural population. These include reservoirs, abandoned mines, rivers and irrigation canals for freshwater fish, and mangrove swamps and mudflats for brackishwater fish. The total yield of inland fresh and brackishwater fish is still small being about 3 percent of the total fish landings by weight, from about 5 000 hectares of freshwater and 800 hectares of brackishwater ponds.

4. DEVELOPMENT UNDERTAKINGS

The development policy of the fisheries sector is formulated in line with the New Economic Policy of eradicating poverty, restructuring the society and providing employment for the increasing population. The Government is giving priority to upgrading the small-scale fishermen who form one of the most socio-economically depressed groups in the country. This is reflected by the increasing financial budgets in the series of Malaysian five-year development plans as follows.

Note: US$1.00 = M$2.30

The broad guidelines for the development of small-scale fishermen in Malaysia are:

1. to increase the income of small-scale fishermen; and
2. to restructure and improve their socio-economic position.

In achieving these objectives, the approaches currently adopted are as follows:

1. to move whenever possible underemployed fishermen into the more modern and productive sector of the fishing industry:

2. to improve the productivity of the remaining fishermen through improvements in technology, provision of credit, infrastructure facilities, training and extension services, and the promotion of fishermen's organization;

3. to redeploy the surplus labour to aquaculture, land-based occupations or the offshore fisheries sector; and

4. to provide special attention to the educational and vocational training needs of children and youth from fishing communities, and to equip them for employment in other sectors of the economy.

4.1 Specific Programmes

In view of the magnitude and multitude of problems encountered in the development of the coastal fisheries sector, the programmes designed for this are broad ranging. These programmes are being channelled through various agencies, the main ones are the Fisheries Department and Fisheries Development Authority (MAJUIKAN). The Fisheries Department provides the facilities and infrastructure needed for the expansion and modernization of the fishing industry; this infrastructure includes harbours, research, extension and training. The Fisheries Development Authority (MAJUIKAN) will involve itself either directly or indirectly in the commercial aspects of production, processing and marketing. Some of the programmes directed at the development of inshore fisheries are outlined below.

4.1.1 Modernization of the small-scale fisheries

The small-scale fisheries are essentially traditional fisheries characterized by low investment and technology. On recognizing the need to upgrade this sub-sector, the Government has a programme financed by the Asian Development Bank to build 200 multi-purpose fishing vessels (12-15 GRT) based on improved design and technology for the fishermen. The objective of this programme is to enable small-scale fishermen to own more efficient and productive fishing units.

4.1.2 Improvement of the productivity of the small-scale fishermen

(a) Subsidy scheme

Lack of capital is a serious problem plaguing the small-scale fishermen. This has prevented them from owning productive assets and acquiring more efficient fishing gear and equipment to increase their productivity. To overcome this problem and at the same time to release fishermen from the shackle of middlemen who often charge a high interest for their invested capital, the Fisheries Department operates a subsidy scheme. The subsidy scheme is directed at the needy and deserving fishermen for the purpose of purchasing new fishing units, inboard engines, outboard engines, fishing gears, insulated fish boxes and fishing aids to increase their productivity.

(b) Credit facilities

Credit facilities on easier terms are made available to small-scale fishermen through two Government-sponsored financial institutions, namely the Agricultural Bank of Malaysia and the Credit Guarantee Corporation.

The Agricultural Bank of Malaysia grants loans for the purchase of fishing vessels, engines and fishing gear on less stringent terms, e.g., lower interest rates and longer repayment period, than those normally imposed by commercial banking institutions. However, prospective loan applicants can only borrow up to 80 percent of the cost of the goods, and must provide security in the form of fixed assets.

The Credit Guarantee Corporation provides landing up to a maximum of M$30 000 without security and M$100 000 with security from commercial banks. This is a Government-sponsored corporation and it will guarantee up to 60 percent of the loan, and the remaining 40 percent will be borne by the commercial bank which issues the loan concerned.

4.1.3 Rehabilitation of surplus fishermen

(a) Current constraints

The indications are there is a vast potential for aquaculture development in Malaysia, but it is acknowledged there are still numerous problems to be overcome before its development can be fully promoted. The main problem is the lack of expertise and technology to spearhead its development. Several fish breeding stations and hatcheries are underway, to mass produce fish seeds for distribution to fish culturists. This activity is complemented by aquaculture training courses for farmers, held at the various aquaculture fisheries training centres.

(b) Land schemes

Agriculture provides another source of alternative employment for surplus fishermen, particularly those with experience of background farming on a part-time basis, to supplement their income. So far, a total of 800 fishermen have been absorbed by land schemes opened by the Federal Land Development Authority (FELDA) and the Federal Land Consolidation and Rehabilitation Authority (FELCRA), whereby the authorities concerned not only develop the land (rubber and oil palm) and hand it over to the settlers for maintenance, but also handle the marketing and processing of their produce. As the land scheme has met with considerable success, the Government is developing a 20 000 acre oil palm plantation at Rasau-Kertah in Trengganu, to cater specifically for fishermen.

(c) Offshore fisheries

Acknowledging that the inshore fishing areas are fully exploited and recognizing the availability of new potential resources with the implementation of the EEZ, the Government is providing the incentives in the form of subsidies for fishermen to venture far out into the offshore areas.

During the Fourth Malaysia Plan, it is estimated that the cost of the Government for the subsidy programme will be at MS19 321 000. The capital inputs for offshore fishing are very high; high interest risks, conditions of weather and the lack of direct control by the owner and investor over the means of production, further accentuate the problems in this relatively new fishery. As a further incentive, the Government has abolished import taxes on the larger marine engines necessary for offshore fishery development.

It is to be hoped that redeployment of fishermen into the offshore fisheries sector will reduce the pressure in the inshore fisheries areas.

4.1.4 Infrastructure facilities

One of the basic needs of the small-scale fisheries communities often located in isolated places is shore-based facilities to support their fishing operations. There is an ongoing programme of the Government to meet this basic need of the industry through the provision of ancillary facilities such as guiding lights, landing jetties, packing sheds, cold rooms and slipways. These facilities have the effect of relieving some of the hardships of fishing and reducing post-harvest losses due to delays in handling and lack of cold storage facilities.

4.1.5 Extension and training

The extension service constitutes an important activity in upgrading the operational efficiency of the small-scale fisheries. This is done through publication of pamphlets, fishermen's newsletters, film shows, talks, exhibitions and demonstrations.

There are two Marine Fisheries Training Centres in Malaysia, catering mainly for the small-scale fishermen. One is located in Penang and the other in Trengganu. The training programmes of these two centres are aimed at upgrading the skills of traditional fishermen. The subjects covered include simple navigation, fishing technique and maintenance of marine engines.

A recent development is the establishment of an extension field service unit, with the help of British Technical Aid. This unit is primarily to provide services in the areas of fish handling and processing directly to and for the fishermen and his family. The first group of 20 trained officers have been placed in the field and a second group is currently undergoing their 12-month course at the Fisheries Institute in Penang.

4.1.6 Fishermen's organization

The organization of fishermen into groups (associations/ cooperative societies) is one of the measures adopted in improving the socio-economic well-being of the fishermen. By grouping together, they are able to take advantage of the economies of scale through bulk purchase of inputs such as fuel and ice; being together also increases their bargaining power.

In addition, the pooling of both human and capital resources under the banner of fishermen's associations enables them to undertake various economic activities such as marketing, transportation and ice production and distribution. To promote the activities of the fishermen's organization, the Government provides management and launching grants to enable the organization to undertake these commercial activities.

4.1.7 Education and vocational training

The measures described so far are aimed at improving the economic position of the fishermen by increasing their productivity through modernization or provision of alternative employment. However, to ensure that the surplus labour in the fishing industry does not increase excessively, there is a need to reduce the constant drift of school dropouts and unemployed youths into the fishing industry. Some of the steps taken to reduce this drift are as follows:

(a) Tuition class and material assistance

Many of the school dropouts in the fishing communities are due to financial difficulties and adverse environmental conditions which are not conducive to study. One of the steps taken to help this problem is the organization of tuition classes and provision of educational aids to deserving fishermen's children, to enable them to catch up with their studies and complete their formal education.

(b) Vocational training

For children who are unable to continue their education to academic backwardness, and for the unemployed youths in the fishing communities, there is an ongoing programme whereby those interested in learning a new trade, e.g., mechanics, carpentry, electrical etc., are sent to the various vocational training institutions in the country for specific courses.

4.1.8 Integrated pilot project

So far the efforts directed at improving the small-scale fishermen's community have been more or less on a loose or piecemeal basis. Though some success has been achieved, they were not sufficient to generate the desired impact. This has led to the concept of an integrated approach in developing the small-scale fisheries community. In cooperation with the South China Sea Fisheries Development and Coordinating Programme, there is now being implemented a pilot “Fisheries Integrated Development Project” in Besut, Trengganu. For the period 1981–1983, the Canadian International Development Agency (CIDA) is providing 1.7 million Canadian dollars to implement the project through the Food and Agriculture Organization. It is hoped that this pilot project will evolve a model for the development of small-scale fisheries in Malaysia.

5. PROBLEM PRESENTLY CONFRONTING THE SMALL-SCALE FISHERMEN

(a) Resource aspects

The resources available for fisheries can be grouped into inshore fisheries resource, offshore fisheries resource and aquaculture resource.

It is generally acknowledged that the inshore fisheries resource is being exploited beyond or within the MSY, and further more this resource, which provides the livelihood for small-scale traditional fishermen, is on the point of depletion. Thus, as the catch has fallen in per capita the livelihood of the traditional fishermen is being threatened.

The growth that has taken place in this sector has come mainly from the development of bottom trawl. The crew for a trawler are hired from the large pool of the unemployed rather than the traditional fishermen. In the years around 1970 the number of trawlers continued to grow but the catch per trawler fell dramatically. In 1967, the average annual catch per trawler was 90 tons, but by 1972 it had fallen to 16 tons (Table 3).

* Source: Khoo Khay Huat “Kajian Ekonomi Malaysia” June December 1976.

Khoo also indicated that the average earnings per crew per month had decreased from M$175 in 1966 to M$98 in 1972. The structure of this part of the fishing industry, as it is now, simply cannot adequately support the number of people which depended upon it.

The offshore fisheries resource has not been fully ascertained. It is estimated that there are about 350 000 tons of demersal and 152 000 tons of pelagic fish which could be exploited. This sector requires considerable expertise as well as high capital investment. With respect to aquaculture, the scope for development is considerable; the area available for development is estimated at 123 000 ha in Peninsular Malaysia, 140 000 ha in the State of Sabah and 87 000 ha in the State of Sarawak. One of the major limiting factors for aquaculture development in Malaysia is the lack of seeds; it is imperative therefore that efficient technology be developed for mass production of seeds.

(b) Marketing, distribution and physical infrastructure

Fish marketing is a complex issue involving a chain of activities, and a large number of market intermediaries from the time the fish is landed until it reaches the consumer. Most of the fish is taken up by the collectors and wholesalers at prearranged prices, or sent to terminal markets for sale. The bulk of the available supply is sent to the urban consuming centres; consumers in the rural areas and landing centres are often bypassed.

The physical infrastructural facilities for marketing are generally lacking and are inadequate to meet the demands of the industry. The lack of adequate infrastructure has resulted in considerable post-harvest losses, and this has been the incentive for boat-owners and financiers to build their own private jetties and other landing facilities. These costs however, have been passed on to both the fishermen employees and consumers.

(c) Lack of proper and firm management of the fishery resources

This has resulted in a situation of uncontrolled exploitation especially along the West Coast of Peninsular Malaysia. The sizeable number of illegal fishing vessels should be brought under control, as well as ensuring proper and effective conservation of known fish-breeding grounds.

(d) Lack of research inputs

The lack of systematic research inputs to provide more indepth information on the fishery resources is an inhibiting factor against the establishment of scientific management which would provide optimal exploitation of the available fishery resource, besides being useful for upgrading and modernizing fishing techniques.

(e) Lack of capital

Almost all fishermen working in the fishing industry are merely employees and manual workers. The meagre income obtained does not enable them to save, much less to buy equipment for themselves. More often than not, they are quite heavily and continually indebted to middlemen and shoulder extra burdens as such.

(f) Lack of skills

Lack of skills among the fishing communities have been one of the causes of the relatively low productivity, and the high rate of mishandling engines and fishing gears can also be attributed to this problem.

(g) Lack of extension efforts

Lack of extension efforts are believed to have caused the general lethergy in the fishing communities, in terms of attitude, technology ang general knowledge.

(h) Lack of efforts to improve the existing socio-economic position

A lack of effort exists to improve the socio-economic positions in fishing villages. This has resulted in shortages of adequate facilities and social amenities such as proper housing, basic schooling needs of fishermen's children, water supply, electricity and access roads, among others.

6. DISCUSSION

The two main objectives of fisheries development in Malaysia are to increase fish production to meet the growing national demand and to increase the socio-economic status of fishermen. The strategy adopted so far is to develop a modern offshore sector and to elevate the depressed status of the small-scale sector. By doing so, the Government hopes to develop a well-balanced industry comprising a modern commercial sector and an efficient small-scale sector co-existing with each other. The scope for development will be dependent upon the availability of fish-producing areas. In the case of marine aquatic resources, the Exclusive Economic Zone (EEZ) area for Malaysia of some 140 000 square miles in the South China Sea, holds considerable potential. It is estimated that there is a total of 502 000 tons of resources available, consisting of 350 000 tons of demersal and 152 000 tons of pelagic fish. These resources lie off the East Coast of Peninsular Malaysia and off the coasts of the States of Sabah and Sarawak. There is however, a paucity of data on the nature, composition, density and distribution of these potential resources. There is thus, a need to clearly identify the extent, density and location of the fishable stocks for eventual exploitation. Technical assistance in the form of expertise and equipment is required to carry out this programme, and at the same time to train local counterparts for future management. Assistance is particularly needed in the field of acoustic survey techniques and their operation.

Aquaculture is still in its early stages of development in Malaysia. From the viewpoint of resources, the potential for aquaculture is tremendous. A rough estimate shows that the potential is in the region of 350 000 ha comprising 205 000 ha of mangrove swamps, 10 000 ha of mudflats and coastal waters, and 135 000 ha of inland areas. Aquaculture in the coastal areas holds considerable promise for the small-scale fishermen, because of its prospects for generating employment. As regards the seed supply problem, it is imperative that hatcheries are constructed and efficient technology be developed for the mass production of seeds. Technology for artificial breeding of several suitable species of finfish and penaeid prawn is already available within the region. What is needed now is the transfer of the available technology to Malaysia. This could be best achieved through intra-regional arrangements by the exchange of expertise among the countries in the region Experts with practical skills and experience could be seconded to the recipient country to carry out the work. This is particularly important for Malaysia because the small-scale fisheries suffer from underemployment and unemployment, and as such the development of aquaculture could provide an outlet for siphoning off the surplus labour to more gainful employment within a fishery concept. Top priority is thus accorded by the Government to accelarate the development of aquaculture in Malaysia. There are however, constraints in the endeavour to develop aquaculture. The major ones are a lack of technical information on the suitability of potential areas and the inadequate supply of seed for promoting its development. In view of the above situation, there is an urgent need to carry out a comprehensive, technical and feasibility survey of all areas, and identify suitable sites for development. Technical assistance in the form of expertise and equipment would be required to carry out the survey.

The small-scale fishing community represents one of the most depressed groups in the country today. Fishing villages are mainly located at river mouths, which are often isolated and lacking in physical, social and public amenities such as water supply, electricity, medical clinics, schools and proper housing. As a result, the living conditions in fishing villages are usually crowded and unsanitary. There is a need to improve the environmental setup of the fishing community and upgrade the quality of life of the small-scale fishermen, to a level whereby they are able to understand, appreciate and finally accept the necessity for changes in the context of modern day life and living.

REFERENCES

1. Annual Fisheries Statistics, Malaysia, published by the Ministry of Agriculture, Malaysia, 1980.

2. Fourth Malaysia Plan (1981–1985), published by the Director General of National Printing, 1981.

3. Khoo Khay Huat “Optimal Utilization and Management of Fishery Resources” Kajian Ekonomi Malaysia June/December 1976.

4. Tan Cheng Kiet, country report on Malaysia; 19th session Indo-Pacific Fisheries Commission, “Symposium on the Development and Management of Small-Scale Fisheries”, Kyoto, Japan, 1980.

5. World Bank Document, Report No. 2655-MA, “Malaysia: Selected Issues in Rural Poverty, 1980”.

6. Raymond Necklen, Project Director, Besut Fisheries Integrated Development Project - Personal communication (1982).