Journal of Engineering and Applied Sciences

Year: 2019
Volume: 14
Issue: 3 SI
Page No. 6066 - 6071

Analysing Determinant of the Technical Efficiency of Seaweed Operators in Semporna, Sabah, Malaysia

Authors : Abdul Rahman Saili, Nurul Hisifbli Ibrahim, Fazleen Abdul Fatah, Muhamad Zahid Muhamad and Nur Aziera Ruslan

Abstract: The worldwide seaweed industry is expected to contribute more than RM 20 billion annually as it is useful in food, health and pharmaceutical industries. Seaweed farming is an export-oriented aquaculture subsector that is rapidly spreading specifically throughout the region of South East Asia. The main objective of this study is to identify the technical efficiency factors among the seaweed farms in Semporna, Sabah. Technical efficiency analysis is important because it will give the respondents and agencies a view to study seaweed farm from the current level of efficiency. This study was conducted in Semporna, Sabah and involved 81 respondents. This study used two stage methods whereby, the technical efficiency score first was calculated by using the DEAP 2.1 Software and then regressed with independent inputs. The technical efficiency score demonstrates that seaweed farms in Semporna have efficiency score at average of 69%. It shows that the average seaweed farms were operating at the increasing returns to scale rate which then indicating that the possibility for the farm to increase their yield with the currently available array of inputs and existing technology. On the other hand, the adjusted R2 is 0.433 indicating all the variables included in this regression model were only able to explain about 43.3% of influence towards the technical efficiency. Only personal control, age, experience and labour inputs were significant to the technical efficiency. This indicates that these factors influencing the farm technical efficiency. The seaweed farming in Malaysia is still under the development phase. Thus, it is important to extend the mini-estates programme and encourage more innovation activities among the public research institutions and local universities.

How to cite this article:

Abdul Rahman Saili, Nurul Hisifbli Ibrahim, Fazleen Abdul Fatah, Muhamad Zahid Muhamad and Nur Aziera Ruslan, 2019. Analysing Determinant of the Technical Efficiency of Seaweed Operators in Semporna, Sabah, Malaysia. Journal of Engineering and Applied Sciences, 14: 6066-6071.

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