Marine Protected Areas (MPAs) are useful tool for conserving biodiversity and managing fisheries. The government of Malaysia has established several Marine Protected Areas (MPAs) to enable overexploited marine resources to recover and to conserve coral reef ecosystems.The paper investigates the effect of governance approach on the effective management of two MPAs, Perhentian and Kapas marine parks in Terengganu State of Peninsular Malaysia. The data for this study was obtained from face-to-face interviews with local people from two MPAs using a structured questionnaire. The results of the analysis show that local participation in MPA management and fisheries regulations are significant factors for the effective MPA management in the study areas. The regression results show that users' participation has contributed significantly to the MPA governance, which indicate that local peoples' participation play an important role for effective management of MPAs in Malaysia. The MPA management activities should be coordinated with other relevant agencies and local users to achieve successful management of MPAs in Malaysia. There is a need to give priority to encourage local fishers' participation in decision making for MPAs management in the future marine resource conservation policy in Malaysia.

Cage culture plays an important role in achieving higher output and generating more export earnings in Malaysia. However, the cost of fingerlings, feed and labour have increased substantially for cage culture in the coastal areas in Peninsular Malaysia. This paper uses farm level data gathered from Manjung, Perak and Kota Tinggi, Johor to investigate the technical efficiency of brackish water fish cage culture using the stochastic frontier approach. The technical efficiency was estimated and specifically the factors affecting technical inefficiencies of fish cage culture system in Malaysia was investigated. On average, 37 percent of the sampled fish cage farms are technically efficient. The results suggest very high degrees of technical inefficiency exist among the cage culturists. This implies that great potential exists to increase fish production through improved efficiency in cage culture management in Peninsular Malaysia. The results indicate that farmers obtained grouper fingerlings from other neighboring countries due to scarcity of fingerlings from wild sources. The cost of feeding for grouper (Epinephelus fuscoguttatus) requires relatively higher costs compared to seabass (Lates calcarifer) production in cage farms in the study areas. Initiatives to undertake extension programmes at the farm level are needed to help cage culturists in utilizing their resources more efficiently in order to substantially enhance their fish production.

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The Perhentian Island located in the East coast of Peninsular Malaysia is well-known for its rich coral reef ecosystems. Marine resources of Malaysia have been overexploited due to overfishing and tourism activities. As such no-take marine protected area (MPAs) were established in Malaysia, including Perhentian Island Marine Park to enable overexploited marine resources to recover and to conserve coral reef ecosystems. This paper examines the current level of activities causing damage to coral reef habitats in the Perhentian MPA. This study used paired comparison method to elicit the perception of local stakeholders on activities harmful to the marine habitats. The results of the analysis showed that various respondent groups had similar preference rankings on the harmful activities: littering, discarding fishing equipment, excess fishing and too many divers that cause damage to habitats in the MPA area. The findings suggest that policy makers should take cognizance of the local stakeholders' concern in planning and designing of marine protected areas in Malaysia.

This paper examines the economic benefits of artificial reefs (ARs) on artisanal fishers in Terengganu in the east coast of Peninsular Malaysia. The data for this study was obtained from interviews with 290 artisanal fishers from three districts of Terengganu, using a structured questionnaire. The study found that for fishers, income from fishing was significantly lower in AR areas, compared to non-AR areas. The income of the fishers who used drift nets as their main fishing gear was significantly lower in AR areas. This indicates that income from fishing was not attributable to the AR programme in Malaysia. The results suggest that artificial reefs may not be effective at increasing catch and income for artisanal fishers in Terengganu. Furthermore, the larger-engined boats gained substantial fishing income, which seems to reflect unequal distribution of benefits, because only those who could invest in fishing equipment and who spent more on fishing operations were able to gain maximum benefits. The results suggest that the current use of multiple gear in the same fishing locations created conflicts between various groups of fishers, and increased fishing costs. These conflicts could be reduced if the artificial reef locations are clearly marked and they established user rights among various fisher groups. The fisheries agencies involved in artificial reefs programme should ensure that artificial reef development produces positive social and economic benefits for the local fishing communities through sustainable fisheries management in Malaysia.