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May 2, 2025
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Fish, Farms and Frontiers: What Malaysia’s Aquaculture Sector Can Learn from ASEAN Best Practices

Author
Nik Syafiah Anis Nik Sharifulden
Research Associate
Nik Syafiah Anis Nik Sharifulden
Research Associate
Co - Author
Balqis Athirah Azhar
Balqis Athirah Azhar
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Key Takeaway
Data Overview
Aquaculture plays a crucial role in supporting food security and economic development across Southeast Asia. In Malaysia, the sector shows significant promise, fuelled by strong consumer demand, relatively high purchasing power and growing investments from both public and private sectors. This article draws on best practices from ASEAN neighbours—such as Vietnam’s environmentally sustainable methods, Singapore’s cutting-edge technological advancements, and Indonesia’s innovative public-private partnerships—to explore how Malaysia can strengthen its aquaculture sector through informed, practical strategies.
fish-farms-and-frontiers-what-malaysia-s-aquaculture-sector-can-learn-from-asean-best-practices
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Introduction

Aquaculture is more than just fish farming—it is a lifeline for millions across Southeast Asia. With abundant coastal and inland water resources, ASEAN countries have developed aquaculture not only as a key source of food but also as an important contributor to rural development, poverty reduction and trade. In addition to its economic role, aquaculture supports food and nutrition security in the region as fish remains one of the main sources of animal protein, with average per capita consumption reaching 20.7 kg per year in 2022.

In this context, it is timely for Malaysia to consider how it can further strengthen its aquaculture sector. By examining how other ASEAN countries have expanded production, improved sustainability and supported smallholders, Malaysia can draw practical lessons to inform its own strategies. This article provides a brief comparison of aquaculture development across ASEAN and highlights selected best practices that may be relevant to Malaysia’s efforts.

ASEAN Aquaculture Landscape: Production Trends, Main Species and Key Players

The ASEAN region plays a vital role in global aquaculture, accounting for approximately 19% of total global production, or around 26 million tonnes. Between 1980 and 2023, aquaculture output in the region grew at an average annual rate of 6.7%, outpacing the global growth rate of 5.6%. This expansion has been supported by improvements in farming techniques, the expansion of aquaculture areas, increased investment, and effective government policies.

Figure 1 illustrates the growth in aquaculture production across ASEAN countries from 1980 to 2023. Indonesia emerges as the leading producer, contributing large volumes of seaweed, tilapia, catfish and shrimp, supported by a mix of large-scale private enterprises (e.g. integrated shrimp farms) and smallholder operations (e.g. freshwater fish production). Vietnam follows closely, with a strong focus on pangasius farming and shrimp exports. The country employs a range of innovative practices including intensive aquaculture systems and integrated approaches such as rice-fish and rice-prawn polyculture, as well as environmentally friendly mangrove-aquaculture systems.

The Philippines is another key player, particularly known for its production of milkfish. Originally dominated by smallholders, the sector has seen increasing commercialisation through the adoption of semi-intensive and intensive systems, supported by public research and private investment. Meanwhile, Thailand’s aquaculture sector is heavily oriented toward shrimp production, driven by strong private sector participation, notably from major conglomerates such as the Charoen Pokphand Group.

Malaysia and Singapore contribute smaller overall volumes but focus on high-value species such as shrimp and seabass. In Malaysia, aquaculture is supported by both public initiatives—such as Aquaculture Industrial Zones—and private sector investment, alongside ongoing smallholder participation. Singapore, constrained by limited land, relies heavily on high-tech and intensive farming systems. Myanmar, Cambodia, and Lao PDR show emerging potential in freshwater aquaculture, with growth primarily led by smallholder producers.

Best Practices in Aquaculture from Selected ASEAN Countries

With growing emphasis on sustainability and self-sufficiency, Malaysia must renew its focus on the fisheries sector – both capture fisheries and aquaculture, as a pillar of national food security and economic growth. Quoting Malaysia’s Prime Minister, Datuk Seri Anwar Ibrahim, he states that “the aquaculture industry has the potential to generate lucrative returns for operators while also helping to ensure the country’s food security.”

Malaysia leads ASEAN in seafood consumption, with an average of 51.03 kg per capita, far ahead of aquaculture powerhouses such as Indonesia (40.76 kg), Vietnam (40.33 kg) and the Philippines (26.56 kg). This high level of consumption, when viewed alongside Malaysia’s relatively higher Gross Domestic Product (GDP) per capita (USD11,748.09) as compared to other ASEAN countries, suggests a strong domestic market with the purchasing and consumer appetite to support a thriving aquaculture industry.

Additionally, the aquaculture industry in Malaysia continues to grow, contributing 30% to total fisheries production in 2022, with seaweed farming standing out as an exemplary success story in the country’s blue economy. As such, the aquaculture industry in Malaysia is now driving the expansion of Malaysia’s fisheries sector, as the wild fisheries segment continues to face pervasive challenges such as overfishing, habitat degradation and governance issues.

Backed by rich coastal resources and maritime heritage, Malaysia is also well-positioned to further expand its aquaculture industry. High seafood consumption indicates market readiness for premium, traceable products, while its economic capacity allows for greater investment in sustainable, high-tech aquaculture. The current moment presents an opportunity for Malaysia to scale up aquaculture and address the gaps that still hold the sector back. By 2040, rapid urbanisation is predicted to reach 85%, insinuating that consumer demands will be reshaped to seek more diversified fish and seafood products. This highlights a space for Malaysia to fill with developing its aquaculture industry.

This aligns with Malaysia’s goal of boosting its aquaculture production up to 40% of its total fisheries sector by the year 2030 and gives Malaysia the headway it needs to realise its potential as a key player in the global food industry. To do so, it would be a missed opportunity not to take inspiration from other ASEAN countries that play a strong hand in their own aquaculture industries.

Conclusion

As Malaysia seeks to strengthen its aquaculture sector, there is value in looking to neighbouring ASEAN countries for inspiration. Indonesia, for instance, offers lessons in inclusive business models and efforts toward feed self-sufficiency. Vietnam demonstrates how integrated farming systems can support environmental sustainability, while innovations from the Philippines—such as modular pond systems—highlight ways to improve yields and build resilience. Even in space-constrained Singapore, technology is opening up new possibilities for aquaculture.

Malaysia already has several advantages: strong domestic demand for seafood, relatively high purchasing power and an aquaculture industry with growing public and private sector involvement. However, slower growth rates and ongoing production challenges point to the need for more targeted strategies. Learning from regional experiences could help inform efforts to empower smallholders, support sustainable intensification and strengthen the local production of key inputs.

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