Potential fishery industry activities and financial aspects of east Malaysian marine fisheries

Abstract

The South China Sea separates East Malaysia from Peninsular Malaysia that is consisted of two big states; Sarawak and Sabah. The marine resources of peninsular Malaysia have been adequately explored in last few decades whereas East Malaysian marine fisheries resources are still potential to be explored. The fisheries sector of Malaysia plays an important role by generating income and employment with foreign exchange. The contribution of marine captured fisheries was up to 89.8% of the total fish production with a value of RM3.81 billion in 1998 (Annual Fisheries Statistics, 1998). The Exclusive Economic Zone (EEZ) of Malaysia in the South China Sea is approximately 198,173 km2 (Earth trend, 2004). Mainly the bulk of the unexploited resources come from offshore demersal fish, small pelagic fish, coastal tuna and oceanic tuna. Trash and low value fishes are usually dumped into the sea considering it has no market value. These unwanted fishes are potential as raw material for making fishmeal that could generate good profit. Despite having good resource base due to lack of ready and skillful labor with infrastructure, port facilities and expert advices, East Malaysian fisheries sector is not adequately contributive to the economy of the country. The study attempted to find out the potential fishing industry activities in East Malaysia. It also focuses on the financial aspects of various fisheries related activities such as fishmeal plant and ice plant by carrying out a simplified benefit-cost analysis. Fishery business makes much profit not from the capture side rather from the fish processing, marketing, ice plant and fish storage services. The study recommends that establishing and facilitating fishery industries is potential to contribute to the sector as well as to the economy significantly.East Malaysian marine fishery, Fishing industry, financial aspects, Benefit-cost ratio