Flood risk management: Leveraging finance for business resilience in Malaysia

This report looks holistically at the challenges of adaptation to climate change for businesses, exploring the complementarity among the public sector, the financial sector, and the private sector. Building resilience to flood risks is imperative for Malaysia’s sustainable private sector development and growth. Estimates in this report show that floods can cost Malaysia up to 4.1 percent of GDP by 2030.

This report leaves a more in-depth assessment of the range of actions that businesses can undertake and their effectiveness for future research.

• Enhance data availability, accessibility, and affordability to support flood risk assessments, which are vital for risk management, informed investment decisions, and the development of financial markets. 
• Develop a long-term national adaptation strategy, clearly outlining and communicating the priorities for the Government of Malaysia and defining the scope of action for the public sector.
• Strengthen the enabling environment for the financial sector to foster adaptation and emergency financing.
• Deploy targeted interventions to support access to finance for adaptation and recovery efforts, especially targeting the most vulnerable businesses, such as SMEs.
• Deepen insurance markets to enhance the range of financial instruments that can support the financial resilience of businesses in Malaysia