FINTECH ADOPTION IN MALAYSIA'S AQUAFARMING INDUSTRY: CHALLENGES, STRATEGIC PATHWAYS, AND FUTURE OPPORTUNITIES FOR SUSTAINABLE DEVELOPMENT
DOI:
https://doi.org/10.35631/AIJBES.829047Keywords:
Aquafarming, Fintech Adoption, SustainabilityAbstract
Financial technology (Fintech) presents viable pathways to accelerate the digital transformation of Malaysia's aquafarming sector. This conceptual study employs an integrative literature review and policy analysis to examine the structural barriers and strategic enablers governing Fintech adoption within the Malaysian aquafarming ecosystem. While prior literature has broadly addressed Fintech in general agriculture, sector-specific operational realities of aquafarming such as biological production risks, high informality, and fragmented cold chains remain underexplored. Addressing key empirical gaps, this study identifies four primary structural barriers: credit exclusion resulting from strict physical collateral demands and unrecorded cash histories, supply chain fragmentation exacerbated by downstream cold-chain deficits, digital literacy and trust deficits among smallholder producers, and regulatory ambiguity concerning aquaculture-tailored financial mechanisms. To mitigate these challenges, this study proposes a targeted four-pillar strategic framework comprising alternative data-driven micro-financing (including Shariah-compliant instruments), blockchain-enabled supply chain traceability, community-based digital capacity building, and collaborative regulatory sandboxes. Furthermore, the study connects emerging technologies directly to operational aquafarming functions: artificial intelligence (AI) and big data for parametric risk assessment and water-quality automation, decentralized finance (DeFi) for peer-to-peer working capital, and green Fintech for sustainability-linked credit and ESG validation. This paper provides actionable insights for policymakers, financial institutions, and aquaculture operators seeking to enhance financial inclusion and build resilient, sustainable food production systems.
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