Poverty and Vulnerability of Fishermen in the East Coast of Peninsular Malaysia and

Potential for a Community Social Enterprise

Mohd Shukri Hajinoor

COMMACT Malaysia and

Faculty of Economics and Management Universiti Kebangsaan Malaysia

March 4, 2012

Presentation at the COMMACT International Conference on “New directions and connections for the soladirity economy and people-

centred development, 1-4 March 2012, Kochi, Kerala, India

Outline of presentation

1. Concept of poverty & vulnerability

2. Why fishermen?

3. What type of fishermen are vulnerable?

4. What kind of vulnerabilities?

5. Sources of vulnerabilities

6. Reducing, mitigating, coping

7. Potential for a community social enterprise

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Concept of poverty & vulnerability

Poverty – a static concept (a snapshot in time), below PL

Insecurity & vulnerability are dynamic; they describe the response to changes over time

Insecurity – exposure to risk

Vulnerability – the resulting possibility of a decline in wellbeing

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Vulnerability is a function of

1) household’s asset endowment

2) insurance mechanisms (informal and/or formal)

3) characteristics (severity, frequency) of the shock

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Why fishermen?

Among the poorest in Malaysia

Switching between chicken and fish

In 1970s, fish was the people’s food, chicken was a luxury

Since early 1990s, fish has become food of the rich, in turn, chicken is the people’s food

It means, fish is relatively more expensive than chicken

Yet most fishermen remains poor

No NGO has dealt specifically with poor fishermen

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Which fishermen are vulnerable?

“Vulnerability” depends on whom we ask:

• Small (coastal) fishermen

• Medium size

• Large scale (deep sea) enterprise

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Types of vulnerabilities

Depends on where we ask (along the east coast)

• In Kelantan state (bordering with Thailand): encroachment by Thai fishermen

• In Terengganu, Pahang, eastern Johor: Marine Park Act prohibiting fishing near islands (where most fish are)

But what is common among them:

• Vulnerabilities caused by TRAWLERS

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Picture of a fish trawler

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Small or coastal fishermen are the most vulnerable

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Types of vulnerabilities

• Income

• Health

• Erosion due to strong waves (January 2012)

• Others

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Process of vulnerability of fishermen

Fishermen are socio-economically vulnerable due to external as well as internal factors to them

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Illegal fishing practices

Global / Regional Forces

Breakdowns in social capital

Vulnerable Fishermen

Vagaries of climate &

nature

Institutional factors

Lack of assets and other skills

Main sources of vulnerability

• Encroachment by Malaysian licensed “chartered” foreign-owned trawlers operated by foreign fishermen (ALIBABA)

• Encroachment by foreign-owned large boat (C & C2)

• For small (coastal) fishermen, marginalization (of obtaining FISHERMAN CARD) due to politics

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A Thai boat (with Thai letters) using Malaysian licensed C2 Boat, flying Kelantan flag (with dock painted in red – required for Kelantan boats) employing Thai fishermen landed at a non-government jetty in Tok Bali, Kelantan

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Even the buyer from one of the seven C or C2 boats landed at a non-government

owned jetty in Tok Bali, Kelantan, is a Thai

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Lack of activities at federal government built jetty in Tok Bali, Kelantan

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Bustling of activities at a private-owned jetty in Tok Bali, Kelantan

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Mitigation and the roles of Fishermen’s Associations (FA)

• Fishermen associated with FAs only to obtain papers (documents) to apply for KAD E-NELAYAN (Fisherman’s Card) from the Fisheries Development Authority (LKIM) (Ministry of Agriculture)

• A Fisherman’s Card enables fishermen to obtain subsidies:

1) RM200/month Living Allowance

2) Diesel at RM1.80/litre (instead of RM2.10/litre

3) RM0.10/kilogramme Catch Allowance

• Mitigating role by FAs has been limited

• Although there is the umbrella NATIONAL FA, not all AREA BRANCH FA are up and running to the fullest potential

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AREA BRANCH FA attached to the LKIM jetty in Dungun, Terengganu

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AREA BRANCH FA in Bachok, Kelantan

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Not all of fishermen’s association programmes are up and running

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Idled Fishermen Group Economic Activity

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Potential for Community Social Enterprise

• Existing Fishermen’s Cooperative (belonging to AREA BRANCH FA) has been limited in scope

• Private dealers buy catches directly from large C2 boats

• AREA BRANCH FA operates small jetties only collecting landing fees (bringing in only small income)

Potential for AREA BRANCH FA and its LOCAL FISHERMEN COOP to venture into enterprises bringing back benefits to its members

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Rates for landing charges at a small jetty run by the Bachok AREA BRANCH FA

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No activity at the Bachok AREA BRANCH FA Jetty except for fishermen

doing maintenance of their nets

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Fishermen’s shop next to the LKIM jetty in Mersing, Johor; but it is privately run on a small scale (it does

not belong to Fishermen’s Cooperative)

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A tuition centre operated by an Mersing Area Branch FA; but the facility seems abandoned. In Malaysia,

exam-oriented private tuition centres are a big business

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Fishermen Coop (FC) as a community social enterprise

• Re-examine business model of FC shops

• FC must compete with fish dealers by purchasing catches directly at all types of jetties (government and privately-run) to secure competitively priced supply

• Remodel and rebrand FC shops as the centre for merchant as well as retail fish shop

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Overall proposals

1. Re-examine current licensing & subsidy system affecting particularly particularly small (coastal) and medium

2. Re-examine current system of monitoring of subsidies

3. Re-examine current marine surveillance enforcement

4. Social enterprise of FISHERMEN COOP that truly benefit its members – it GOES BEYOND COOPERATIVES

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“Wealth granted by God to His Prophet from the people of many places are for God, for His Prophet and his family, for orphans, for the poor and for those on journey so that the wealth is not only circulating among the riches among you” (Al-Hasyr 59:7)

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TERIMA KASIH

THANK YOU

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