Introduction to Malaysia

Malaysia, a diverse, medium-sized state in Southeast Asia, has a population of 34.3 million,1 of which 21% is rural.2 With both Peninsula Malaysia and East Malaysia situated less than 7° north of the equator, the country faces humidity year-round with a near-uniform tropical rainforest climate.3 Malaysia is no stranger to extreme weather events, especially the coastal areas, which face significant vulnerability to flooding, rising sea levels, and droughts.4 The country has historically achieved remarkable economic success, averaging 6.9% annual GNI growth since independence from the British in 1957 and having less than 1% of its population living below the international poverty line.5 Although agriculture contributes only around 10% of GDP, the service and manufacturing industries comprise 52% and 28% of Malaysian GDP, respectively.6  Due to Malaysia's immense global connectivity, high Foreign Direct Investment (FDI) rates, and strategic growth development policies, external trade accounts for over 130% of GDP.7 When considering economic growth and policy, it is crucial to note Malaysia's diverse demographics. While the majority of the country is Malay and predominantly practices Islam, there is a sizable minority population of Chinese and Indian communities that practice Buddhism, Christianity, and Hinduism.8  

Mapping Major Climate Events and Climate-Induced Displacement

Although Malaysia ranks in the top 50 within the Global Adaptation Index, it ranks in the top ten countries with the highest number of displacements due to floods and droughts.9 Since 2008, Malaysia has had 589 natural disasters resulting in 1.1 million internal displacements,10 and in just the last eight years, over 354,000 climate-related internal displacements have been reported.11 These impacts have been more pronounced in recent years, with Malaysia affected just once by extreme events in 2013 compared to 127 times in 2023.12 The December 2021 Malaysian floods are a significant yet stark example of the country’s climate vulnerability that will go down in the country’s history, causing over 50 deaths, 40,000 displacements, 400,000 evacuations, and a financial loss of $1.4 billion.13 Government disaster response systems were overwhelmed, transportation and evacuation routes were damaged or submerged, and thousands of homes were flooded.14 Events like these threaten to exacerbate current poverty and inequality levels for low-income Malaysian households, as they typically work in climate-vulnerable sectors such as agriculture and fishing.15 Other vulnerable populations include Malaysian youth, 90% of which have experienced climate and environmental-related effects, such as floods, vector-borne disease, and worsening air quality.16  

Mapping the Costs of the Climate Crisis

Malaysia’s current GDP is $399.7 billion and has experienced exponential growth over the last few decades.17 While Malaysia has had great international success, they must heed future dangers, as it is estimated the country is annually losing $1.3 billion from natural hazards18 and is predicted to have a 6% annual GDP loss in a scenario with partial ecosystem collapse—due in part to climate impacts.19 These current and potential impacts are pronounced across key sectors. For example, the increased severity and frequency of droughts and floods have caused a 32% decline in Malaysian fisherman earnings on the east coast and a 5.7% decrease in the agriculture sector’s growth.20 Models have predicted that rice yields may decrease by up to 60% while the cultivation of rubber, palm oil, and cocoa is expected to decline, heavily impacting Malaysian trade revenue.21 Urban residents are vulnerable too, such as in Kuala Lumpur, where the Urban Heat Island (UHI) effect can cause extreme haze damage and pollution, resulting in losses of up to $321 million.22 Tourism is another vital industry in Malaysia, representing 11.8% of all jobs.23 However, many tourists visit the coastal states, which are highly vulnerable to the climate crisis, posing challenges to tourist infrastructure and appeal. Finally, Malaysia’s financial sector is also at risk, with 11.7% of the assets of the country’s financial institutions in climate-vulnerable sectors.24  

Mapping Resilience and Mitigation Pathways

Despite being responsible for less than 0.77% of global GHG emissions, Malaysia still ranks in the top 50 countries most vulnerable to the climate crisis.25 On the domestic scale, Malaysia has updated its Nationally Determined Contributions (NDCs), which targets to cut carbon intensity against GDP by 45% by 2030 compared to 2005 levels26 through policy-making, development planning and implementation, and guidance and reporting.27 To achieve its NDC, Malaysia does not intend to use voluntary cooperation under Article 6 of the Paris Agreement, meaning it will meet its climate commitments through domestic actions rather than relying on international market mechanisms or carbon markets.28 For example, Malaysia has introduced the Malaysia National Energy Transition Roadmap (METR), which established a new low-carbon pathway for an energy transition through renewable energy projects.29 Through the Green Technology Master Plan, Malaysia aims to reach a 40% overall public transportation share by 203030 and to have 15% of all vehicles be electric by 2030.31  After the violent 2021 floodings, Malaysia implemented a $3.3 billion Flood Mitigation Plan until 2030 that acts as a long-term strategy to mitigate and adapt to future floodings.32 This included new water management and drainage systems, flood warning systems, advanced dam infrastructure, and retention pond construction.33 They have also planned to utilize nature-based solutions like floodplain areas and mangrove trees to combat storms and floods.34

Necessary Changes

Malaysia must primarily look towards strategies to protect against flooding and rising sea levels as the climate crisis surges on. These adaptations include developing technologically advanced flood mitigation strategies, strengthening disaster risk management, strengthening the regulatory framework of the water services industry, expanding the water supply network and efficiency of water supply services, expanding implementation of research-based agricultural practices, and developing a National Coastal Vulnerability Index to measure risk.35 Through the establishment of forest preserves and other measures,36 Malaysia is also battling the tremendous degradation of its ecosystems due to significant deforestation and agricultural expansion for crops like palm oil.18 By continuing to scale down deforestation numbers, Malaysia can severely cut down carbon emissions, as 39.6% of all oil palm planted areas come from deforestation,37 severely limiting the abilities of natural carbon sinks. Malaysia also has to reduce its dependence on the oil and gas industries as the country has the second highest demand for energy per capita in Southeast Asia,38 is the second-largest oil producer in Southeast Asia, and the world’s third-largest exporter of liquefied natural gas—making up 19.2% of total government revenue.39 However, to disembark on an energy transition towards low-carbon development, the country requires at least $375 billion by 2050, highlighting the need for international support in the form of debt cancellation and grants, in conjunction with domestic efforts that take seriously the needs of the country’s most marginalized communities.40