June 7, 2011

 

Malaysian aquaculture prices to skyrocket on boycott

 

 

Prices of Malaysian seafood and aquaculture are expected to soar sky-high this month following a decision by Malaysian deep-sea fishermen to stop fishing.

 

The fishermen, who operate C2 trawlers nationwide, are boycotting the sea in protest against the government's decision to pull back their fuel subsidies. C2 operators are allowed to fish 30 nautical miles off the Sarawak coast. The latest group of fishermen to announce their boycott are from the area Kuching.

 

Despite widespread appeals from fishermen and other affected groups, Domestic Trade, Cooperatives and Consumerism Minister, Ismail Sabri Yaakob, reiterated on June 3 that the government had already enforced the subsidy cut on June 1 as planned.

 

Following what was seen as the government's "arrogant dismissal" of their pleas, the Kuching Trawlers Association and its members unanimously decided on Saturday (Jun 7), during a meeting, to stop going out to sea for a month. The move was in line with calls by its counterparts nationwide to launch a boycott.

 

The Perak division had earlier announced a boycott to take effect on June 11. It is learnt that several other divisions in peninsular Malaysia will also hold similar boycotts between June 11-13.

 

It was also learnt that the Kuching division will be meeting with MCA president Dr Chua Soi Lek next month for a solution.

 

An industry source said that the government's refusal to listen would be its downfall. "I think everyone is shocked that the government is not listening to our pleas. We have warned them of serious repercussions," the source said.

 

"We are Malaysian fishermen but we are already competing with foreign trawlers with C2 licences. These foreign trawlers also enjoyed fuel subisides," he said, adding that there are some 280 foreign trawlers.

 

The source added that the future was bleak now for deepsea fishermen in Malaysia given the dwindling catch in recent years and competition from foreign trawlers. "Most of us will eventually have to switch vocations," he said.

 

Earlier this week, Kuching division secretary, Tan Boon Ting, said that cutting fuel subsidy "should not be taken lightly."

 

"If the cut is in place, we will have to pay an extra MYR10,000 (US$3,324) per trip. It is impossible for us to absorb this extra cost. If we do that, members will have to adjust the price of fish and the consumers will pay higher prices, and it will have serious repercussions on the fishing industry," he said.

 

There are 101 Malaysian trawlers operators in Sarawak with C2 licences. Until May 31, 2011, the C2 trawler operators received a subsidy of 28,000-30,000 litres of diesel at MYR1.25 (US$0.415) per litre per month.

 

But, according to Sarawak Fishing Vessel Association chairman Ha Tung Ting, the removal of subsides now means the operators will have to pay MYR1.90 (US$0.632) a litre.

 

Ha said that the Association would be urging Deputy Agriculture and Agro-based Industry Minister Chua Tee Yong to help rescind the decision.

 

The C2 trawlers and nine other logistic-related groups are affected by the withdrawal of super subsidies for fuel.
 

The move, which the Malaysian government said would help it save RM659.30 million (US$219 million), was necessitated by the global increase in fuel prices, a view which has come under heavy fire from the opposition and consumer groups.

 

Groups opposing the cuts have urged the government to abolish subisides to Independent Power Producers (IPP) and AP (approved permit) holders.

 

The RM659.30 million (US$659.30 million) in savings will result in the cost of food skyrocketing in already expensive Sarawak, where salaries do not match those in Kuala Lumpur.