Fintech Adoption in Malaysia's Aquafarming Industry: Challenges, Strategic Pathways, and Future Opportunities for Sustainable Development (Advanced International Journal of Business Entrepreneurship and SMEs)

Summary

• Aquafarming contributes approximately 30% to total fish production in Malaysia.p.2
• Seaweed farming makes up 54% and brackish water fish farming represents 26% of aquaculture production, followed by freshwater fish farming at 20%.p.2
• The ornamental fish sub-sector produces around 234 million ornamental fish and 24 million tonnes of aquatic plants every year.p.2
• Food fish production accounts for almost 97% of total industry value, compared to 3% for non-food species like ornamental fish.p.2
• Increasing urbanization in Malaysia is projected to reach 85% of the population by 2040, putting additional strain on current fish supply chains.p.3

Key insights

1. Aquafarming accounts for approximately 30% of total fish production in Malaysia.p.2
2. Seaweed farming represents the largest single share of Malaysian aquaculture production at 54%.p.2
3. Food fish production generates almost 97% of the financial value of Malaysia's aquafarming sector.p.2
4. Malaysia's urbanization rate is expected to reach 85% by 2040, driving changes in consumer aquatic product preferences.p.3
5. Smallholder aquafarmers face financing barriers due to lack of formal credit histories and reliance on uncollateralized leased land.p.4
6. Malaysia revised its Good Aquaculture Practices (GAqP) standard in 2017 to match ASEAN guidelines.p.6
7. Blockchain-enabled smart contracts allow automated seafood transactions and reduce supply chain middleman costs.p.7
8. Decentralized finance platforms offer alternative working capital mechanisms for underserved rural aquaculture operators.p.9