This case study examines the livelihood of small-scale fish farmers in the state of Kedah, Malaysia, with emphasis on their asset possession, livelihood strategies performed and livelihood outcomes achieved. The relationship between these livelihood elements was also analyzed in order to identify the triggering factors contributing to their sustainable livelihood. Data were obtained through systematic socio economic survey of 216 small-scale freshwater and brackish-water pond fish farmers using stratified random sampling. The Structural Equation Modelling method was applied to analyze the relationship between the three elements of the fish farmers' livelihood. The results show that there are significant differences between freshwater and brackish-water systems, particularly in terms of profitability and contribution to the livelihood of farmers due to their involvement level in the activity. Human and financial assets are important components in the livelihood of small-scale fish farmers based on their positive influence on the level of Good Aquaculture Practices, species cultured, total household income and social impact variables. Thus, measures related to the enhancement of farmer's knowledge and their financial status should be emphasized in order to improve the livelihood of small-scale fish farmers in Malaysia.