Accounting Challenges in Agriculture: diving into the Fish Pond-Evidence from Malaysia’s Aquaculture Sector

Abstract

Agriculture and food security are becoming increasingly important in the Malaysian economy, as the nation continues to focus on ensuring a stable and sufficient food supply for its growing population. Within this context, aquaculture has emerged as a crucial sub-sector that contributes significantly to the availability of affordable protein sources, supports rural livelihoods, and strengthens national food security. The expansion of aquaculture activities has not only created business opportunities but also encouraged innovation in farming methods, resource management, and market distribution. As the sector continues to grow, aquaculture entrepreneurs play an essential role in maintaining consistent production and meeting consumer demand at both local and national levels. Despite this, research on accounting challenges in the agriculture sector and the solutions provided by Accounting Information System (AIS) has limited empirical evidence, which this study aims to address by investigating AIS competency among aquaculture business owners in Malaysia. The purpose of the study is to address critical challenges in accounting management relevant to AIS competency in aquaculture. The study employs a qualitative research design using in-depth interviews with aquaculture entrepreneurs. A thematic analysis of the data was conducted to identify potential underlying weaknesses in management accounting practices. Results showed that some recurring problems include a shortage of proper record-keeping practices, ignorance of the accounting system, a lack of accounting knowledge and exposure, and poor discipline and awareness regarding record-keeping practices. Overall, these findings the need for greater investment in AIS competency among agricultural sector stakeholders, particularly aquaculture entrepreneurs, to improve accounting practices and advance sustainable business development.