ABSTRACT
Aquaculture is a vital industry that ensures Malaysia's food security. Malaysia produces more than 400,000 tons of aquaculture products yearly, accounting for around 22% of the nation's total fish consumption. Although this industry faces various challenges, the latest technological advancements offer hope for its continued growth. Technologies such as artificial intelligence (AI) in farm operations can directly address some of the challenges faced by the industry. AI, the Internet of Things (IoT), robotics, cloud computing, and 5G networks are among the elements of smart aquaculture. Developed countries like Norway and Japan are leaders in developing these technologies. In general, the application of smart technology in the aquaculture industry is still low and in its nascent stage. Malaysia aims to be included as one of the technology players and, thus, promote these technologies within its aquaculture sector. The Malaysian government has formulated various policies to catalyze rapid adoption by industry players. However, adoption remains limited due to challenges such as the high initial investment costs and the availability of these technologies for practical use in Malaysia. The readiness of farmers to adopt these technologies remains to be fully assessed, posing challenges for policymakers in crafting effective policies to assist Malaysian farmers. Despite the slower progress compared to developed countries that are already advanced in this technology, Malaysia has the right policies in place to further promote the adoption of smart aquaculture.
Keywords: Policy, Aquaculture, Smart technology, Fishery industry
INTRODUCTION
As the world's population continues to grow, the demand for food is increasing at an unprecedented rate, putting pressure on traditional protein sources such as chicken and beef. This surge in demand has also sparked growing interest in alternative protein sources, with fish proving to be a popular option due to its nutritional benefits. However, this increased reliance on fish coincides with the growing threat of declining wild fish populations, raising concerns about the sustainability of depending solely on natural fisheries to meet global protein needs. Many studies have revealed that the world's fish stocks are overexploited or depleted. For instance, global data indicates that captured fisheries' output has decreased from 94.4 million tons in 2000 to 92.18 million tons in 2021 (Ritchie and Roser, 2024).
In response to these challenges, aquaculture has emerged as a vital economic sector that plays a crucial role in ensuring a stable and sufficient food supply for the world's population. Aquaculture, or fish farming, offers a controlled and sustainable method to produce fish and other aquatic species, thereby reducing the pressure on wild fish populations and helping to meet the growing global demand for protein. Aquaculture has been recognized as one of the key alternative sources of fish protein. A global report indicates that aquaculture production has surged from 43.01 million tons in 2000 to 126.64 million tons in 2021 (Ritchie and Roser, 2024).
Reflecting on the global trend, aquaculture serves as a significant source of protein and is a key industry in Malaysia. The country ranks among the world's largest fish consumers, with an average consumption of 57 kg per person annually. Aquaculture not only provides employment opportunities and income but also contributes significantly to the nation's economy, generating RM3.04 billion (approximately US$0.707 billion) each year. Malaysia is positioned 15th globally and 6th in Southeast Asia in terms of aquaculture production, with an annual output exceeding 400,000 tons of fresh aquaculture products.
Malaysia's production of aquaculture products has increased significantly from 167,898 tons in 1960 to 634,875 tons in 2012. However, the trend in aquaculture production has been decreasing since 2012. Statistics from World in Data reveal that production fell from 634,875 tons in 2012 to 506,925 tons in 2015, and further dropped to 427,515 tons in 2017. Aquaculture products comprised only about 23.72% of the total fish landings in 2021, indicating Malaysia's relatively low dependence on aquaculture products. The government is concerned that aquaculture production might continue to decline without direct and indirect interventions.
For any industry to flourish, it requires robust government support. This support can manifest in various forms, including direct assistance and incentives. However, the most crucial aspect is the formulation of government policies that will steer the industry's growth. These policies must be meticulously crafted and supported by comprehensive research to effectively assist the target groups. Malaysia has a track record of developing policies that support and expand various industries. Therefore, the development of well-founded policies is essential to ensure the sustained growth of an industry and to support its intended beneficiaries. This paper aims to explore the Malaysian government's policies that foster the growth of the aquaculture industry, particularly in promoting the adoption of smart aquaculture practices.
AQUACULTURE PRODUCTION IN MALAYSIA
Aquaculture in Malaysia boasts of a rich history dating back to the early 20th century. The introduction of aquaculture by Chinese miners in the 1920s marked the inception of the industry (Hashim & Kathamuthu, 1996). Freshwater fish, such as carp, were cultivated in abandoned tin mining ponds, utilizing the available water resources for their livelihood. As the industry evolved, the Malaysian government actively promoted aquaculture in the 1960s and 1970s to enhance food security and diversify rural incomes (Wayne & Vun, 2016). This era witnessed the adoption of more structured and scientific approaches to aquaculture, including the establishment of research centers and hatcheries. The 1980s and 1990s experienced significant technological advancements and the industry's expansion into marine aquaculture. The introduction of species such as shrimp, grouper, and snapper, along with the development of coastal fish farming, significantly contributed to the industry's growth (Hashim & Kathamuthu, 1996). Malaysia's strategic location with extensive coastal areas and favorable climatic conditions has further facilitated the development of marine aquaculture. In recent years, the Malaysian aquaculture industry has continued to expand, propelled by technological advancements, including integrated Recirculating Aquaculture Systems (RAS).
Aquaculture commodities are currently making remarkable contributions to the fisheries sector, surpassing the previous dominance of traditional marine capture fisheries. The production of aquaculture products increased steadily from the 1960s until 2012, after which it began to decline. In 1960, Malaysia produced only about 7,801 tons of aquaculture products. The industry experienced rapid growth, with production surging to over 634,376.4 tons by 2012 (see Table 1). However, several challenges have emerged within the industry, leading to a significant drop in production such as the emerging of diseases (Fathi et al., 2018) . Table 1 and Figure 1 shows the annual aquaculture production in Malaysia from 2005 to 2023. The data shows a general upward trend in production until 2012, when it peaked at 634,376.4 tons. From 2005 to 2010, production increased steadily, reaching 581,048.4 tons in 2010. However, there was a significant decline between 2011 and 2016, with production falling to 407,387.3 thousand tons in 2016. After that, production fluctuated but remained relatively stable between 2017 and 2021, with figures between 391,465.2 and 427,015.4 tons. In 2022, production recovered significantly, increasing to 573,682.5 tons. This was followed by a slight decline in 2023, with production reaching 506,867.5 tons. Despite fluctuations, the data reflects the resilience of the Malaysian aquaculture sector, with significant recovery in production after periods of decline.
The aquaculture industry in Malaysia is categorized into two main types: freshwater and marine. As of 2023, there were 16,919 freshwater farmers in the country. Freshwater aquaculture farming systems encompass ponds, ex-mining pools, freshwater cages, cement or fiberglass tanks, canvas tanks, and pen culture. Conversely, the number of marine aquaculture farmers was recorded at 21,820. Marine aquaculture systems include brackish water ponds, cages, tanks, and enclosures. Additionally, the line culture system is predominantly utilized for seaweed or algae, as well as for shellfish farming such as mollusks.
The Table 2 provides a detailed overview of aquaculture production in 2023, dividing it into freshwater and brackish water sources in different Malaysian states. Sabah is the largest contributor with a total production of 236,121.1 tons, driven primarily by brackish water aquaculture (234,114.9 tons). Penang and Perak also stand out with 60,562.8 tons and 68,561.6 tons respectively, reflecting a significant contribution from freshwater and brackish water. Kedah's total production reaches 38,828.4 tons, with a significant portion coming from brackish water (30,403.5 tons). States such as Selangor (23,099.1 tonnes), Johor (26,766.7 tonnes) and Pahang (18,728.4 tonnes) also make significant contributions and show a balance between freshwater and brackish water sources. Smaller states such as Melaka, Negeri Sembilan and Terengganu have more modest totals, with Melaka producing 4,348.7 tons and Negeri Sembilan contributing 5,587.4 tons. Labuan and Kuala Lumpur, on the other hand, have the lowest aquaculture production at less than 2 tons combined. Malaysia's total aquaculture production stands at 506,867.5 tons, with brackish water aquaculture being the dominant source at 393,796.9 tons, while freshwater aquaculture accounts for 113,070.5 tons, reflecting the country's heavy reliance on brackish water for the fish farming indicates.
The aquaculture industry in Malaysia features a diverse array of species. Within the freshwater sector, the primary species cultivated are freshwater catfish and channel catfish (locally known as "godmother"), fuelled by robust domestic demand. In the brackish water sector, key species include sea bass, white shrimp, and king prawn, which cater to both export and local markets, underscoring their economic significance and high consumer preference. The emphasis on these species across both sectors underscores their role in fulfilling nutritional and economic demands of the populace, as well as their substantial contribution to Malaysia's standing in global aquaculture.
Most freshwater aquaculture farmers in Malaysia operate on a small to medium scale, typically characterized by family-run or community-based operations. These farmers often employ traditional or low-technology farming methods like freshwater ponds, repurposed mining ponds, and cages. Their production capacity is generally limited, mainly aiming to supply local markets and meet domestic demand for species like freshwater and channel catfish. The smaller scale of these operations is often due to restricted access to capital, land, and advanced technology, necessitating reliance on simpler, less expensive farming practices.
Conversely, the brackish water aquaculture sector comprises several larger, more commercialized entities. These operations are usually well-funded and employ advanced technologies, enabling them to produce species like sea bass, white shrimp, and tiger shrimp at a larger scale. Such companies can serve both domestic and international markets, highlighting their pivotal role within the Malaysian aquaculture sector. The scale of these operations facilitates more efficient production processes, economies of scale, and the capacity for investment in innovations like automated feeding systems, water quality monitoring, and disease control measures, thereby enhancing production levels and market reach.
The aquaculture industry in Malaysia faces at least five significant challenges. Currently, the availability of freshwater areas and land allocated by the state government for aquaculture is constrained by land ownership terms and competition from other economic activities. The availability of suitable water sources critically affects production quality and quantity, making aquaculture farms vulnerable to environmental changes nearby, which could impact the economic viability of the industry. Additionally, disease transmission poses a major threat due to water's role as a disease vector, worsened by Malaysia's tropical climate. Production costs are also rising annually. Environmental pollution from industrial waste and the unpredictable effects of climate change further complicate operations. Perhaps the most pressing issue is the labor shortage; with only about 10% of the workforce engaged in the food production sector, this challenge has contributed to a significant decline in Malaysia's aquaculture output.
APPLICATION OF TECHNOLOGIES IN AQUACULTURE
Traditional aquaculture systems are encumbered by a series of limitations stemming from a cycle of cause and effect. Many aquaculture industries depend heavily on manual labor, which impedes productivity enhancements and underscores the need for data-driven farm management technologies. An alternative to these conventional methods is the development and implementation of advanced technologies. The labor-intensive approach primarily depends on human expertise and incurs significant labour costs. Over time, aquaculture has evolved from traditional labor-intensive methods to mechanized farming, and is progressively moving towards automated systems.
Aquaculture technology is advancing swiftly, propelled by significant breakthroughs in various state-of-the-art technologies. The pressing need for food resources and environmental sustainability has prompted developed nations like Norway in Europe and Japan in Asia to actively lead in the development of these cutting-edge technologies. These countries are committed not only to meeting demand but also to placing a strong emphasis on environmental conservation and sustainability. This commitment is reflected in their strategic initiatives to implement and innovate solutions that harmonize economic development with the protection of natural ecosystems. Through the integration of advanced technologies, these nations strive to forge a path towards a sustainable future where resource use is in concert with the tenets of environmental stewardship and enduring ecological equilibrium.
Central to these innovations is the rapid evolution of artificial intelligence (AI), which is transforming the aquaculture sector by facilitating more efficient, precise, and sustainable practices. Leading the charge, developed countries are actively investing in AI-based technologies, which has catalyzed the rise of numerous startups focused on revolutionizing this domain. Initially, aquaculture technology emphasized the Internet of Things (IoT) for real-time monitoring and control of aquatic environments, but now the industry is seeing a broader integration of AI with other cutting-edge technologies like robotics, cloud computing, 5G, and big data analytics.
AI, in particular, is utilized to optimize various facets of aquaculture, including feeding, health monitoring, environmental management, and yield forecasting. Through automation and the provision of data-driven insights, AI aids in reducing waste, enhancing resource efficiency, and boosting overall productivity. Robotics plays an increasingly vital role as automated systems take on tasks like feeding, cleaning, and monitoring, thereby reducing labor costs and minimizing human impact on sensitive aquatic ecosystems.
The integration of cloud computing and big data further bolsters these advancements by facilitating the collection, storage, and analysis of vast data quantities from IoT sensors and AI systems, which leads to better decision-making and predictive maintenance. Moreover, the adoption of 5G networks allows for quicker, more reliable device communication, enhancing real-time monitoring and control of aquaculture operations. Collectively, these technologies are steering aquaculture towards more sustainable practices, ensuring that the industry can satisfy the escalating global seafood demand while reducing its environmental footprint. The integration of these technologies has the potential to transform aquaculture into a dynamic, progressive, and innovative industry.
However, in Malaysia, the application of technology remains quite moderate. Most farmers employ basic technologies like canvas ponds, cement and brick ponds, and basic water management systems. The adoption of smart technology is relatively low and still in nascent stages. Barriers such as lack of initial capital, the high cost of technology, and insufficient incentives are some of the challenges impeding the technological advancement in this sector. Consequently, there is a pressing need for new directives from the government to make the industry more efficient and productive.
POLICIES ON PROMOTING THE APPLICATION OF TECHNOLOGY
The substantial growth of aquaculture in Malaysia, especially in high-value species like white prawns, tiger prawns, and sea bass, has been propelled by economic demands and supportive government policies. This expansion is pivotal for satisfying both domestic consumption and international market needs, establishing aquaculture as one of Malaysia's key economic sectors. Additionally, it plays an essential role in securing the nation's food supply. However, this growth introduces environmental challenges, including pollution, biodiversity loss, and habitat degradation (Sampantamit et al., 2020).
In general, the advancement of the fishery sub-sector, encompassing both capture fisheries and aquaculture industries, is guided by the National Agricultural and Food Policy (NAP 1.0 and 2.0) and the National Agrifood Policy 2.0 (2021-2030). The National Agrifood Policy seeks to modernize the agri-food sector to ensure future food security. This policy underscores the importance of sustainable agricultural development, including aquaculture, aiming to harmonize economic growth with environmental conservation (Wayne Witus & Wan Vun, 2016). It supports the vision for the nation's agri-food sector to become more sustainable, resilient, and technologically advanced. The goal is to stimulate economic growth, enhance well-being, and prioritize the nation's food security and nutrition. To achieve this modernization, the government encourages the integration of technology throughout the supply chain, from production through processing to the marketing of products.
The National Agricultural and Food Policy for 2021-2030 (DAN 2.0) outlines initiatives for modernization and innovation in agriculture, with aquaculture identified as a crucial component in the transformation of the agricultural and food sector. DAN 2.0 describes intelligent agriculture or aquaculture as encompassing the wide-ranging application and integration of eco-friendly, high-tech solutions in farming practices to enhance both the quality and quantity of outputs. Within the framework of DAN 2.0, the National Food Security Policy Action Plan (2021-2025) provides Malaysia's strategic approach to bolstering food security, including specific directives to foster smart aquaculture. A central policy focus is on encouraging technology adoption throughout the food system, which includes the integration of advanced aquaculture technologies.
The policy's objective to modernize the aquaculture sector is clearly reflected in initiatives such as the super-intensive aquaculture program, which introduces sophisticated farming techniques to boost productivity. It also emphasizes the significance of mechanization and automation to improve the efficiency of food production systems, aquaculture included. The strategic aim is to secure a stable and sustainable food supply by incorporating modern technologies, like those from the Fourth Industrial Revolution (IR 4.0), into the aquaculture industry. The government intends to offer financial assistance and develop infrastructure to ease the adoption of these technologies, tackling issues like high initial costs and adapting technology to local conditions.
In this context, the focus is on fostering an environment conducive to modernization and linking target groups with aquaculture technology providers and smart agriculture initiatives driven by entrepreneurial efforts. The government collaborates closely with the private sector through various agencies to advance smart technologies. Given the current application of smart technology in both agriculture and aquaculture, it's essential to have effective policies that encourage its use in this sector. Such policies can offer the regulatory framework needed for the development and adoption of smart technologies, ensuring their broad application and the industry's ongoing expansion.
Legislation such as the Fisheries Act 1985 and the Environmental Quality Act 1974 tackle environmental issues related to aquaculture. These laws grant authorities the power to regulate waste discharge, safeguard natural resources, and promote sustainable practices within the industry. The requirement for Environmental Impact Assessments (EIA) for large-scale aquaculture ventures further highlights the commitment to environmental conservation. However, there are still gaps to be addressed, especially for smaller-scale operations that might not undergo rigorous environmental review.
Malaysia's aquaculture industry operates within a policy environment shaped by a series of agricultural and environmental policies rather than a specific aquaculture policy. The sector falls primarily under the umbrella of national agricultural policies, with particular acts and regulations focusing on environmental concerns and sustainable practices. The evolution from NAP1 through NAP3 of the National Agriculture Policies reflects Malaysia's shifting approach towards agricultural development, including aquaculture.
These policies have increasingly integrated elements of sustainability, food security, and biosecurity, adapting to both domestic needs and global market requirements. More recent frameworks like the National Agri-food Policy (2021-2030) and the National Aquaculture Residue Monitoring Plan (ARMP) stress the importance of food safety and the prudent use of veterinary drugs in aquaculture. These align with international standards, aiming to ensure that Malaysian aquaculture products are safe for both local consumption and export.
The Aquaculture Action Plan 2020-2030 and the National Fish Health Strategy (2018-2022) further stress the need for a unified strategy in managing fish health, biosecurity, and environmental sustainability in the industry. Additionally, the Malaysia Action Plan on Antimicrobial Resistance (MyAP-AMR) 2017-2021 showcases the government's dedication to tackling the global issue of antimicrobial resistance within the aquaculture context. Malaysia's policy development emphasizes sustainable growth, environmental stewardship, and compliance with global standards, ensuring the aquaculture industry's development is economically viable and environmentally sound.
CHALLENGES
The adoption of smart aquaculture technology is experiencing rapid growth globally, propelled by a wave of recent innovations. The deployment of these technologies holds the promise to significantly boost productivity and protect the environment, despite the high initial investment costs involved. However, Malaysia has been slow to integrate smart aquaculture technology into its industry. Where implemented, it is mainly within commercial operations that have access to substantial capital investments. This limited uptake highlights several issues and challenges that need to be tackled to fully harness the advantages of smart aquaculture technology within the country.
One of the primary challenges is the limited access to smart aquaculture technology in Malaysia. Much of this technology is imported from abroad, leading to several complications. A significant issue is the compatibility of these technologies with Malaysia's tropical climate. Many smart aquaculture technologies are developed in regions with vastly different climates, such as Europe, where the environmental conditions differ significantly from those in Malaysia. Consequently, these technologies may not function optimally in the Malaysian context, impeding their widespread adoption and effectiveness. For example, temperature control systems designed for colder climates might not be suitable for Malaysia's warmer and more humid conditions, resulting in inefficiencies and potentially increased operational costs.
Moreover, the substantial investment costs linked to smart aquaculture technology pose a significant obstacle for many aquaculture farmers in Malaysia. Most of these farmers operate on a smaller scale and require governmental assistance to afford such technology. The capital-intensive nature of these technologies means that only larger commercial entities can afford to adopt them, thereby exacerbating the gap between small-scale farmers and larger enterprises. This disparity hinders the widespread adoption of smart aquaculture technology and reinforces existing inequalities within the industry.
In addition to financial hurdles, there are also technical and knowledge-related challenges that must be addressed. The adoption of smart aquaculture technology necessitates a certain level of technical proficiency and understanding, which many local farmers might not possess. Without sufficient training and support, these farmers could struggle to effectively utilize the technology, resulting in less-than-optimal results and potential disenchantment with the technology itself. This problem is exacerbated by the fact that much of the available training and support materials are frequently in foreign languages or not customized to meet the specific needs of Malaysian farmers. Urgent steps are required to develop and offer customized training programs that can close this knowledge divide and promote effective adoption.
While the global expansion of smart aquaculture technology offers considerable opportunities for improving productivity and environmental sustainability, Malaysia encounters several hurdles in its adoption. The restricted access to appropriate technology, substantial investment costs, and a shortage of technical know-how are major obstacles that need to be addressed to fully harness the potential of smart aquaculture in the country. Overcoming these challenges will necessitate collaborative efforts from both the government and private sector to provide financial backing, enhance access to technology, and develop customized training programs that cater to the unique requirements of Malaysian aquaculture farmers. The significance of this financial support should not be underestimated, as it is crucial for fostering the sustainable development of Malaysia's aquaculture industry in the age of smart technology.
CONCLUSION
The application of smart technology in Malaysia is still in its infancy stage and requires enhancement. The lack of capital, insufficient financial support for purchasing technology, and a knowledge gap in adopting these technologies are among the issues impeding the integration of smart technology in Malaysia. The Malaysian government must take a more proactive role in promoting smart aquaculture, which includes the use of cutting-edge technologies like the Internet of Things (IoT), Artificial Intelligence (AI), robotics, cloud computing, big data, and machine learning.
At the same time, Malaysia requires clear and comprehensive policies to support the application of smart technologies in the aquaculture industry. Policies that support these technologies can ensure national food security and optimize land use.
Moreover, adopting these technologies can decrease reliance on foreign labor and reduce operational costs. Although the initial investment in these technologies is high, the long-term benefits are significant for all stakeholders, and the costs of technology are expected to decline over time. Neglecting to engage with these advancements early may lead to Malaysia falling behind other nations that have already incorporated various technologies into their aquaculture sectors.
In summary, Malaysia's policy framework for the shrimp industry is thorough, focusing on sustainable development, environmental protection, and compliance with international standards, ensuring that the industry's growth is both economically viable and environmentally responsible.
REFERENCES
Department of Fisheries Malaysia, 2024 https://www.dof.gov.my/sumber/perangkaan-perikanan-i/
Fathi, S., Harun, A. N., Rambat, S., & Tukiran, N. A. (2018). Current Issues in Aquaculture: Lessons from Malaysia. Advanced Science Letters, 24(1), 503–505. https://doi.org/10.1166/asl.2018.12051
Hashim.M, & Kathamuthu.S. (1996). Shrimp farming in Malaysia. Shrimp News International [SHRIMP NEWS INT.], 21(3), 6–8.
Ritchie H. and Roser, (2021). Fishing and overfishing:How are fishing stocks changing across the world? How much is over fish? Published in Fish and Overfishing - Our World in Data (https;//ourworldindata.org
Sampantamit, T., Ho, L., Lachat, C., Sutummawong, N., Sorgeloos, P., & Goethals, P. (2020). Aquaculture production and its environmental sustainability in Thailand: Challenges and potential solutions. In Sustainability (Switzerland) (Vol. 12, Issue 5, pp. 1–17). MDPI. https://doi.org/10.3390/su12052010
Wayne, I. W. & Vun, L. W. (2016). Aquaculture in Malaysia: A Short Review on Current Policy and Legislation. Transactions on Science and Technology, 3(2), 150–154. http://transectscience.org/
Wayne Witus, I., & Wan Vun, L. (2016). Aquaculture in Malaysia: A Short Review on Current Policy and Legislation. In Transactions on Science and Technology (Vol. 3, Issue 2). http://transectscience.org/
Policies on Promoting the Application of Smart Aquaculture in Malaysia
ABSTRACT
Aquaculture is a vital industry that ensures Malaysia's food security. Malaysia produces more than 400,000 tons of aquaculture products yearly, accounting for around 22% of the nation's total fish consumption. Although this industry faces various challenges, the latest technological advancements offer hope for its continued growth. Technologies such as artificial intelligence (AI) in farm operations can directly address some of the challenges faced by the industry. AI, the Internet of Things (IoT), robotics, cloud computing, and 5G networks are among the elements of smart aquaculture. Developed countries like Norway and Japan are leaders in developing these technologies. In general, the application of smart technology in the aquaculture industry is still low and in its nascent stage. Malaysia aims to be included as one of the technology players and, thus, promote these technologies within its aquaculture sector. The Malaysian government has formulated various policies to catalyze rapid adoption by industry players. However, adoption remains limited due to challenges such as the high initial investment costs and the availability of these technologies for practical use in Malaysia. The readiness of farmers to adopt these technologies remains to be fully assessed, posing challenges for policymakers in crafting effective policies to assist Malaysian farmers. Despite the slower progress compared to developed countries that are already advanced in this technology, Malaysia has the right policies in place to further promote the adoption of smart aquaculture.
Keywords: Policy, Aquaculture, Smart technology, Fishery industry
INTRODUCTION
As the world's population continues to grow, the demand for food is increasing at an unprecedented rate, putting pressure on traditional protein sources such as chicken and beef. This surge in demand has also sparked growing interest in alternative protein sources, with fish proving to be a popular option due to its nutritional benefits. However, this increased reliance on fish coincides with the growing threat of declining wild fish populations, raising concerns about the sustainability of depending solely on natural fisheries to meet global protein needs. Many studies have revealed that the world's fish stocks are overexploited or depleted. For instance, global data indicates that captured fisheries' output has decreased from 94.4 million tons in 2000 to 92.18 million tons in 2021 (Ritchie and Roser, 2024).
In response to these challenges, aquaculture has emerged as a vital economic sector that plays a crucial role in ensuring a stable and sufficient food supply for the world's population. Aquaculture, or fish farming, offers a controlled and sustainable method to produce fish and other aquatic species, thereby reducing the pressure on wild fish populations and helping to meet the growing global demand for protein. Aquaculture has been recognized as one of the key alternative sources of fish protein. A global report indicates that aquaculture production has surged from 43.01 million tons in 2000 to 126.64 million tons in 2021 (Ritchie and Roser, 2024).
Reflecting on the global trend, aquaculture serves as a significant source of protein and is a key industry in Malaysia. The country ranks among the world's largest fish consumers, with an average consumption of 57 kg per person annually. Aquaculture not only provides employment opportunities and income but also contributes significantly to the nation's economy, generating RM3.04 billion (approximately US$0.707 billion) each year. Malaysia is positioned 15th globally and 6th in Southeast Asia in terms of aquaculture production, with an annual output exceeding 400,000 tons of fresh aquaculture products.
Malaysia's production of aquaculture products has increased significantly from 167,898 tons in 1960 to 634,875 tons in 2012. However, the trend in aquaculture production has been decreasing since 2012. Statistics from World in Data reveal that production fell from 634,875 tons in 2012 to 506,925 tons in 2015, and further dropped to 427,515 tons in 2017. Aquaculture products comprised only about 23.72% of the total fish landings in 2021, indicating Malaysia's relatively low dependence on aquaculture products. The government is concerned that aquaculture production might continue to decline without direct and indirect interventions.
For any industry to flourish, it requires robust government support. This support can manifest in various forms, including direct assistance and incentives. However, the most crucial aspect is the formulation of government policies that will steer the industry's growth. These policies must be meticulously crafted and supported by comprehensive research to effectively assist the target groups. Malaysia has a track record of developing policies that support and expand various industries. Therefore, the development of well-founded policies is essential to ensure the sustained growth of an industry and to support its intended beneficiaries. This paper aims to explore the Malaysian government's policies that foster the growth of the aquaculture industry, particularly in promoting the adoption of smart aquaculture practices.
AQUACULTURE PRODUCTION IN MALAYSIA
Aquaculture in Malaysia boasts of a rich history dating back to the early 20th century. The introduction of aquaculture by Chinese miners in the 1920s marked the inception of the industry (Hashim & Kathamuthu, 1996). Freshwater fish, such as carp, were cultivated in abandoned tin mining ponds, utilizing the available water resources for their livelihood. As the industry evolved, the Malaysian government actively promoted aquaculture in the 1960s and 1970s to enhance food security and diversify rural incomes (Wayne & Vun, 2016). This era witnessed the adoption of more structured and scientific approaches to aquaculture, including the establishment of research centers and hatcheries. The 1980s and 1990s experienced significant technological advancements and the industry's expansion into marine aquaculture. The introduction of species such as shrimp, grouper, and snapper, along with the development of coastal fish farming, significantly contributed to the industry's growth (Hashim & Kathamuthu, 1996). Malaysia's strategic location with extensive coastal areas and favorable climatic conditions has further facilitated the development of marine aquaculture. In recent years, the Malaysian aquaculture industry has continued to expand, propelled by technological advancements, including integrated Recirculating Aquaculture Systems (RAS).
Aquaculture commodities are currently making remarkable contributions to the fisheries sector, surpassing the previous dominance of traditional marine capture fisheries. The production of aquaculture products increased steadily from the 1960s until 2012, after which it began to decline. In 1960, Malaysia produced only about 7,801 tons of aquaculture products. The industry experienced rapid growth, with production surging to over 634,376.4 tons by 2012 (see Table 1). However, several challenges have emerged within the industry, leading to a significant drop in production such as the emerging of diseases (Fathi et al., 2018) . Table 1 and Figure 1 shows the annual aquaculture production in Malaysia from 2005 to 2023. The data shows a general upward trend in production until 2012, when it peaked at 634,376.4 tons. From 2005 to 2010, production increased steadily, reaching 581,048.4 tons in 2010. However, there was a significant decline between 2011 and 2016, with production falling to 407,387.3 thousand tons in 2016. After that, production fluctuated but remained relatively stable between 2017 and 2021, with figures between 391,465.2 and 427,015.4 tons. In 2022, production recovered significantly, increasing to 573,682.5 tons. This was followed by a slight decline in 2023, with production reaching 506,867.5 tons. Despite fluctuations, the data reflects the resilience of the Malaysian aquaculture sector, with significant recovery in production after periods of decline.
The aquaculture industry in Malaysia is categorized into two main types: freshwater and marine. As of 2023, there were 16,919 freshwater farmers in the country. Freshwater aquaculture farming systems encompass ponds, ex-mining pools, freshwater cages, cement or fiberglass tanks, canvas tanks, and pen culture. Conversely, the number of marine aquaculture farmers was recorded at 21,820. Marine aquaculture systems include brackish water ponds, cages, tanks, and enclosures. Additionally, the line culture system is predominantly utilized for seaweed or algae, as well as for shellfish farming such as mollusks.
The Table 2 provides a detailed overview of aquaculture production in 2023, dividing it into freshwater and brackish water sources in different Malaysian states. Sabah is the largest contributor with a total production of 236,121.1 tons, driven primarily by brackish water aquaculture (234,114.9 tons). Penang and Perak also stand out with 60,562.8 tons and 68,561.6 tons respectively, reflecting a significant contribution from freshwater and brackish water. Kedah's total production reaches 38,828.4 tons, with a significant portion coming from brackish water (30,403.5 tons). States such as Selangor (23,099.1 tonnes), Johor (26,766.7 tonnes) and Pahang (18,728.4 tonnes) also make significant contributions and show a balance between freshwater and brackish water sources. Smaller states such as Melaka, Negeri Sembilan and Terengganu have more modest totals, with Melaka producing 4,348.7 tons and Negeri Sembilan contributing 5,587.4 tons. Labuan and Kuala Lumpur, on the other hand, have the lowest aquaculture production at less than 2 tons combined. Malaysia's total aquaculture production stands at 506,867.5 tons, with brackish water aquaculture being the dominant source at 393,796.9 tons, while freshwater aquaculture accounts for 113,070.5 tons, reflecting the country's heavy reliance on brackish water for the fish farming indicates.
The aquaculture industry in Malaysia features a diverse array of species. Within the freshwater sector, the primary species cultivated are freshwater catfish and channel catfish (locally known as "godmother"), fuelled by robust domestic demand. In the brackish water sector, key species include sea bass, white shrimp, and king prawn, which cater to both export and local markets, underscoring their economic significance and high consumer preference. The emphasis on these species across both sectors underscores their role in fulfilling nutritional and economic demands of the populace, as well as their substantial contribution to Malaysia's standing in global aquaculture.
Most freshwater aquaculture farmers in Malaysia operate on a small to medium scale, typically characterized by family-run or community-based operations. These farmers often employ traditional or low-technology farming methods like freshwater ponds, repurposed mining ponds, and cages. Their production capacity is generally limited, mainly aiming to supply local markets and meet domestic demand for species like freshwater and channel catfish. The smaller scale of these operations is often due to restricted access to capital, land, and advanced technology, necessitating reliance on simpler, less expensive farming practices.
Conversely, the brackish water aquaculture sector comprises several larger, more commercialized entities. These operations are usually well-funded and employ advanced technologies, enabling them to produce species like sea bass, white shrimp, and tiger shrimp at a larger scale. Such companies can serve both domestic and international markets, highlighting their pivotal role within the Malaysian aquaculture sector. The scale of these operations facilitates more efficient production processes, economies of scale, and the capacity for investment in innovations like automated feeding systems, water quality monitoring, and disease control measures, thereby enhancing production levels and market reach.
The aquaculture industry in Malaysia faces at least five significant challenges. Currently, the availability of freshwater areas and land allocated by the state government for aquaculture is constrained by land ownership terms and competition from other economic activities. The availability of suitable water sources critically affects production quality and quantity, making aquaculture farms vulnerable to environmental changes nearby, which could impact the economic viability of the industry. Additionally, disease transmission poses a major threat due to water's role as a disease vector, worsened by Malaysia's tropical climate. Production costs are also rising annually. Environmental pollution from industrial waste and the unpredictable effects of climate change further complicate operations. Perhaps the most pressing issue is the labor shortage; with only about 10% of the workforce engaged in the food production sector, this challenge has contributed to a significant decline in Malaysia's aquaculture output.
APPLICATION OF TECHNOLOGIES IN AQUACULTURE
Traditional aquaculture systems are encumbered by a series of limitations stemming from a cycle of cause and effect. Many aquaculture industries depend heavily on manual labor, which impedes productivity enhancements and underscores the need for data-driven farm management technologies. An alternative to these conventional methods is the development and implementation of advanced technologies. The labor-intensive approach primarily depends on human expertise and incurs significant labour costs. Over time, aquaculture has evolved from traditional labor-intensive methods to mechanized farming, and is progressively moving towards automated systems.
Aquaculture technology is advancing swiftly, propelled by significant breakthroughs in various state-of-the-art technologies. The pressing need for food resources and environmental sustainability has prompted developed nations like Norway in Europe and Japan in Asia to actively lead in the development of these cutting-edge technologies. These countries are committed not only to meeting demand but also to placing a strong emphasis on environmental conservation and sustainability. This commitment is reflected in their strategic initiatives to implement and innovate solutions that harmonize economic development with the protection of natural ecosystems. Through the integration of advanced technologies, these nations strive to forge a path towards a sustainable future where resource use is in concert with the tenets of environmental stewardship and enduring ecological equilibrium.
Central to these innovations is the rapid evolution of artificial intelligence (AI), which is transforming the aquaculture sector by facilitating more efficient, precise, and sustainable practices. Leading the charge, developed countries are actively investing in AI-based technologies, which has catalyzed the rise of numerous startups focused on revolutionizing this domain. Initially, aquaculture technology emphasized the Internet of Things (IoT) for real-time monitoring and control of aquatic environments, but now the industry is seeing a broader integration of AI with other cutting-edge technologies like robotics, cloud computing, 5G, and big data analytics.
AI, in particular, is utilized to optimize various facets of aquaculture, including feeding, health monitoring, environmental management, and yield forecasting. Through automation and the provision of data-driven insights, AI aids in reducing waste, enhancing resource efficiency, and boosting overall productivity. Robotics plays an increasingly vital role as automated systems take on tasks like feeding, cleaning, and monitoring, thereby reducing labor costs and minimizing human impact on sensitive aquatic ecosystems.
The integration of cloud computing and big data further bolsters these advancements by facilitating the collection, storage, and analysis of vast data quantities from IoT sensors and AI systems, which leads to better decision-making and predictive maintenance. Moreover, the adoption of 5G networks allows for quicker, more reliable device communication, enhancing real-time monitoring and control of aquaculture operations. Collectively, these technologies are steering aquaculture towards more sustainable practices, ensuring that the industry can satisfy the escalating global seafood demand while reducing its environmental footprint. The integration of these technologies has the potential to transform aquaculture into a dynamic, progressive, and innovative industry.
However, in Malaysia, the application of technology remains quite moderate. Most farmers employ basic technologies like canvas ponds, cement and brick ponds, and basic water management systems. The adoption of smart technology is relatively low and still in nascent stages. Barriers such as lack of initial capital, the high cost of technology, and insufficient incentives are some of the challenges impeding the technological advancement in this sector. Consequently, there is a pressing need for new directives from the government to make the industry more efficient and productive.
POLICIES ON PROMOTING THE APPLICATION OF TECHNOLOGY
The substantial growth of aquaculture in Malaysia, especially in high-value species like white prawns, tiger prawns, and sea bass, has been propelled by economic demands and supportive government policies. This expansion is pivotal for satisfying both domestic consumption and international market needs, establishing aquaculture as one of Malaysia's key economic sectors. Additionally, it plays an essential role in securing the nation's food supply. However, this growth introduces environmental challenges, including pollution, biodiversity loss, and habitat degradation (Sampantamit et al., 2020).
In general, the advancement of the fishery sub-sector, encompassing both capture fisheries and aquaculture industries, is guided by the National Agricultural and Food Policy (NAP 1.0 and 2.0) and the National Agrifood Policy 2.0 (2021-2030). The National Agrifood Policy seeks to modernize the agri-food sector to ensure future food security. This policy underscores the importance of sustainable agricultural development, including aquaculture, aiming to harmonize economic growth with environmental conservation (Wayne Witus & Wan Vun, 2016). It supports the vision for the nation's agri-food sector to become more sustainable, resilient, and technologically advanced. The goal is to stimulate economic growth, enhance well-being, and prioritize the nation's food security and nutrition. To achieve this modernization, the government encourages the integration of technology throughout the supply chain, from production through processing to the marketing of products.
The National Agricultural and Food Policy for 2021-2030 (DAN 2.0) outlines initiatives for modernization and innovation in agriculture, with aquaculture identified as a crucial component in the transformation of the agricultural and food sector. DAN 2.0 describes intelligent agriculture or aquaculture as encompassing the wide-ranging application and integration of eco-friendly, high-tech solutions in farming practices to enhance both the quality and quantity of outputs. Within the framework of DAN 2.0, the National Food Security Policy Action Plan (2021-2025) provides Malaysia's strategic approach to bolstering food security, including specific directives to foster smart aquaculture. A central policy focus is on encouraging technology adoption throughout the food system, which includes the integration of advanced aquaculture technologies.
The policy's objective to modernize the aquaculture sector is clearly reflected in initiatives such as the super-intensive aquaculture program, which introduces sophisticated farming techniques to boost productivity. It also emphasizes the significance of mechanization and automation to improve the efficiency of food production systems, aquaculture included. The strategic aim is to secure a stable and sustainable food supply by incorporating modern technologies, like those from the Fourth Industrial Revolution (IR 4.0), into the aquaculture industry. The government intends to offer financial assistance and develop infrastructure to ease the adoption of these technologies, tackling issues like high initial costs and adapting technology to local conditions.
In this context, the focus is on fostering an environment conducive to modernization and linking target groups with aquaculture technology providers and smart agriculture initiatives driven by entrepreneurial efforts. The government collaborates closely with the private sector through various agencies to advance smart technologies. Given the current application of smart technology in both agriculture and aquaculture, it's essential to have effective policies that encourage its use in this sector. Such policies can offer the regulatory framework needed for the development and adoption of smart technologies, ensuring their broad application and the industry's ongoing expansion.
Legislation such as the Fisheries Act 1985 and the Environmental Quality Act 1974 tackle environmental issues related to aquaculture. These laws grant authorities the power to regulate waste discharge, safeguard natural resources, and promote sustainable practices within the industry. The requirement for Environmental Impact Assessments (EIA) for large-scale aquaculture ventures further highlights the commitment to environmental conservation. However, there are still gaps to be addressed, especially for smaller-scale operations that might not undergo rigorous environmental review.
Malaysia's aquaculture industry operates within a policy environment shaped by a series of agricultural and environmental policies rather than a specific aquaculture policy. The sector falls primarily under the umbrella of national agricultural policies, with particular acts and regulations focusing on environmental concerns and sustainable practices. The evolution from NAP1 through NAP3 of the National Agriculture Policies reflects Malaysia's shifting approach towards agricultural development, including aquaculture.
These policies have increasingly integrated elements of sustainability, food security, and biosecurity, adapting to both domestic needs and global market requirements. More recent frameworks like the National Agri-food Policy (2021-2030) and the National Aquaculture Residue Monitoring Plan (ARMP) stress the importance of food safety and the prudent use of veterinary drugs in aquaculture. These align with international standards, aiming to ensure that Malaysian aquaculture products are safe for both local consumption and export.
The Aquaculture Action Plan 2020-2030 and the National Fish Health Strategy (2018-2022) further stress the need for a unified strategy in managing fish health, biosecurity, and environmental sustainability in the industry. Additionally, the Malaysia Action Plan on Antimicrobial Resistance (MyAP-AMR) 2017-2021 showcases the government's dedication to tackling the global issue of antimicrobial resistance within the aquaculture context. Malaysia's policy development emphasizes sustainable growth, environmental stewardship, and compliance with global standards, ensuring the aquaculture industry's development is economically viable and environmentally sound.
CHALLENGES
The adoption of smart aquaculture technology is experiencing rapid growth globally, propelled by a wave of recent innovations. The deployment of these technologies holds the promise to significantly boost productivity and protect the environment, despite the high initial investment costs involved. However, Malaysia has been slow to integrate smart aquaculture technology into its industry. Where implemented, it is mainly within commercial operations that have access to substantial capital investments. This limited uptake highlights several issues and challenges that need to be tackled to fully harness the advantages of smart aquaculture technology within the country.
One of the primary challenges is the limited access to smart aquaculture technology in Malaysia. Much of this technology is imported from abroad, leading to several complications. A significant issue is the compatibility of these technologies with Malaysia's tropical climate. Many smart aquaculture technologies are developed in regions with vastly different climates, such as Europe, where the environmental conditions differ significantly from those in Malaysia. Consequently, these technologies may not function optimally in the Malaysian context, impeding their widespread adoption and effectiveness. For example, temperature control systems designed for colder climates might not be suitable for Malaysia's warmer and more humid conditions, resulting in inefficiencies and potentially increased operational costs.
Moreover, the substantial investment costs linked to smart aquaculture technology pose a significant obstacle for many aquaculture farmers in Malaysia. Most of these farmers operate on a smaller scale and require governmental assistance to afford such technology. The capital-intensive nature of these technologies means that only larger commercial entities can afford to adopt them, thereby exacerbating the gap between small-scale farmers and larger enterprises. This disparity hinders the widespread adoption of smart aquaculture technology and reinforces existing inequalities within the industry.
In addition to financial hurdles, there are also technical and knowledge-related challenges that must be addressed. The adoption of smart aquaculture technology necessitates a certain level of technical proficiency and understanding, which many local farmers might not possess. Without sufficient training and support, these farmers could struggle to effectively utilize the technology, resulting in less-than-optimal results and potential disenchantment with the technology itself. This problem is exacerbated by the fact that much of the available training and support materials are frequently in foreign languages or not customized to meet the specific needs of Malaysian farmers. Urgent steps are required to develop and offer customized training programs that can close this knowledge divide and promote effective adoption.
While the global expansion of smart aquaculture technology offers considerable opportunities for improving productivity and environmental sustainability, Malaysia encounters several hurdles in its adoption. The restricted access to appropriate technology, substantial investment costs, and a shortage of technical know-how are major obstacles that need to be addressed to fully harness the potential of smart aquaculture in the country. Overcoming these challenges will necessitate collaborative efforts from both the government and private sector to provide financial backing, enhance access to technology, and develop customized training programs that cater to the unique requirements of Malaysian aquaculture farmers. The significance of this financial support should not be underestimated, as it is crucial for fostering the sustainable development of Malaysia's aquaculture industry in the age of smart technology.
CONCLUSION
The application of smart technology in Malaysia is still in its infancy stage and requires enhancement. The lack of capital, insufficient financial support for purchasing technology, and a knowledge gap in adopting these technologies are among the issues impeding the integration of smart technology in Malaysia. The Malaysian government must take a more proactive role in promoting smart aquaculture, which includes the use of cutting-edge technologies like the Internet of Things (IoT), Artificial Intelligence (AI), robotics, cloud computing, big data, and machine learning.
At the same time, Malaysia requires clear and comprehensive policies to support the application of smart technologies in the aquaculture industry. Policies that support these technologies can ensure national food security and optimize land use.
Moreover, adopting these technologies can decrease reliance on foreign labor and reduce operational costs. Although the initial investment in these technologies is high, the long-term benefits are significant for all stakeholders, and the costs of technology are expected to decline over time. Neglecting to engage with these advancements early may lead to Malaysia falling behind other nations that have already incorporated various technologies into their aquaculture sectors.
In summary, Malaysia's policy framework for the shrimp industry is thorough, focusing on sustainable development, environmental protection, and compliance with international standards, ensuring that the industry's growth is both economically viable and environmentally responsible.
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