Malaysia Faces Rising Climate Risks Amid Floods, Heatwaves and Economic Losses

Climate risks are intensifying worldwide, and Malaysia is no exception. According to the World Meteorological Organization, disasters have increased fivefold in the past 50 years, driven by climate change, extreme weather, and better reporting. Even a one‑degree rise in temperature can trigger a 7% increase in rainfall, worsening floods and droughts. In Malaysia, floods are an annual occurrence, while heatwaves strike mid‑year, often disrupting livelihoods and health.

Climate Risks

Bank Negara reported that between 1998 and 2018, Malaysia sustained RM8 billion in damages from floods and dry spells, affecting more than three million people. The major flood event in late 2021 alone caused RM6.1 billion in losses, equal to 0.4% of GDP. These events stretch healthcare systems, damage infrastructure, and disrupt supply chains.

Globally, greenhouse gas emissions remain the main driver of climate change. While 107 countries responsible for 82% of global emissions pledged net zero in 2024, current commitments fall short, reducing emissions by only 12% by 2035 compared to the 55% target.

Mitigation

Malaysia has focused more on mitigation, such as reducing carbon emissions, but adaptation measures like flood resilience and drought preparedness remain critical. Without stronger action, climate risks will continue to threaten Malaysia’s economy, environment, and people. – Source: AmBank Research

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