Bureaucratic Red Tape Reforms: LKIM Saves Millions, Strengthens Fishermen Database

JOHOR BAHRU, Nov 30 (Bernama) -- The implementation of two Bureaucratic Red Tape Reform (RKB) initiatives by the Malaysian Fisheries Development Authority (LKIM) since last year has not only expedited administrative processes within the fisheries sector but also saved millions of ringgit and strengthened data integrity involving thousands of fishermen nationwide.

The two initiatives — cross-checking the Fishermen’s Living Allowance (ESHN) and digitalising the approval of fish marketing via the MyLesen system— have positioned LKIM as one of the leading agencies spearheading digital transformation in public service delivery.

LKIM Director-General Muhammad Faiz Fadzil said the ESHN cross-checking project integrates data between LKIM’s e-Declaration System and the National Registration Department’s (JPN) Agency Link-Up System (ALIS), enabling automatic monthly verification of deceased fishermen to ensure accurate allowance payments.

“Checks that previously took up to seven days can now be completed within 24 hours, reducing the risk of leakages and ensuring that only eligible fishermen receive assistance,” he told Bernama.

He said that 5,408 fishermen in 2024, and an additional 965 fishermen up to October this year, were identified as deceased and automatically removed from the recipient list through the new process.

This improvement prevented undue payments to about 300 deceased recipients annually, saving RM1.08 million, while eliminating NRD verification fees provided an additional RM420,000 in savings.

Muhammad Faiz added that the MyLesen system has also shortened the Fish Trading License approval period from 21 days to 14 days. The system enables the entire application process — including document submission and payment — to be completed online.

Previously, applicants were required to go to LKIM offices and submit physical documents, which prolonged processing times and disrupted business operations, particularly for import and export industry players.

With the new system, applicants also receive automatic license renewal reminders three times before expiry, helping to prevent disruptions to the fish supply chain.

He said that MyLesen has boosted officer productivity, reduced manual workload and accelerated daily administrative processes that once required additional time for physical verification.

“This reform is crucial because the faster a license is issued, the faster transactions can occur, indirectly generating national revenue and contributing to the country’s economic growth,” he said.

Muhammad Faiz emphasised that LKIM’s RKB success is driven by a shift in officer mindset, with personnel increasingly willing to work faster, more transparently and in a data-driven manner in line with ongoing reform demands.

He noted that RKB involves more than adopting new technology — it also requires a transformation in work culture, as the effectiveness of reforms depends heavily on adherence to SOPs and data accuracy.

“When officers see clear outcomes such as time savings, improved data accuracy and reduced leakages, their acceptance of digital transformation grows stronger,” he added.

He said LKIM is also implementing full digitalisation of subsidised fuel distribution through the MyMinyak application, which will further reduce leakages and ensure that only eligible fishermen receive the benefits.

LKIM is also implementing full digitalisation for the distribution of subsidised oil through the MyMinyak application, which will reduce leakage and ensure that only fishermen are truly eligible to receive the benefits, he added.

-- BERNAMA