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AQUACULTURE INCENTIVES,

POLICIES & REGULATIONS


IN MALAYSIA
Assoc. Prof. Dr. Abol-Munafi
School of Fisheries and Aquaculture Sciences
Universiti Malaysia Terengganu

Introduction
Aquaculture

has
developed
rapidly
and
becoming an important
way of increasing local
production
and
export
revenues. It is also a
source
of
food,
employment, and income
for
many
developing
countries
including
Malaysia.

Introduction
Aquaculture plans and policies are developed

comprehensively to the improvement of


aquaculture sectors :

Production
Marketing
Environment
Socio - Economy

Basic
Legislation
Most

of plans and polices in Malaysia are


developed and regulated in states and national
level.
The aquaculture sector in Malaysia operates
under the watch of the Department of Fisheries
under the Ministry of Agriculture and Agro-based
Industry (MOA).
MOA is responsible in developing and expanding
marine and inland farming, encourage inland
aquaculture and to offer sufficient fish-breeding
facilities and training centres.

Basic
Legislation
MOA- responsible for plan setup and enforcing
it through policies and programs.
Plans & policies constructed to fit the
current conditions of the nations economy
There are two plans and policies that
have been proposed to ensure the
competitiveness of agriculture sector
in contributing to Malaysia s
economic growth

National Agricultural Policy


(NAP)

Malaysian Plan
(MP)

Malaysia estimated that by and beyond 2010, about 662,000 metric


ton of aquaculture production is to be achieved.

1 st National Agriculture Policy (1984-1991)


Focus on expansionary
policy on export crop i.e.
oil palm & cocoa

1st NAP
Abundant land &
adequate manpower

Government invested heavily


on
infrastructure
institutional building
new land developments for
oil palm & cocoa
in-situ development to
resolve uneconomic farm
size & low productivity
among small holders

2 nd National Agriculture Policy (19921998)


Greater focus on issues of
productivity, efficiency &
competitiveness

2nd NAP
Addressing the linkages
with other economy
sector

Shifted from new area


development to in-situ
development

3 rd National Agriculture Policy (1998-2010


Further development of agrofood sub-sector as well as
agro-based industries

3rd NAP

1997 Asian Financial Crisis :


Need to find alternative to
manufacturing sector
Agro-food sub-sector to
be engine of growth

9th Malaysian
Plan
To Increased
Value Added

Increased
Production

9 th MP
(20062010)
TARGETS
Increase SelfSufficiency
Level

To Contain
Import Bill

9th Malaysian
Plan
Increasing agricultural
production including
new sources of growth
with greater private
sector participation

Improving the
service delivery
system

Enhancing incomes
of smallholders,
farmers and
fishermen

POLICY
THRUST

Expanding agrobased processing


activities & product
diversification

Strengthening
marketing and global
networking

Basic
Legislation
In Malaysia, fisheries activities are

governed by Fisheries Act 317 (1985).


The regulation indicates that inland
fisheries and aquaculture matters are
regulated by the state authorities. On
the other hand, marine fisheries and
aquaculture are under the federal
government provision.

defines aquaculture as the propagation

of fish seed or the raising of fish through


husbandry during the whole or part of its
life cycle.

Legislations related in
aquaculture industries
Fisheries Act No.317
(1985).
Food Act (1983, as
Fishermen's Associations Act
amended).
(1971).
Food Regulations (1985, as
Environmental Quality Act No.127
amended).
(1974)
Waters Act No.418 (1920, as
Malaysia National Biodiversity Policy
amended).
(1998).
Perak State Fisheries (Riverine) Rules
Kedah State Fisheries (Riverine) Rules
(1992).
(1990).
Fisheries (Marine Culture Systems) Regulations
(1990).
Fisheries (Cockles Conservation and Culture)
Regulations (2002).
Fisheries (Prohibition of Import, etc., of Fish) Regulations
(1990).
ASEAN Ministerial Understanding on Fisheries
Cooperation (1983).
Environmental Quality (Sewage and Industrial Effluents) Regulations (1979,
as amended).
Agreement on the Network of Aquaculture Centers in Asia and the Pacific
(NACA) (1988)
Environmental Quality (Prescribed Activities) (Environmental Impact Assessment)
Order (1987).

Basic
Legislation

MOA further expand aquaculture industry in

Malaysia introduce Aquaculture Industry Zone (ZIA)


Aquaculture
Industry Zone
(ZIA)
Segregating suitable

zoning and coastal areas


Boost fish, prawn and shellfish

production- drafted under the Third


National Agriculture Policy (NAP3)

Increase income of aqua


culturist to a minimum
RM3000 monthly

Produce only high quality


fish product for the
market

1. AQUACULTURE FARM
CERTIFICATION SCHEME
Having realized this potential, Malaysia has

embarked on aquaculture farm certification


scheme beginning 2005.
SPLAM (Skim Persijilan Ladang Akuakultur
Malaysia) was introduced comprising Quality
Assurance Programme (QAP) such as:
Good

aquaculture practices (GAqP), HACCP


(Hazard Analysis Critical Control Point) at
source, food safety from farm to table,
sustainable practices and environmentally
friendly practices.

1. AQUACULTURE FARM
CERTIFICATION SCHEME
SPLAM- Standards by FAO

Code of Practice (COP)


Guidelines to advocate sustainable and
best aquaculture practices in compliance
with QAP.

Farms, which fully comply with


the terms of the QAP, will be
accredited with SPLAM logo.

Valid for two (2) years, after which, surveillance


audit will be conducted to ensure continuous
compliance with best aquaculture practices.

1. AQUACULTURE FARM
CERTIFICATION SCHEME
With the globalization in world trade, sanitary

and food safety standards become the


determining factor to ensure market access.
A standard is a requirement that is determined
by a consensus of opinion of users.
Sustainability standards now is not only
confine to food safety, but also environmental
and social standards;
Shows the accepted and (theoretically) the best

criteria for
procedure.

product,

process,

test,

or

1. AQUACULTURE FARM
CERTIFICATION SCHEME
As an assurance to consumers and, CERTIFICATION is

now being used to certify that produce from such


farm is safe for consumption and is of very high
quality.
Only products that are not only safe for consumption,
but are produced in a sustainable manner, have a
good leverage for market access as well as the
competitive advantage in international market.

2. MyGAP??
Malaysian Good Agricultural Practice
Rebranding of Skim Amalan Ladang Baik

Malaysia (SALM), Skim Amalan Ladang


Ternakan (SALT) & Skim Persijilan Ladang
Akuakultur Malaysia (SPLAM)
Launched 28 August 2013.

A new and comprehensive certification

scheme for crop, livestock and fisheries


sector.
Based on Malaysian Standards (MS) for
Fisheries:
MS 1998: 2007 Good Aquaculture Practice

(GAqP)-Aquaculture Farm General Guidelines.


MS 2467: 2012 Code of Practice for Seaweed
Cultivation.

3. Good Aquaculture
Practices (GAqP)
5 main standard for Good Aquaculture

Practices (GAqP):
i. Food Safety
ii. Fish Health Needs
iii. Occupational Safety and Health
iv. Environmental sustainability
v. Animal Welfare

Those 5 main standard were translated into

18 aspects necessary for acquiring this


i. Site
ii. Waste Water
iii. Farm
certificate:
selection
Control
Development

iv. Clean contact surfaces and


v. Pond &Cages
Conditions
Design
vi.
vii. Water
viii. Farm Hygiene
Health
Management
Practices
ix. Pond
x. Workers- Social and
fertilization
Welfare xii. Harvesting and Handling of Farm
xi. Predators and Pests
Control
Produce
xiii. Supply of Raw Materials (Additives,
Seeds)
xiv. Labeling, Storage and UseHazardous
compounds
xv. Livestock Health
xvi. Farm Record
Management
xvii. Farm Biosecurity
xviii.Keeping
control

Halal

4. Hazard Analyses Critical Control


Point (HACCP)
Science based
Step wise process:
Identifies hazards
Installs preventative measures to
eliminate or reduce hazards in foods
Proactive rather than reactive
Risk based

History of HACCP

Since then, HACCP principles have been

defined and endorsed in international food


standards (Codex Alimentarius
Commission), and in European and UK
legislation.
Malaysia National HACCP Certification
Scheme
19 April 2001

HACCP - Answers 3 questions


H azard
A nalysi
s
C
ritical
C
P ontrol
oint

WHAT hazards can


enter the product?
Where do these
hazards occur?
How can we
control or
eliminate these
hazards?

Stake holders involved in HACCP

Farm-To-Table

Assurance throughout the food


chain

Define the processing


steps

Receiving

Storage
and
Holding

Preparatio
n

Packaging
and
Labelling

Storage

Distributio
n

The objectives of application of the HACCP system

Prevention of foodborne illness

Reduction of
costs
of food analysis

More efficient
QA
system

Protection of reputation

Reduction of
losses due to
product recall

7 principles of HACCP
implementation

Hazard analysis

Determine the Critical Control Points (CCP)


Establish critical limits
Critical Control Point (CCP) monitoring
Corrective actions
Establish verification procedures
Record keeping procedures

5. 50:50 Aquaculture
Production Policy
1, 764, 000 m.t
705,000 m.t 580,000 m.t 480, 000 m.t
(40%)
(33%)
(27%)
Increase
Productivity Of
Existing
Production
System

Focus on NKEA
main Project
(EPP4 & EPP6)

Aquaculture
reconstruction

DEVELOPMENT STRATEGIES

5. 50:50 Aquaculture
Production Policy
Government Commitments
Budget 2015
RM246.5 m was allocated for aquaculture

development
Intensify NKEA projects, aquaculture R&D
programmes and new projects to help
target group.
Long term plan for Malaysia Plan 11
(2016-2020)
Input and feedback from the industry
towards
Departments programes and
plans.

5. 50:50 Aquaculture
Production Policy
KEY PERFORMANCE INDICATOR (KPI)
Increase of aquaculture KPT from 12.4% to
24.6%,
Entrepreneurs net income < RM4,000/month,
Increase freshwater fish usage per capita from
5kg to 15kg,
Increase fish and aquaculture fish product
export,
100% of commercial farm receive MyGAP
certificate,
Production of quality breeds of Tilapia, Catfish,
Patin, Lobster, Tiger Prawn, Seabass and
Grouper, &

AQUACULTURE PRODUCTION
PROMOTION INCENTIVES
Objectives
Reduce the burden of farmers/aquaculture producers

following the increase in cost of production


Promote the increase of food production
Promote the culture of keeping farm records

Eligibility Conditions
Aquaculture operators
Malaysian citizen
Malaysian company (at least 51% equity owned by
Malaysian citizens)
Have legal ownership of the land or water body where
the project is sited
Registered with the Department of Fisheries Malaysia
Have records of the culture project that is supervised
by the Department of Fisheries Malaysia
Have a Savings Account at Agro Bank Malaysia

Types of Aquaculture
Projects
Freshwater fish
culture
Marine fish
culture
Freshwater
prawn culture
Marine prawn
culture
Shellfish culture

Farm Record-keeping Books


Supplied by the Department of Fisheries Malaysia to
all registered culturists/farmers
The farmers must record all project information and
culture activities
The information will be monitored by the staff of the
Department of Fisheries Malaysia
Payment of incentives will be based on records of
harvested and marketed produce
Can be obtained at every State/District Level
Fisheries Office in your vicinity

Hatchery Upgrading Programme


I. Objectives
Increase aquaculture production, especially food fish to meet the protein requirements of the country
Encourage the increase in production of seed stock to support the country's aquaculture industry
Assist in the reduction of the cost of production incurred by aquaculture farmers
Encourage aquaculture farmers to comply with biosecurity requirements to ensure food safety of
aquaculture produce
II. Eligibility Conditions
Malaysian citizens
Above the age of 18 years
Individual operators/group operators/interested companies
Malaysian registered company with a majority of shares owned by Malaysian citizens
Have working experience in the field of aquaculture
Have a valid/legal status for the land/project site
Registered with the Department of Fisheries Malaysia
Open to existing hatchery operators
Required to upgrade facilities and practise GHP (Good Hygiene Practices) and Biosecurity
Provide and maintain hatchery records

III. Type of Assistance


Formulated feed
Broodstock
Hatchery facilities
Infrastructure

THANK YOU

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