Unhappy fishing boat operators, wholesalers and exporters in Sarawak claimed that foreigners, especially Thais, have been siphoning most of the profits from deep-sea fishing activities within Malaysia's Exclusive Economic Zone (ECC) off the 600-km Sarawak coastal waters.

"It is estimated that Sarawak is losing a few hundred thousand ringgit every day through the chartering of foreign fishing vessels using permits that have been issued since the late 1990s by the government to politically-connected companies and individuals," a Kuching-based fishing fleet operator told malaysiakini today.

Most of their catch is taken off the vessels and loaded at open seas onto mother vessels four to five times their size, complete with cold rooms for supply-hungry surimi, fishmeal and sardine factories in Thailand, according to SH Tay, managing director of Woodera Resources and Wimbledon, two local companies managing the operations of a fleet of 14 local fishing vessels, mostly in shallower waters.

"Sarawak never gets the chance to see much of their landing onshore," he added.

The Ministry of Agriculture has to-date approved a total of 140 yearly-renewable deep-sea fishing vessel licences with permits to charter foreign vessels after the mid-1997 economic crisis to try and cut down on the nation's high food import bill.

Tanjung Manis base

Most of these foreign charter vessels ranging between 100 and 200 in gross tonne are based in Tanjung Manis, at the estuary of the Rajang River near Sibu with the rest of China as well as the Philippines.

Another local fishing boat operator cum wholesaler said the government should have offered the opportunities in the first place to existing players in Sarawak, Sabah and Peninsular Malaysia to provide the fishing vessels instead of relying on foreign charter vessels.

"This would have prevented the outflow of foreign exchange for the charter," the operator who preferred not to identified told malaysiakini .

"Admittedly, it is a high-risk venture but the returns are also high, especially when prices are so good now. There are always willing local investors, if not in Sarawak then in Peninsular Malaysia or even Sabah," he added.

Even locals could be persuaded to work as crew members if they are offered the same pay and incentives, he said, adding that "we can only hire foreign workers, if necessary."

According to a Marine Fisheries Department spokesman, the government policy is to allow foreign charter vessels only up to 2006.

Easy money

In two years' time, the policy is to have all foreign charter vessels replaced altogether.

But most players in the local fishing industry think there is going to be strong pressure on the government to let the policy stay for a longer period.

"For the permit holders, the money is too good and too easy. Most of them are not fishing industry people, anyway. They are mere licencees who 'sell' their permits to foreigners," the operator said.

According to well-informed sources, each permit fetches between RM5,000 and RM8,000 per month which is considered a very small sum when compared with the profits of the foreign operator.

It is estimated that the average profit from the catch of each boat is no less than RM30,000 per month/trip or RM360,000 yearly. The total catch of the foreign charter vessels is estimated at no less than RM150 million per year.

"These foreign charter trawlers operate round-the-clock not only in the permitted ECZ but also daring enough to encroach shallower waters within the 30 nautical miles off Sarawak coast," BP Chia, manager of an established fishing fleet company said.

Their foreign owners have invested heavily on their vessels, said to cost at least RM1 million each, with sophisticated equipment for finding fish and for trawling in deep waters.

In recent years, there has been less jobs at home because marine resources are said to be depleting owing to over fishing and the Thai government has taken steps to control fishing within their own waters.

On the other hand, there is growing demand from surimi and fish-meal factories in Thailand needing supplies. Thai fishing companies have grabbed at the opportunities to come to Sarawak.

A number of Filipino fishing vessels have lately made their appearance in Sarawak too. They have come to seek the supply of fish for sardine factories in the Philippines.

Opportunities for M'sians

Local operators now want the government to stop the policy of allowing foreign charter vessels and instead offer Malaysians the same opportunities and benefits.

"Present policy of lending institutions such as Bank Industri Malaysia and Bank Pertanian is not making it easy for players in the local fishing industry to obtain financing to purchase vessels," one said.

"Even though the interest rates may be lower than most other banks, they insist on so many collaterals that it is virtually impossible to raise financing to buy or even build fishing vessels," he pointed out.

The policy would only encourage foreign charter vessels, he added.

According to him, because most foreign charter vessels do not land their catch locally, there is always a shortage of supply in the domestic market. Hence Sarawak continues to import fish even from as far as India.

"If these foreign charter vessels bring in their catch on shore, there will be enough supply in the local market and then we could encourage the development of our own downstream activities like fish processing for local needs and exports and, at the same time, provide many jobs.".

TONY THIEN is malaysiakini 's Sarawak-based stringer.