Environmental Governance in Transition: Evaluating Stakeholder Participation in Terengganu’s Coastal Development

Coastal development in Malaysia increasingly pits economic growth against environmental sustainability and social equity, with Terengganu emerging as a critical case study of these tensions. This study examines stakeholder engagement processes in Terengganu’s coastal governance, focusing on how power imbalances, institutional weaknesses, and competing priorities shape environmental decision-making. Through qualitative interviews and focus groups with government officials, private developers, NGOs, and local community leaders (n=20), the research reveals that despite participatory mandates, decision-making remains dominated by state and corporate actors, marginalizing vulnerable groups such as small-scale fishers and indigenous communities. NGOs play a watchdog role but face limited enforcement power, while developers prioritize short-term economic gains over long-term ecological resilience. The findings support two key hypotheses: (1) greater stakeholder inclusivity leads to more sustainable outcomes, and (2) power asymmetries systematically hinder equitable participation. Drawing parallels with governance innovations in Malaysia’s Halal supply chains, where certification standards and accountability mechanisms have enhanced compliance, this study proposes policy reforms to strengthen participatory frameworks. Recommendations include establishing independent oversight bodies, institutionalizing benefit-sharing mechanisms, and integrating traditional ecological knowledge into planning processes. The study contributes to global debates on environmental governance by demonstrating how top-down development models exacerbate social-ecological conflicts while offering pathways for more inclusive and adaptive coastal management. Future research should explore digital tools (e.g., AI, blockchain) for enhancing transparency and the potential for scaling these reforms across Southeast Asia’s rapidly developing coastal zones.