Factors Affecting the Technical Efficiency Level of Inshore Fisheries in Kuala Terengganu, Malaysia

The objective of this study is to determine factors affectingthe technical efficiency of the inshore fisheries in KualaTerengganu. Data for the study was collected from a surveyconducted between June and August 2007 where 100 fishermenin 14 villages were chosen by stratified sampling. Data envelopmentanalysis (DEA) and Tobit analysis were employed to determinethe technical efficiency level and factors influencing technicalefficiency among the fishermen. Results of the study show that,most fishing units exhibit a low degree of technical efficiency.This implies that either fishing inputs were used inefficiently orinsufficient inputs were used in fishing activities. The meantechnical efficiency for the sample was estimated to be 55% forthe peak season and 40% for the non peak season. About 37%and 62% of the fishermen had less than 40% level of technicalefficiency in peak season and non peak season respectively.Management variables (planning, staffing and controlling) anddemographic variables (size of horsepower, size of family andformal education) exert positive effects on technical efficiencyof inshore fisheries in Kuala Terengganu. These findings suggestthat there is much room for improvement in efficiency among alarge segment of the inshore fishermen. With appropriate trainingand using more advanced technologies, fishermen’ level oftechnical efficiency can be raised.