Shrimp aquaculture is playing a vital role in Malaysian agriculture, especially its increasing
contribution to economic growth. White shrimp aquaculture is not only the key player in brackish
water shrimp aquaculture but also the largest contributor to Malaysian shrimp aquaculture. This
study estimates technical efficiency and investigates factors affecting technical inefficiency of
Malaysian white shrimp aquaculture. Stochastic frontier analysis with trans-log production
model is applied in this study. Malaysian white shrimp aquaculture farmers have achieved
an estimated average technical efficiency of 81.2 percent. Land ownership, shrimp seed size
and seminar are the factors having significant impacts on technical inefficiency and thereby
playing important roles in improving technical efficiency of this industry. This study suggests
that seminar should be conducted by shrimp farming extension agents to enhance knowledge
of shrimp farmers. Malaysian government should allocate lands and, provide technical and
financial supports to develop this industry. Subsidy on shrimp seed should be also given to
encourage shrimp farmers to embrace and adopt quality shrimp seed for their farms.