Many wetlands have experienced rapid degradation that is due to unstainable development practices globally. Oftentimes, uncoordinated economic development plans in wetlands and surrounding areas have affected the ecological functions of these sensitive ecosystems. This study examined Setiu Wetland, a wetland with diverse ecosystems on the east coast of Peninsular Malaysia. The main objective of this study was to analyse the potential of marine spatial planning (MSP) to be adopted there. MSP is an integrated coastal zone management tool to govern conflicting uses of an area considering environmental sustainably. Like other coastal zone managements adopted in Southeast Asia, MSP requires participation and awareness of the local community to ensure sustainable development targets are achieved. This paper addresses the local community’s awareness of the ecosystem importance of Setiu Wetland and the socio-economic activities in the area. The study employed a quantitative approach using a survey method to examine, in particular, the local community’s awareness of the oyster habitat that has a direct impact on the Setiu Wetland ecosystems. The research findings indicate that awareness of the importance of oyster habitats to the wetland ecosystems is high among the local community. The community strongly supports the idea of protecting and preserving the wetland to ensure the healthy functioning of ecosystems.