Subsidies in the Fisheries Sector of Malaysia: Impact on Resource Sustainability

Subsidies are a form of support provided to consumers and producers by government to enhance the welfare.  Fishers in Malaysia receive various type of subsidies. Fisheries subsidies however are a challenge because it can work against fishers’ welfare if the fisheries subsidies lead to over fishing and resource depletion.  In this paper, we explore the impacts of fisheries subsidies on small-scale fishers in Malaysia and suggest ways to improve the subsidies scheme so that the twin roles of improving fishers’ welfare and fisheries sustainability are achieved. Data on fisheries subsidies and fisheries production in Peninsular Malaysia is used in this study